Background

Public consultation on the Fire and Emergency levy for 2026-2029

New Zealanders have been funding their fire services through levies paid on insurance policies since the 1970s.

From 5 April – 17 May 2024 Fire and Emergency New Zealand held a public consultation on proposed levies for the period 1 July 2026 – 30 June 2029.

Museums Aotearoa argued that the current exemption for 'art and collections held by cultural heritage bodies' should continue and be made permanent in legislation.

Position Statement

Museums Aotearoa argued that the current exemption for 'art and collections held by cultural heritage bodies' should continue and be made permanent in legislation.

The level of the proposed levy was highly disproportionate to the potential benefit museums and galleries receive from FENZ due to the high insurance value of their collections.

We estimated an additional cost to the sector at around $6 million per annum, based on insured value and insurance premiums. Insurance for some of our museums and galleries has tripled in recent years and an additional levy increasing in line with values and premiums - would add a burden the sector wouldn’t be able to sustain.

Result

On 8 April 2024, DIA announced that museums and galleries have an exemption from paying levies to Fire and Emergency on the insured value of their collections. The Government announced exemptions that will apply from 1 July 2026, when a redesigned insurance levy commences. The exemption applies to 'art and collections held by cultural heritage bodies'.