The New Zealand Government has launched a review into the funding system for Fire and Emergency New Zealand (FENZ), examining whether the current insurance levy model remains suitable for the organisation’s expanding responsibilities.
Internal Affairs Minister Brooke van Velden has asked the Department of Internal Affairs to assess whether alternative funding approaches could provide a fairer and more sustainable way to support emergency services.
Currently, around 95% of FENZ funding comes from levies collected through property insurance policies that cover fire risks. The levy system was introduced in 1975 and has continued despite major changes in the range of services provided by Fire and Emergency New Zealand.
Over time, FENZ’s responsibilities have expanded beyond traditional firefighting. The organisation now responds to medical emergencies, maritime incidents, severe weather events and other disasters, raising questions about whether an insurance-based funding approach reflects the full scope of its work.
Recent data shows that between July 2025 and March 2026, only 59% of incidents attended by FENZ, including false alarms, were fire-related. This has increased discussion around whether the existing levy structure is still the most effective option.
The review will also consider the issue of free-riding, where some property owners do not hold insurance but may still benefit from emergency services funded through insurance-based contributions.
The Department of Internal Affairs will consult with relevant stakeholders to examine challenges within the current system and explore possible alternatives. The focus will be on creating a reliable, practical and future-ready funding model for emergency services.
The review will not change the new levy rates already set for the next three years from July 2026. Instead, it will provide information that could support future decisions about funding policies and legislative settings for Fire and Emergency New Zealand.
