The New Zealand government has finalised regulations for insurance levy funding of fire and emergency services from July next year. 

Internal Affairs Minister Brooke van Velden confirmed at the end of last year that the levy will rise by 2.2%, after Fire and Emergency New Zealand earlier held public consultations on a 5.2% increase.

The fire and emergency levy is included on most insurance contracts that cover property, including vehicles, homes and contents, and non-residential property.

“The insurance industry has requested that the regulations be finalised 18 months before coming into effect to give sufficient time to implement the new levy,” Ms van Velden said.

“I am pleased that the government has approved the regulations ... providing confidence to businesses about how the levy will be applied and collected.”

Ms van Velden says she has asked FENZ to deliver savings of $NZ60 million ($54 million) by the end of the three-year levy period, to provide a reserve for significant unexpected costs or levy undercollection.

Changes include a flat $NZ25 ($22.60) fee to vehicle insurance, after the fire service consulted on a $NZ40.12 ($36.25) charge.