Published: 2 March 2026
FENZ levy changes: What businesses need to know from 1 July 2026
From 1 July 2026, the way the Fire and Emergency New Zealand (FENZ) levy is calculated is expected to change for many commercial insurance policies. These updates are part of new legislation and are designed to modernise and clarify the levy system, ensuring fairness across different asset types.
- Commercial property: The levy is proposed to be based on the sum insured shown on the policy schedule (rather than indemnity value). This may result in differences in levy charges depending on current insurable values.
- Motor vehicles: The levy moves to a flat $25 per vehicle (replaces the previous structure, based around gross vehicle weight).
- Contract Works: The levy applies to the full sum insured, but at 50% of the non-residential rate, which may reduce costs depending on project size.
- Mixed-use buildings: New rules apply, and buildings that are less than 50% residential may require a registered valuer’s report to apportion the levy.
- Newly included assets: Aircraft, forests, and livestock are expected to attract a levy.
Your levy could increase or decrease depending on your assets and sums insured. Policies that start before 1 July 2026 will continue under the current rules until they renew.
An updated draft FENZ Levy Guide was released in December 2025, with further guidance likely as the levy regulations are operationalised and insurers finalise implementation ahead of 1 July 2026.
We’ll be emailing you later this month with a clearer breakdown of what these changes may mean for your business, including what to look out for ahead of renewal.
How Rothbury can help
Your Rothbury broker can help you prepare for these changes by:
Determining whether your current sums insured or valuations need to be reviewed.
Explaining the potential impact on upcoming renewals, including budgeting considerations.
Navigating mixed-use building treatment and fleet insurance considerations, where levy calculation can be more complex.
This guide provides general information only and does not constitute financial or legal advice. Please consult your broker or professional advisor for guidance specific to your business.