Fire and Emergency NZ (FENZ) Levy Changes

Information for Dawson Insurance Brokers’ Clients

From 1 July 2026 updated Fire and Emergency NZ (FENZ) levy regulations come into effect.

These regulations introduce changes to both the levy rates and how the levy is calculated across a range of insurance policies.

For commercial and non-residential property owners, the changes are more significant. This guide explains what the levy is, what has changed and how it may affect you.

What is the FENZ levy?

The Fire and Emergency NZ Levy is a government charge that helps fund fire and emergency services across New Zealand.
It is separate from the insurer’s premium but Insurers are required to collect the levy on behalf of the government as part of your policy payment.

The levy applies to a range of insurance policies, including commercial property, residential property and certain other insured assets including vehicles.

What is Changing (Effective from 1 July 2026)?
Under the updated regulations:

• Levy rates have been updated
• The way levies are calculated has changed for some policies

Why Your Levy May Increase

The Fire and Emergency NZ (FENZ) levy has always applied to commercial property insurance.

Previously, for some non-residential risks, the amount used to calculate the levy was lower than the full declared replacement value.

From 1 July 2026 the levy will be calculated by using the full declared value of the building (sum insured).
Because of this change properties with lower indemnity values previously used for levy calculations may see the biggest increase.
This does not represent an insurer price increase. The levy is a government charge set under legislation and insurers are required to collect it on behalf of the government.

The table below provides a simplified overview of how the levy rates and framework are changing:

This table is intended as a general guide. The exact levy applied to a policy will depend on the policy structure and insured values.

How the Levy is Calculated (Commercial Property)

Formula
Levy = (Building Sum Insured ÷ 100) x $0.0776

Illustrative Example
If a commercial building is insured for $3,000,000:

$3,000,000 ÷ 100 = $30,000 30,000 x $0.0776 = $2,328
In this example, the annual levy payable would be $2,328 (plus GST) for that building.

Further Information

If you would like to read more about the Fire and Emergency levy changes, official guidance is available from the Department of Internal Affairs: https://www.dia.govt.nz/firelevy

If you would like to understand how these changes may affect your own policies, please contact our team and we will be happy to walk you through it.