Fire and Emergency New Zealand is consulting on plans to increase levy revenues by 5.2% while changing the way the charge is applied to different insurance policies.

“We are seeking written submissions on our proposal from levy payers, insurance policyholders, their representatives, and any members of the public who may be affected by, or have an interest in, the proposed changes to our levy or any changes to our services,” it said last week.

Changes to the levy, which provides almost all Fire and Emergency’s funding, would apply for the July 1 2026 to June 30 2029 period.

Currently, the service receives 7.3% of the levy revenue from motor vehicle insurance policies, 33.4% from residential property and contents, and 59.3% from non-residential property.

Proposals include increasing the proportion collected from motor policies, given that area represents about 16% of costs, with responses including rescuing people trapped in vehicles and helping other emergency services at accidents.

A consultation paper says the share of revenue collected from residential and personal property policies could be reduced to meet principles of equity and universality.

“Data from the insurance industry shows that between 80% and 90% of residential properties are insured,” it says. “We want to help make sure that levy changes are not a barrier to people taking out insurance, so we also considered affordability.”

The levy for non-residential property, a “wide catch-all category”, could also be lowered, with calculations showing a rising number of commercial properties will be leviable in the future.

The consultation, which closes on May 17, will provide input to the Government’s decision on the final levies. More details are available here.