How Fire and Emergency is funded

Fire and Emergency is mainly funded by the Fire and Emergency Levy. The levy comes from insurance taken out on property that is insured against the risk of fire. The Levy provides around 95 percent of funding for our operations and is designed to ensure New Zealand has a modern, fit for purpose, and well-funded fire service.

Some items that attract levy:

• Homes
• Contents
• Motor Vehicles
• Plant & Equipment
• Stock
• Boats (when they are out of the water)
• Buildings
• Buildings under construction

How does it work?

The Fire and Emergency Levy is payable by anyone who insures property against the risk of fire. E.g. when people insure their house or contents, a portion of that insurance bill goes to pay for Fire and Emergency. Responsibility for calculating and making payment of levy depends on how the insurance cover has been arranged.

• If a New Zealand-based insurer is involved in the policy, the levy is payable by the insurer.
• If a New Zealand-based broker is involved, the levy is payable by the broker.
• In all other circumstances, the levy is payable directly to Fire and Emergency New Zealand by the insured.

The levy rate

The levy is payable on the sum insured and indemnity value of insurance contracts against the risk of fire when assets in New Zealand are covered. The levy rate is currently 10.6c per $100 sum insured. 

There are maximum limits on some items, meaning most households will pay approximately $150 a year in levy:

• Residential houses- maximum of $106
• Residential contents- maximum of $21.20
• Motor vehicles (under 3.5T) $8.45 each

Allocation of the levy

As we are a national organisation that assess needs and resourcing across all New Zealand, we tailor our funding and resourcing based on community need.

Many businesses will insure assets and locations under one insurance policy. The information we receive from insurers and brokers doesn’t identify individual payers where levy paid is less than $1,000, and they do not provide any location data.

Funding review

Levy Sections of the Fire and Emergency Act are yet to be legislated as the Department of Internal Affairs are currently reviewing the levy funding model. Due to COVID 19 pandemic and the timing of the upcoming election, this funding review is currently on hold.

Existing levy provisions under the Fire Service Act 1975 will continue to apply until 1 July 2024, unless repealed earlier.

More information

If you’re interested in more detailed information about how the levy works, visit fireandemergency.nz/about-us/about-the-levy/(external link)