FENZ levy provisions delayed
05 Apr 2017
The commencement of new Fire Service / FENZ levy provisions in Part 3 of the FENZ Bill has been delayed by six months and will now occur on 1st January 2019. However the 40% levy increase on the 1st July 2017 will go ahead.
The Minister, Peter Dunne, has agreed that Part 3 will commence on 1 Jan 2019 (rather than 1 July 2018 as per the first version of the Bill).
The change to a new basis of levy calculation will commence on that date, and it also means that the levy rates confirmed last week for 2017/18 will actually run for 18 months instead of 12 months.
The next set of rates will be introduced on 1 Jan 2019. These will take account of the changes to the basis of the calculation i.e. to material damage, amount insured and the new set of exemptions.
In advising the changes the Department of Internal Affairs (DIA) say they hope the delayed implementation will allow more time for brokers/insurers to adjust and test systems and notify clients. It will also give FENZ more time to model the new levy rate accurately.
In the meantime DIA have a discussion document out on proposals for FENZ regulations. In particular they are seeking comment on transitional relief and calculation of levy on insurance covering different property types.
IBANZ will be submitting on these issues and is asking members for their thoughts. The closing date for submissions to DIA is 19 April 2017, responses to IBANZ should be made no later than next Thursday, 13th April.