NZ FIRE SERVICE LEVY AND YOUR LTC

NZ Fire Service levy and your LTC: The Fire and Emergency levy applies to almost every NZ company that insures property here. (Although dated 2023 we’ve updated this for 2026: The system changed substantially from 1 July 2026, on top of an earlier round of changes in 2024.) This guide covers what the levy actually is, and how it’s currently collected. It also covers the specific situation where the liability to pay it lands on you directly.

30-Second Read

• The levy funds Fire and Emergency New Zealand, and applies to most insurance contracts covering NZ property against fire, plus motor vehicle policies.
• If you’re insured through a NZ-based insurer, the levy is almost always built into your premium automatically. You don’t need to do anything separately.
• If you insure through an overseas insurer with no NZ intermediary involved, the liability to calculate and pay the levy falls on you as the policyholder.
• A major system change took effect from 1 July 2026. Commercial property levies now calculate on the full replacement sum insured, rather than a lower indemnity value. Motor vehicles now attract a flat $25 per year regardless of weight.
• This isn’t specific to LTCs — it applies to any NZ company, or individual, insuring property here. If you hold property through an LTC, the levy obligation sits with the company itself, the same as it would for a standard company.

What Is the Fire and Emergency Levy?

Fire and Emergency New Zealand is funded primarily through a levy charged on insurance contracts covering NZ property against loss or damage from fire. It also applies to most motor vehicle insurance, including third-party-only cover. GST applies on top of the levy itself.

For most policyholders, this is invisible. If you’re insured through a NZ-based insurer, the insurer collects the levy as part of your premium and passes it on to Fire and Emergency directly. You don’t need to do anything.

When the Liability Falls on You Directly

The situation changes if your insurance is placed with an overseas insurer and no NZ-based insurance intermediary is involved in arranging it. In that case, you — the policyholder — become directly liable to calculate the levy yourself. You pay it to Fire and Emergency New Zealand, rather than having it collected through a premium.

Current payment timing: the levy is payable by the 15th day of the third month following the commencement or renewal of the policy. A policy running from 1 July to the following 1 July, for example, would have levy due by 15 October.

This is the scenario most likely to affect a NZ company insuring specific assets overseas. It also covers a director whose company holds property insured through an offshore arrangement without a NZ broker in the middle. If you’ve received correspondence from Fire and Emergency about your company’s insurance arrangements, this is very likely why.

A Major System Change From 1 July 2026

The levy system itself changed substantially from 1 July 2026, following legislation passed back in 2023 that deliberately delayed the new system’s start date to give the insurance industry time to prepare. Key changes:

• Commercial property now has its levy calculated on the full replacement sum insured, rather than a lower indemnity or depreciated value as under the previous system. Depending on the gap between your building’s insured value and its depreciated value, this can mean a real increase. That’s true even though the underlying rate itself has generally reduced.
• Motor vehicles now attract a flat $25 per vehicle per year, regardless of weight. That’s a simplification from the previous weight-based calculation.
• Residential property and contents continue to operate under capped levy limits. The overall impact for most homeowners is smaller than for commercial property owners as a result.

If your company hasn’t reviewed its insurance arrangements since before July 2026, it’s worth checking whether your levy costs have shifted as a result. This matters particularly if you hold commercial property with a meaningful gap between its insured value and its depreciated value.

What to Do If You’ve Received a Letter

If Fire and Emergency has contacted your company directly, the current forms and process are set out on Fire and Emergency’s own levy payments page — this is worth checking directly, since the exact paperwork has changed as part of the 1 July 2026 system update, rather than relying on an older description of the process.

This is one of several routine compliance obligations that come with running a NZ company — see our guide to compliance requirements for LTCs and companies for the fuller picture of what directors need to stay on top of.

Checklist

• ✅ Confirm whether your company’s insurance is arranged through a NZ-based insurer or intermediary, or directly with an overseas insurer
• ✅ If insured overseas with no NZ intermediary, confirm your levy payment deadline — the 15th day of the third month after your policy’s commencement or renewal
• ✅ Check whether your commercial property’s levy has changed under the new full-sum-insured calculation method
• ✅ Review current forms directly on Fire and Emergency’s website rather than relying on older guidance
• ✅ Get in touch with your insurance broker if you’re unsure whether the levy is already included in your premium

Common Questions

Does this only apply to LTCs? No — it applies to any NZ company, and to individuals, insuring property in New Zealand. There’s nothing LTC-specific about the levy itself.

Do I need to do anything if I’m insured through a NZ insurer? Generally no. The levy is collected as part of your premium and passed on to Fire and Emergency automatically.

What changed on 1 July 2026 specifically? The calculation method for commercial property levies moved to full replacement sum insured. Motor vehicle levies became a flat rate, and updated levy rates took effect across the board.

What if I’m not sure whether my insurer is NZ-based? Ask your broker or insurer directly. This determines whether you have any direct obligation to Fire and Emergency at all.

Summary

The Fire and Emergency levy applies to almost every NZ company with insured property. For most, it’s handled automatically through their premium with a NZ-based insurer. Overseas-insured property with no NZ intermediary involved is the exception, where the liability to calculate and pay the levy falls directly on the policyholder. The system changed substantially from 1 July 2026, particularly for commercial property, now calculated on full replacement value rather than a lower indemnity figure. It’s worth checking your current position rather than relying on how things worked before that date.

Talk to EpsomTax.com About Your Compliance Obligations

If you’re unsure whether your company has a direct levy obligation, or want to understand how the 1 July 2026 changes affect your specific insurance arrangements, that’s worth checking properly. Contact us and we can point you in the right direction, alongside your insurance broker.