Helping you prepare for Fire Service Levy increases

For more than 40 years, the Fire Service Levy has been the main source of funding for New Zealand's 14,000 firefighters and the vital work they do protecting life and property across the county.

The Fire Service Levy is charged on various insurance policies including home and contents, motor vehicle and business assets cover.  It is basically a form of tax, paid by insurance customers and collected by insurers on behalf of the Fire Service Commission.

The Government has announced reforms for the country's fire services at a cost of $303 million over four years and the levy is increasing.

Summary of the changes

Levy rate
From 1 July 2017, the levy will increase by almost 40% for all individuals and companies who have:

  • Commercial property insurance
  • Residential insurance
  • Rural insurance
  • Motor vehicle insurance
  • Contract Works insurance
  • Pleasure craft insurance

Levy basis
From 1 January 2019 the levy will change and be based on the total sum insured rather than the indemnity value.

 

Helping you prepare

One of the issues of the levy system is that while the fire service benefits everyone, only people with insurance policies that cover fire are paying.  Common opinion from business organisations, insurance customers and those in the insurance industry is that the levy or tax should be paid more equitably by everyone who benefits from the Fire Service. 

Regardless of this - the changes are coming and we want to help you be prepared. 

Our brokers are in touch with our clients to help them understand the impact on their insurance costs.  You can also use the infographic below to help you calculate your Levy increase.

Infographic - Calculating Your Levy Increase

 

If you'd like more information or to talk to a broker please get in touch.

There is also information from NZ Government at http://www.firelevy.co.nz/


Guy Worsley

About the Author

Name: Guy Worsley        

I am a Commercial Broker at Rothbury Auckland. My 18 years experience both in New Zealand and international markets coupled with my high service standards means that I can help clients navigate their way through the complicated insurance…
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I am a Commercial Broker at Rothbury Auckland. My 18 years experience both in New Zealand and international markets coupled with my high service standards means that I can help clients navigate their way through the complicated insurance landscape.

My clients come first. It’s vital to spend time understanding my clients’ business before I provide advice. This advice is assured as I have wide knowledge and experience of liability, professional risks, property motor and marine insurance.

Plus, I am proud of my proven ability to negotiate win : win claim solutions and advise on technical insurance matters.

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Disclaimer: The articles published on this blog are designed to provide general information and do not take into account any individual’s particular circumstances. We recommend that you obtain professional advice on your requirements before making any decision about a financial product.

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