Update on Fire Service Levies and Reforms March 2019

Fire and Emergency New Zealand (FENZ) funding structure may change

The Internal Affairs Minister, Tracey Martin recently announced the government will review how FENZ is funded, seeking to move away from collecting funds via insurance. The Minister has listened to industry body and levy payers’ concerns, that the proposed 2017 insurance funding model and levy regime would have a negative impact on New Zealand businesses and having a funding model based on insurance is flawed.

Current levy costs will stay the same in the interim

Clients will not notice any difference to their levy costs in the immediate future as the current transitional levy regime will continue for now. This includes the existing levy rates that apply to residential, commercial and motor vehicle insurance.

A Bill is before the Parliament to extend the current levy regime until July 2024, allowing time for the review and introduction of a new funding model.

Note: Insured art and items in the collections of public museums, public art galleries, or whare taonga are exempt from levy payments from 1 July 2019.

Have your say

The first step in the review will be the release of a discussion document in June for public feedback, it will outline alternative options for funding FENZ.

For further information contact
+64 3 543 8693 |  +64 27 836 2553 | crombielockwood.co.nz

More detail is available from: dia.govt.nz/Fire-Services-Transition