Govt Approves Revised Levy Rates to Fund Fire and Emergency New Zealand

Earlier this year, FENZ proposed a 5.2 percent increase to the levy, which raised concerns about the impact on New Zealand households and businesses.

Minister of Internal Affairs Brooke van Velden has confirmed that the Government has approved revised rates for the redesigned levy that will fund Fire and Emergency New Zealand (FENZ) starting July 2026.

Earlier this year, FENZ proposed a 5.2 percent increase to the levy, which raised concerns about the impact on New Zealand households and businesses. “I was not convinced that such an increase was justified and requested FENZ to find a solution that would ensure service continuity while managing revenue responsibly,” Ms. van Velden stated.

The new rate has been set at a more manageable 2.2 percent increase. This adjustment is intended to adequately fund FENZ's essential frontline services while minimizing financial strain on Kiwi levy-payers.

In a notable change, the flat charge for vehicle insurance will be reduced from an initially proposed $40.12 to $25. This decision reflects public feedback during FENZ’s consultation process, which emphasized the need for a fair apportioning of costs relative to the number of motor vehicle incidents. The adjustment means the charge will now better align with FENZ's operational costs related to vehicle-related emergencies.

“Considering the rising cost of living for New Zealanders was a significant factor in determining these rates,” Ms. van Velden said. “We want to ensure Kiwis are not paying more than necessary while still ensuring FENZ is well-resourced to maintain high standards of service.”

To further ensure fiscal responsibility, the Minister has requested that FENZ implement savings of $60 million by the end of the three-year levy period. These savings will serve as a reserve for unexpected costs or any under-collection of the levy.

“This Government is committed to making fiscal decisions that drive greater value from spending, enabling us to deliver better public services for all New Zealanders,” van Velden emphasized.

The new levy will replace the existing transitional levy starting in July 2026. Draft regulations outlining these changes will be presented to Cabinet for consideration later this year. The government is encouraging public feedback to ensure that the revised levy structure meets the needs of both FENZ and the communities it serves.