The Hibiscus Coast community can now plan ahead with clarity as the Government confirms final levy rates to fund Fire and Emergency New Zealand (FENZ).

The new rates will come into effect from July 2026, following a decision by the Minister of Internal Affairs, Brooke van Velden.

The levy, applied to most insurance contracts covering properties, vehicles, and contents, will see significant changes aimed at balancing affordability for New Zealanders while ensuring FENZ remains well-resourced.

“Earlier this year, the Government agreed to a 2.2 percent increase to the rate of levy. Fire and Emergency publicly consulted on an increase of 5.2 percent earlier in the year. However, this was revised down as I was not convinced that such an increase is justified and requested an alternative solution from Fire and Emergency,” Ms van Velden said.

The maximum annual levy for homeowners will drop to $107.40, down from $119.50.

Personal property insurance, such as contents, will also see a decrease, with a maximum levy of $21.48, compared to the previous $23.90.

Vehicle insurance, including third-party-only cover, will be subject to a flat fee of $25, significantly reduced from the $40.12 initially proposed during consultation.

Ms van Velden acknowledged the insurance industry’s request for early confirmation of regulations, giving businesses 18 months to implement the changes.

“I am pleased that the Government has approved the regulations this month, providing confidence to businesses about how the levy will be applied and collected,” she added.

In addition to the revised levy rates, Ms van Velden highlighted the importance of prudent financial management.

“I have also asked FENZ to deliver savings of $60 million by the end of the three-year levy period. These savings will provide a reserve for significant unexpected costs or under-collection of the levy.”

The changes aim to address the cost-of-living pressures faced by New Zealanders while maintaining essential services for communities, including those on the Hibiscus Coast.

For more details, the summary of public submissions on the levy consultation is available at: Public-Consultation-Outcome-Levy-consultation-2024.pdf

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