Fire and Emergency New Zealand Levy Changes Take Effect 1 July 2026.
Funding for Fire and Emergency New Zealand services comes almost entirely from a Fire and Emergency Levy (the levy) the Government collects on certain types of insurances, including home and contents, commercial property, vehicles and other assets that could be damaged by fire.
Generally, policy holders don’t pay the levy directly to FENZ; instead, it’s added to the premium on applicable insurance policies and then it is passed to FENZ.
What is changing?
The changes to the levy will apply to insurance policies commencing or renewing on or after 1 July 2026.
These changes are introduced under Part 3 of the Fire and Emergency New Zealand Act 2017 and the Fire and Emergency New Zealand (Levy) Regulations 2024.
What are the key changes?
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The levy will be calculated based on the sum insured only, there is no longer the option to use the indemnity/depreciated value.
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Levy rates will move from a single rate to multiple rates, depending on the type of property.
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All motor vehicles are subject to a flat levy of $25.00, replacing the previous weight-based rating structure. Third party cover will also now have a levy charged.
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Previously exempt property such as aircraft, livestock, forestry, growing crops, live plants, fruits/orchard trees and vines will now have a levy applied.
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All boats are now exempted from the levy, whereas previously trailered craft were levied. However, the flat motor vehicle levy still applies for any specified trailers included on the policy. A separate levy may also apply to specified personal effects/contents and recreational or fishing/diving equipment determined by the wording of each insurer’s policy.
Property class or insurance type
Annual levy rates from 1 July 2026
Insurance for motor vehicles
$25.00 (Annual amount for each motor vehicle insured, including third party only cover)
Insurance for residential & household property
Decrease in residential rate 0.1074% applied to both home and contents policies. No changes to existing caps of $100,000 ($107.40 per dwelling) and $20,000 ($21.48 per dwelling).
Commercial property
Decrease in non-residential rate to 0.0776% and calculated based on the sum insured only.
Mixed-Use Property
Revised assessment and rating approach for mixed residential and commercial property. Levy for landlords contents is also now charged per dwelling, capped at $20,000 per unit.
Aviation
Previously exempt, aircraft now have a levy applied for domestic aircraft (no scheduled international routes), capped at $77.60 per aircraft.
Forests
Previously exempt, levy now applies 0.0194%, no capping.
Livestock/Bloodstock (including working animals)
Previously exempt, levy now applies 0.0194%, no capping.
Growing crops, Live Plants/ Fruit & Orchard Trees/Vines
Previously exempt, non-residential rate of 0.0776% now applies, no capping.
Contract works insurance
Levy applies to the full sum insured, rate is now 0.0388%. Levy is charged on contract value and principal supplied goods.
Transit
For goods in transit in New Zealand, the levy rate and calculation method depend on the nature of cargo being transported. The levy rates that apply to commercial goods, livestock and household goods apply whilst in local transit, however they are pro-rated.
What does this mean for your insurance?
If you have renewed your cover prior to 1 July 2026, there is no change to the levy during your current term of insurance (except where you add additional property/risks to your cover). At your next renewal in 2026 or 2027, the new levy rates will apply.
If you have not renewed your cover prior to 1 July 2026, the new levy rates will apply at your next renewal.
Talk to your Aon broker
At Aon, we’re committed to bringing clarity and confidence to every change, so that you can make Better Decisions for your business. Contact your Aon broker to discuss how the new levies may affect your policies or to review your existing covers and sums insured. We can also help you to plan ahead so you can make confident, well-informed decisions at renewal.
Contact Us
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