The Department of Internal Affairs (DIA) has set out the timing of the remaining key decisions relating to the statutory regime for the Fire and Emergency New Zealand (FENZ) levy.
The Fire and Emergency New Zealand Act 2017 received Royal assent on 11 May 2017. The levy provisions in Part 3 of the Act will come into force on 1 January 2019.
In late July 2017, the Minister of Internal Affairs will seek Cabinet approval of policy decisions relating to regulations for:
DIA anticipate being able to share these Cabinet decisions with IBANZ by 4 August 2017. The Cabinet decisions will set out the substance of the new policy and should allow insurers and brokers to begin to adapt business processes and systems.
Following Cabinet policy decisions, regulations will drafted. The draft regulations will not be considered until Cabinet meets following the general election. DIA say at this stage it is difficult to give a firm date for when these will be approved, they hope it will be before year end. Once these regulations are confirmed, the statutory framework for the levy will be in place.
Consultation on the rates of levy to apply from 1 January 2019, led by Fire and Emergency New Zealand, will follow in the first half of 2018. We anticipate Cabinet consideration of the levy rates to take place in mid-2018.
DIA appreciate that these dates present a challenge for the insurance sector in gearing up to implement the new regime from 1 January 2019 however they confirm a commitment to supporting the sector through this process.