Insurance-based levy to fund Fire and Emergency New Zealand

The Fire and Emergency transitional levy will be adjusted in July 2024

Fire and Emergency has been primarily funded by a transitional levy since the organisation was established in 2017. The transitional levy is a levy on insurance contracts and will continue until the new levy replaces it in July 2026 (see Fire and Emergency NZ funding review for more information on the new levy).

The transitional levy rates are set to increase on 1 July 2024. This change will help meet the costs of the Collective Employment Agreement between Fire and Emergency and the New Zealand Professional Firefighters’ Union, signed in December 2022.

The transitional levy rates will increase by 12.8 per cent flat rate for all levy payers. This means that from July 2024:

  • A household with coverage of their contents and one car will pay $4 more per year on their insurance premiums.
  • A household with coverage of their home, contents and two cars will pay $18.50 more per year on their insurance premiums.

The regulations that outline these changes can be found here: Fire and Emergency New Zealand (Levy Rates and Information Requirements in Transitional Period) Amendment Regulations 2023 (Legislation website). Updated guidance for insurers and other levy payers can be found on the Fire and Emergency website at Fire and Emergency levy rate (Fire and Emergency New Zealand website).