The New Zealand Government has finalized the regulations for the levy on insurance contracts to fund Fire and Emergency New Zealand. The agreed-upon rate of 2.2 percent will come into effect from July 2026.
Minister of Internal Affairs Brooke van Velden says she was instrumental in revising down the initially proposed 5.2 percent increase after public consultation by Fire and Emergency. The final regulations have been finalized to provide businesses with sufficient time to implement the new levy, which is included on most insurance contracts covering property.
The maximum annual levy rates for residential properties will drop from $119.50 to $107.40, while personal property contents insurance will decrease from $23.90 to $21.48. Vehicle insurance will have a flat fee of $25, down from the previously consulted $40.12.
In determining the rate and application of the levy, Minister van Velden prioritized considering the cost of living for New Zealanders and ensuring Fire and Emergency has sufficient resources to deliver its services. The Government has also asked FENZ to achieve savings of $60 million by the end of the three-year levy period, providing a reserve for unexpected costs or under-collection of the levy.
The outcome of public consultations is available at [Public-Consultation-Outcome-Levy-consultation-2024.pdf].