Thursday, June 29, 2017

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Changes to New Zealand Fire Service

On 1 July 2017, the New Zealand Fire Service will become the Fire and Emergency New Zealand. Consequently, the levy rate is changing in New Zealand and this will impact our clients with interests in New Zealand.

Changes to levy

The levy provisions of The Fire Service Act 1975 will largely remain in force until at least 1 January 2019, meaning the calculation of levy will remain the same until this time. The following changes should be noted in the interim:

  • Fire Service Levy will be known as Fire Emergency Levy (“FEL”) from 1 July 2017; and
  • The current forms will remain the same, except they will be rebranded from 1 July 2017.

Changes to levy rates

For all insurance contracts dealing with assets insured for fire perils in New Zealand, the rate of levy payable will change for all contracts incepted or renewed on or after 1 July 2017.

The new rates will be:
  • 10.6c per $100 insured with a maximum levy payable of $106 for each residential building;
  • 10.6c per $100 insured to a maximum levy payable of $21.20 for each residential contents;
  • $8.45 per motor vehicle under 3.5T; and
  • 10.6c per $100 insured for all other property.

For example: For a Property Insurance contract with a sum insured of $1,000,000 renewed after 1 July 2017, FEL payable will be $1,060.00+GST.

If you are unclear about these changes or would like more information, please contact James Baxter on   or on  +64 21 307 376

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