Published: 22 April 2026
Fire and Emergency New Zealand (FENZ) levy changes from 1 July 2026
From 1 July 2026, the way the Fire and Emergency New Zealand (FENZ) levy is calculated will change for many insurance policies.
The FENZ levy is a government‑set levy that helps fund Fire and Emergency New Zealand’s services. It is separate from the insurance premium and is collected through insurance policies on FENZ’s behalf - it is not set by insurers or brokers.
When do the changes apply?
• The new levy rules apply to policies that start (are entered into) or renew on or after 1 July 2026.
• Policies already in place before this date continue under current levy rules until renewal.
• You don’t need to do anything right now.
The sections below outline the main levy changes affecting households and businesses. Actual levy amounts depend on the policies you have. If you’re unsure which applies to you, your Rothbury broker can help.
All levy amounts and rates shown are exclusive of GST. GST will be added to the levy when your insurance policy is billed.
What’s changing for households from 1 July 2026
| Insurance type | Current levy | New levy from 1 July 2026 | What this means for most households |
|---|---|---|---|
| Motor vehicles under 3.5t | Current levy: $9.53 per vehicle per year | New levy from 1 July 2026:
$25.00 per vehicle per year (Applies to all insured motor vehicles, including trailers specified on your policy and vehicles insured for third‑party‑only cover) | Increase for most private vehicles |
| Home (residential building) | Current levy: Maximum of $119.50 per year | New levy from 1 July 2026: Maximum of $107.40 per year | Small decrease for most homeowners |
| Contents (household property) | Current levy: Maximum of $23.90 per year | New levy from 1 July 2026: Maximum of $21.48 per year | Small decrease for most households |
Household example (illustrative only)
This example shows how different household policies may be affected differently by the levy changes.
| Insured portfolio | Sum insured | Current levy | Levy from 1 July | Change |
|---|---|---|---|---|
| Residential property | Sum insured: $1,200,000 | Current levy: $119.50 | Levy from 1 July: $107.40 | Decrease: ▼ |
| Domestic contents | Sum insured: $100,000 | Current levy: $23.90 | Levy from 1 July: $21.48 | Decrease: ▼ |
| Single motor vehicle | Sum insured: $35,000 | Current levy: $9.53 | Levy from 1 July: $25.00 | Increase: ▲ |
What’s changing for businesses from 1 July 2026
| Insurance type | What’s changing | What this means for many businesses |
|---|---|---|
| Motor vehicles | What’s changing: Levy moves to a flat $25.00 per insured motor vehicle per year (including trailers specified on your policy and vehicles insured for third‑party‑only cover). | What this means for many businesses: This may increase costs for light vehicles and reduce costs for heavier fleets. |
| Commercial / non‑residential property | What’s changing: Levy is now calculated using the sum insured shown on the policy, rather than indemnity or depreciated values. | What this means for many businesses: Impact will vary, costs can increase or decrease depending on insured values. |
| Contract works | What’s changing: Levy is now calculated using the sum insured shown on the policy with a lower levy rate applicable. | What this means for many businesses: Levy will vary dependent on the project stage and policy structure. |
| Aircraft | What’s changing: Levy now applies to insured aircraft used domestically that are not scheduled for international routes. | This is a new cost. |
| Forests and livestock | What’s changing: Levy now applies to insured forests and livestock. | This is a new cost. |
How the levy is calculated for business insurance
- Motor Vehicles:
- Currently vehicles under 3.5t have a flat rate of $9.53 applied per vehicle with heavy vehicles over 3.5t levied at a rate of 11.95c per $100 applied to the sum insured.
- From 1 July 2026 all vehicles have a flat rate of $25 applied per vehicle.
This will result in the levy cost on light vehicles increasing and a significant reduction in the levy charged on heavy fleet vehicles.
- Currently vehicles under 3.5t have a flat rate of $9.53 applied per vehicle with heavy vehicles over 3.5t levied at a rate of 11.95c per $100 applied to the sum insured.
Fleet examples (illustrative only)
Fleet‑level impacts will depend on the mix of light and heavy vehicles insured.
| Insured portfolio | Description | Sum insured | Current levy | Levy from 1 July 2026 | Change |
|---|---|---|---|---|---|
| Light fleet (under 3.5t) | Description: 30 utes | Sum insured: $900,000 | Current levy: $285.90 | Levy from 1 July 2026: $750.00 | Change: ▲ |
| Heavy fleet (over 3.5t) | Description: 2 units | Sum insured: $400,000 | Current levy: $478.00 | Levy from 1 July 2026: $50.00 | Change: ▼ |
- Commercial property:
- Currently: 11.95c per $100 of indemnity value (no maximum).
- From 1 July 2026: the levy changes from being calculated on the indemnity value (the depreciated replacement value) of a property to being calculated on the sum insured shown on the policy schedule.
To support this rule change FENZ have reduced the applicable rate down to 7.76c per $100 sum insured which is 65% of the previous rate.
- Currently: 11.95c per $100 of indemnity value (no maximum).
- Contract works:
- Currently the levy is charged on the build‑up of the sum insured required under the contract, after deductions relating to any allowable exemptions at a rate of 11.95c per $100 sum insured (no maximum).
- From 1 July 2026: the levy rate reduces to 3.88c per $100 sum insured and will be charged on the sum insured where it represents the completed value of works. The actual levy charged will be dependent on how the policy is structured, any exemptions that may apply and the duration of the contract works.
- Currently the levy is charged on the build‑up of the sum insured required under the contract, after deductions relating to any allowable exemptions at a rate of 11.95c per $100 sum insured (no maximum).
- Residential contract works: If a home is being built and insured under a contract works policy, the levy is applied under the contract works levy rules, rather than standard home insurance rules, regardless of whether the completed building will be residential.
- Aircraft: New levy of 7.76c per $100 of sum insured (maximum of $77.60 applies per aircraft on domestic routes).
- Forests and livestock: 1.94c per $100 of sum insured (no maximum). The actual outcomes depend on policy structure, and insured values.
Other business situations to be aware of
This scenario is affected by the levy changes and depends on how a property is classified, rather than applying a standard rate.
Insurance type: Mixed‑use buildings (residential + commercial)
What to know: The levy is based on how the building is mainly used (residential or commercial), determined by the majority of the occupied floor area.
If 50% or more of the building is residential, the residential levy rate of 10.74c for every $100 sum insured and per‑dwelling cap of $107.40 will apply.
If less than 50% is residential, the full commercial levy rate of 7.76c for every $100 sum insured applies with no cap.
Owners can now provide a registered valuation to accurately split residential and commercial sums insured, supporting a split calculation to reduce the impact of the levy.
Frequently asked questions
What is "sum insured"?
It is the maximum value shown on your policy schedule that would be paid in a total loss (before considering certain extensions or sub‑limits).
Why might my levy increase on my commercial property even though the levy rate has reduced?
Previously the levy was calculated on the indemnity value (the depreciated replacement value) of a property, from 1 July 2026, this changes to being calculated on the sum insured.
FENZ have reduced the applicable rate down to 7.76c per $100 sum insured, which is 65% of the previous rate.
Although the levy rate has reduced it is possible that the difference between the previous indemnity value and the current sum insured will result in an increase in the levy due.
Will these changes affect what I pay?
The levy is one component collected through your insurance package cost. As levy rules change, the levy portion you pay may increase or decrease depending on the policies you have.
Do I need to do anything now?
No. The changes apply from 1 July 2026 for policies that start or renew on or after that date. Your Rothbury broker will guide you at renewal.
What happens if I make a change to my policy before my next renewal?
If you make a change that results in a new policy being issued or your policy recommencing on or after 1 July 2026, the new levy rules may apply from that date.
Does the levy apply to all vehicles, such as tractors, trailers or caravans?
The levy applies to insured motor vehicles, including those insured for third-party-only cover. When a trailer is specified on your policy, it is generally treated as a motor vehicle under the Act and will attract a levy - even if you may not consider it a motor vehicle.
If the levy increases the amount I need to pay, what support is available to help manage this?
To help manage the cost of your insurance, your Rothbury broker can discuss options such as reviewing your cover or spreading payments through Rothbury Instalment Services using regular instalments.
Talk to us
If you have questions about how the levy changes apply to you or your business, please contact your Rothbury broker.
This information is general in nature and does not constitute financial, legal or tax advice. Please speak with your Rothbury broker for guidance specific to your circumstances.