Hon Brooke van Velden
Minister of Internal Affairs

Minister of Internal Affairs Brooke van Velden says the Government has agreed to the rates for the redesigned levy that will fund Fire and Emergency New Zealand (FENZ) from July 2026.

“Earlier this year FENZ consulted publicly on a 5.2 percent increase to the levy. I was not convinced that such an increase is justified and requested a solution from FENZ which would ensure continuity of services, while managing levy revenue responsibly,” says Ms van Velden.

“I am pleased to announce today that the rate of levy increase has been revised down to 2.2 percent. I am assured that this will sufficiently fund FENZ to carry out the essential frontline work that they do keeping New Zealand communities safe, while mitigating the impact on levy-payers – Kiwi households and businesses.”

“FENZ consulted on a flat $40.12 charge to vehicle insurance, following Cabinet consideration this will now be $25. While acknowledging increasing costs is difficult for Kiwi motorists, fairly apportioning costs to the rate of incidence was a message that came through strongly from the public during consultation. This change from $9.53 to $25 for full cover insurance means the rate will now go someway to better reflect the number of motor vehicle incidents and the overall cost to FENZ’s response.”

“The cost of living for New Zealanders was a significant consideration for me when agreeing to the rates of levy. It is important that Kiwis are not paying more than necessary to ensure FENZ is resourced to maintain high standards of frontline services.”

“While FENZ must be funded appropriately to continue delivering its services, I have asked FENZ to deliver savings of $60 million by the end of the three-year levy period. These savings will provide a reserve for significant unexpected costs or under-collection of the levy.”

“This Government is committed to making fiscal decisions that will drive greater value from spending, so that we can deliver better public services for all New Zealanders.”

The new levy will replace the existing transitional levy from July 2026. Ms van Velden will provide draft regulations to Cabinet for consideration later this year.

Notes:

The FENZ levy is included in any insurance contract that covers property for loss or damage from fire, including cars, houses and contents, and non-residential property.

Other details of the cost to residential and non-residential property:

• The maximum annual levy on residential property (homeowners) will drop from $119.50 to $107.40
• The maximum annual levy on personal property (contents insurance) will drop from $23.90 to $21.48

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