In July 2024, the Fire and Emergency New Zealand (FENZ) levy system introduced transitional adjustments, with additional changes coming into effect in July 2026.
Here we set out a reminder of the changes that were enacted 12 months ago and also summarise what you can expect in a further 12 months.
Under each of the amendments for 2026, we have listed what you should note or look out for in respect of these changes.
Transitional levy increase (effective 1 July 2024)
- The transitional levy increased by 12.8% on 1 July 2024.
- The increase was intended to help FENZ meet operational costs until the new levy system (Part 3 levy) is implemented in 2026.
You can see a summary of the levies here.
Additional amendments (effective 1 July 2026)
Four key amendments will come into force from 1 July 2026 under the Fire and Emergency New Zealand (Levy) Amendment Act 2023:
1. Levy basis change:
- The levy will be calculated based on the sum insured for fire damage, rather than the indemnity value, for non-residential buildings.
What to look out for
- Identify the sum insured for fire damage. This will be the basis for the new levy.
2. Motor vehicle insurance:
- A flat fee will apply to all motor vehicle insurance policies, regardless of vehicle weight, type, or value.
What to look out for
- For motor vehicles, note how your current levy compares to the proposed flat fee.
- This may benefit owners of heavier vehicles over 3.5 tonnes as the FENZ levy will be capped at $25.
3. Residential vs non-residential property:
- Mixed-use buildings will be split. Residential and non-residential parts of a property will be levied separately:
- Residential parts will pay the residential levy rate.
- Non-residential parts will pay the non-residential levy rate.
What to look out for
- Confirm whether your property is classified as residential, non-residential, or mixed-use and confirm with your broker.
- This could increase complexity and possibly raise costs for landlords or businesses in mixed-use buildings.
4. Levy categories:
The levy will apply to the following insurance categories:
Source: firelevy - dia.govt.nz
If you have any questions about the FENZ changes, please contact your broker.
