Fire and Emergency Levy
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'.
Decision Document Excerpt
-Consultation in 2022 indicated that not-for-profit cultural heritage bodies tasked with preserving art and collection items (such as museums and galleries) face extremely high insurance costs. Applying the levy to insured collection items would disproportionately impact these institutions.
-Although this property benefits from a Fire and Emergency response, the levy payer is not necessarily the beneficiary. Cultural heritage bodies that are not-for-profit organisations often preserve collection items owned by other parties, like a museum entrusted with taonga on behalf of an iwi, or a public gallery exhibiting an international art collection.
-This proposed exemption is specific in scope. For instance, cultural heritage bodies would still pay levy on the buildings housing these art and collection items. Furthermore, art and collection items covered by this exemption should be held by non-profit bodies such as a museum, archive or gallery for the purpose of public education, conservation or exhibition.
Document Links
Cabinet Paper Decision Document 03 April 2024
