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Fire and Emergency New Zealand Act 2017

Levy - Regulations relating to levy

142: Procedure for levy regulations

You could also call this:

"How the government decides how much to charge for fire and emergency services"

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The Minister has to estimate how much money Fire and Emergency New Zealand (FENZ) will need for a certain period. You need to know that FENZ's net costs include what it spends on doing its job, minus any money it gets from other sources. The Minister must then decide how much of FENZ's net costs will be paid by levies. The Minister has to think about several things when making this decision, including how many cars there are, how much property is insured, and how many people are exempt from paying the levy. You should consider that the Minister also thinks about whether FENZ got more or less money than it needed in the past. The Minister wants to keep the levy rates stable in the long term. The Minister will then recommend making rules to recover the money FENZ needs, and may change these rules if FENZ's actual costs are very different from the estimate. The Minister must talk to people who will be affected by any changes before making them. The Minister recommends the making of regulations under section 141 to recover FENZ's net costs.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM6888398.

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Part 3Levy
Regulations relating to levy

142Procedure for levy regulations

  1. The Minister must, in at least every third financial year, estimate the amount of FENZ’s net costs for an upcoming period specified by the Minister (the period).

  2. For the purposes of subsection (1), FENZ’s net costs in a period are—

  3. its estimated direct and indirect costs of performing functions and duties and exercising powers under this Act, regulations made under this Act, or any other enactment that will arise in the period; less
    1. any estimated income that FENZ will receive in the period from any source other than the levy.

      1. The Minister must then determine the portion of FENZ’s net costs for the period that are to be met by levies.

      2. In making a determination, the Minister must take into account the following (in addition to the purpose of this Part):

      3. an estimate of the total number of motor vehicles in respect of which the levy is payable and the likelihood of any change in that number:
        1. an estimate of the total sum insured for property insured under contracts of fire insurance and the likelihood of any change in that amount:
          1. an estimate of the total amount of exemptions and waivers from the payment of the levy that are expected to apply in relation to the period:
            1. any amount by which actual levy income received in a preceding period exceeded FENZ’s actual net costs in a preceding period:
              1. any amount by which actual levy income received in a preceding period was less than FENZ’s actual net costs in a preceding period:
                1. the benefit of maintaining the stability of each rate of the levy in the long term.

                  1. The Minister must then recommend the making of regulations under section 141 to recover, in each year of the period, the annual portion of FENZ’s net costs for the period that the Minister has determined are to be met by levies.

                  2. The Minister may recommend the amendment of the regulations in the period to which they apply if the Minister is satisfied that—

                  3. actual net costs in the period are likely to vary significantly from the estimate of net costs under subsection (2) on which the regulations were based; and
                    1. the persons likely to be substantially affected by the amendment, or their representatives, have been consulted.

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                      Notes
                      • Section 142(1): amended, on , by section 6(1) of the Fire and Emergency New Zealand (Levy) Amendment Act 2019 (2019 No 16).
                      • Section 142(4): replaced, on , by section 6(2) of the Fire and Emergency New Zealand (Levy) Amendment Act 2019 (2019 No 16).
                      • Section 142(4)(b): replaced, on , by section 14 of the Fire and Emergency New Zealand (Levy) Amendment Act 2023 (2023 No 15).
                      • Section 142(5): replaced, on , by section 6(2) of the Fire and Emergency New Zealand (Levy) Amendment Act 2019 (2019 No 16).