Coasties will see some relief with the Government's recent decision to lower the proposed levy increase for Fire and Emergency New Zealand (FENZ).

Minister of Internal Affairs Brooke van Velden announced the change, which will take effect from July 2026, after the Government reconsidered FENZ’s initial proposal.

Earlier this year, FENZ had proposed a 5.2% increase to the levy, which helps fund its services.

However, after reviewing the impact on local households and businesses, Minister van Velden requested a revised plan.

“I was not convinced that such an increase is justified and requested a solution from FENZ which would ensure continuity of services, while managing levy revenue responsibly,” she said.

The newly approved levy will now rise by 2.2%, a significant reduction from the original plan.

This decrease aims to strike a balance between ensuring FENZ is adequately funded and minimising financial strain on Kiwis.

"I am assured that this will sufficiently fund FENZ to carry out the essential frontline work that they do keeping New Zealand communities safe, while mitigating the impact on levy-payers – Kiwi households and businesses,” said Ms van Velden.

Among the key changes, vehicle insurance holders will notice a new charge.

Initially, FENZ had suggested a flat $40.12 fee for vehicles, but after public feedback, the final rate was adjusted to $25.

“Fairly apportioning costs to the rate of incidence was a message that came through strongly from the public during consultation,” noted the Minister.

This adjustment acknowledges the rising costs while ensuring the levy better reflects the costs of motor vehicle incidents that FENZ responds to.

Residential property owners will also benefit from lower rates, with the maximum annual levy dropping from $119.50 to $107.40.

Similarly, those with contents insurance will see their levy decrease from $23.90 to $21.48, offering some relief amidst cost-of-living pressures.

Minister van Velden emphasised that keeping costs manageable for New Zealanders was a priority.

"It is important that Kiwis are not paying more than necessary to ensure FENZ is resourced to maintain high standards of frontline services," she said.

While the levy is essential for maintaining FENZ’s operations, the Minister also tasked the organisation with finding $60 million in savings over the next three years.

These savings will act as a buffer for unexpected costs or any shortfall in levy collection, helping ensure fiscal responsibility.

The revised levy will officially replace the current transitional levy from July 2026.

Draft regulations are expected to be presented to Cabinet later this year for approval.