Fire and Emergency funding – information gathering on alternatives
June 2026
Over mid-2026 the Department of Internal Affairs is gathering information, as part of an early scoping exercise, about possible alternatives for funding Fire and Emergency New Zealand. This work does not involve consultation on developed options for change but explores instead what options might be feasible. The work is designed simply to provide an information base for any future review.
It is timely to ask if there are better ways to fund Fire and Emergency New Zealand
It is almost 10 years since Fire and Emergency New Zealand was established as a Crown entity. It has budgeted revenue of $904 million in 2026/27 rising to a forecast $938 million in 2028/29.
About 95% of its income comes from levies on residential and non-residential properties, and on motor vehicles, collected through insurance policies.
Given the significance of the levy, it timely to consider whether its design and operation remain appropriate, or whether improvements are possible.
This work is consistent with good regulatory stewardship
Under the Public Service Act 2020, all government agencies in New Zealand have stewardship responsibilities. It is good regulatory practice for the Department of Internal Affairs to consider as part of its assurance work whether the funding of Fire and Emergency is fit for purpose and future proof.
This work will provide a useful foundation for any future review. It will consider, for example, whether insurance is the only feasible collection method, or if there are other practical alternatives.
This baseline work will not have any impact on the new levy rates. These have been set for the next three years starting on 1 July 2026.
The work will gather information on alternative funding methods. It is designed as a resource that can be drawn on in any future work on regulatory or legislative settings for fire and emergency services.
Questions and Answers
Why is Fire and Emergency funding being addressed?
The exploratory work underway is designed to assess whether there are alternative funding mechanisms available for Fire and Emergency.
For example, whether alternatives to collection via insurance are available.
Why is the work happening now?
This type of work should happen periodically consistent with regulatory stewardship requirements.
What are the implications for the levy?
There are no implications for the new levy rates. These have been set for the next three years starting on 1 July 2026. Further information on the levy starting 1 July 2026 is available at: www.dia.govt.nz/firelevy
What changes will be implemented and when?
No changes are currently planned. Any changes to the current funding system will depend on any review work that may be commissioned on the basis of the outcome of this engagement.
Does this work intersect with the changes happening in local government?
This work is not a part of the initiative to simplify local government structures, and the levy is not a part of the local rates system.
This work will consider whether local authorities have a potential role in the collection of the national levy for Fire and Emergency services.
Will any funding system changes for Fire and Emergency create a risk of different standards of safety/protection depending on where a person lives in New Zealand?
No. Under any funding system it is a critical requirement that Fire and Emergency prioritises its resources to ensure it minimises the risks to life and property throughout New Zealand.
Will this work address the increasing risks expected from wildfires and flooding?
Such risks reinforce the need for a robust system for funding Fire and Emergency services.
The work will not specifically address serious weather and other such events. It will address alternative funding arrangements that will best enable Fire and Emergency to accommodate the demands on its services in future.
Why are you not consulting widely?
This is essentially an early scoping exercise to gather information to help determine the alternatives that may be available and their potential for addressing known issues. The work is designed to provide an information base for any future review. Any such future review that proposed options for changing the funding system would involve public consultation.
How does this work compare with previous work on funding options?
This exploratory work is about assessing whether alternative funding mechanisms are available. It is now some time since a review in 2019/20 concluded that the insurance model for levy collection was fit for purpose. More recent changes have focused on improving the insurance-based model. This work will consider if alternatives are available.
