A guide to the New Zealand Fire Service Levy

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How is levy paid? We prefer payments by direct credit to the New Zealand Fire Service bank account: New Zealand Fire Service Commission Bank of New Zealand North End Branch – Wellington 02-0536-0062111-00 SWIFT: BKNZNZ22 Payments can be also be made via cheque to: The Revenue Team New Zealand Fire Service PO Box 2133 Wellington 6140 Please ensure that the word ―levy‖ and the period that the payment relates to (i.e. 2010/11) are included in the explanation field. Common errors when calculating and paying levy include – Calculating the levy due based on the premium rather than the Indemnity Value or Sum Insured Not including GST or not calculating GST correctly Not calculating levy in $NZD Paying from offshore and not ensuring bank fees/costs are paid in full by the levy payer All payments of levy that are calculated and paid directly to the New Zealand Fire Service must be accompanied by the appropriate forms as shown in the table in the previous section. The Statutory Declaration must be witnessed by a Justice of the Peace, a notary public, a person enrolled as a barrister and solicitor of the High Court or any other person authorised to witness a Statutory Declaration under the Oaths and Declarations Act 1957. Copies of these forms are downloadable from our website, http://www.fire.org.nz under the levy section. Levy payable on motor vehicles Levy is payable at a flat rate of $6.08 per motor vehicle not exceeding 3.5 tonnes gross laden weight. Definitions of the terms are in the Land Transport Act and Road User Charges Act. Levy on all other ‗vehicles‘ (over 3.5 tonnes gross laden weight) is calculated in the same manner as 'other property'. Levy Manual for Direct Payers 4
Levy payable on residential buildings and personal property Fire Service Levy is payable on all assets insured against the risk of fire, but residential buildings and personal property are subject to a limit. Section 48(6) of the Fire Service Act states that the amount for which the property is insured for the contract of fire insurance shall be— (a) In the case of residential building as defined in section 2(1) of the Earthquake Commission Act 1993, the amount for which that building is insured pursuant to section 18 of that Act: (b) In the case of personal property as defined in section 2(1) of the Earthquake Commission Act 1993, the amount for which that property is insured pursuant to section 20 of that Act: Clarification on the types of buildings that are subject to a limit are in the Earthquake Commission guide at: http://www.eqc.govt.nz/sites/public_files/insurers-guide-september-2012.pdf Levy payable on contract extentions Levy is payable on policy extensions if they increase the sum insured during the policy period. The two most common examples of these types of extensions are contract works and capital additions. All levy payable should be assessed on these types of insurance and it is payable at the inception of the policy and for the period of the insurance. Where the extensions are not fully utilised during the period of insurance, the unused portion of levy may be offset against the levy payable for the current period. Given this may be subject to an audit, appropriate records must be kept. Where the amount of the sum insured under the contract extension represents the estimated completed value of all of the property, that amount shall be used as the indemnity value of that property. For any global policies, the amount shown in the policy shall be used, unless a local (NZ) limit is specified. Contract works policies No variation or discount of levy is allowed for existing completed property that is also insured within a contract works insurance policy, as levy is payable on all contracts of fire insurance. Where work is being undertaken on properties that are subject to limits or exempted, then the amount of levy may be reduced (see calculations below). Where work is being done on exempted assets, it does not automatically make the contract works policy exempt from levy, as the policy would provide fire cover for assets other than what is being built. If the construction insurance continues to apply after the end of the period of construction and/or during any period of maintenance, levy will be calculated on that value without discount for the period of that insurance. Levy Manual for Direct Payers 5
Page 1 and 2: Levy Manual for Direct Payers 1
Page 3: Who pays levy and when is it due? A
Page 7 and 8: Levy payable on all other assets Le
Page 9 and 10: Other items exempt from levy The Fi

A guide to the New Zealand Fire Service Levy

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