What the 2026 FENZ levy changes mean for your business.

The line item isn't the whole story.

Most owners will see this through a number first. A slightly different total. A levy line that looks unfamiliar. A vehicle premium that feels off. A property renewal that deserves a second glance.

Fair enough. But the useful question isn't just why did this go up? The better question is what else should I be checking while I'm here?

Renewals have a habit of surfacing things that have been sitting quietly in the background for months. A fleet that has grown. A building value that has drifted. A premises upgrade. More tools. More stock. Bigger contracts. More exposure.

The business moved on. The cover didn't always keep pace.

Where many businesses will feel it first.

For plenty of businesses, vehicles will be the first place the change becomes obvious — whether that's a single ute or a full fleet under a transport insurance programme.

From 1 July 2026, the FENZ levy on all motor vehicle insurance policies moves to a flat $25 per vehicle, regardless of vehicle weight or policy type. That's a significant shift depending on what you're running.

For light vehicles (under 3.5 tonnes), the old rate was $9.53 per vehicle — so the new flat fee represents a moderate increase per unit.

For heavy vehicles (over 3.5 tonnes), the old rate was calculated as a percentage of the sum insured — specifically 0.1195% of the insured value. For fleets carrying high-value heavy assets, the move to a flat $25 per vehicle can represent a very material reduction in levy costs, with the saving scaling directly to how much sum insured sits behind the heavy fleet today.

In plain terms: the Fire & Emergency levy for vehicles is shifting from a value-based charge to a flat per-vehicle charge. That disproportionately benefits high-value heavy fleets, while lighter vehicle fleets will see an increase.

That may not sound dramatic until you multiply it across your specific fleet mix. Which is exactly why it's worth looking at the numbers before renewal lands — not after.

There's also a notable change for businesses running Third Party only policies. FENZ levies now apply to those too, where they didn't before.

That's where a regulatory change becomes a more interesting commercial conversation. Not because the levy is the biggest cost in the world. Because it forces the renewal back under the spotlight.

One detail worth checking: mobile plant equipment. If it meets the vehicle definition and is insured under a commercial motor policy, it attracts the same flat $25 levy. But if it is insured under a plant and equipment or material damage policy, it falls under the property levy rate of 0.0776% of sum insured instead. The classification matters.

Property is where it gets more serious.

Commercial property is where this new change can become much more revealing — especially if you hold cover under property owners insurance or have buildings sitting inside a construction insurance programme.

From 1 July 2026, the general non-residential property levy rate will be 7.76 cents per $100 sum insured, with no cap. The basis for calculating the levy also changes — moving from the indemnity value to the sum insured for contracts covering fire damage.

That sounds technical. It is.

But the practical meaning is simple: if your declared values, reinstatement assumptions or insured figures haven't been reviewed properly in some time, the renewal may make that harder to ignore.

Industry guidance has been blunt about it. Even though the headline rate on commercial property is lower than before, some businesses may still see their levy increase – because it's now being calculated against sum insured rather than the lower indemnity value used in some previous arrangements.

That's the kind of detail that catches people out. On paper, the rate looks better. In practice, the final result may not.

And if that prompts a proper review before claim time, that's useful information to have now.

The Fire & Emergency levy is changing from being calculated on the indemnity value to the full rebuild (sum insured). While the rate actually drops, the bigger base means most clients will still see an increase.

Mixed-use buildings deserve a second look.

If you own or insure a mixed-use property, this deserves even more attention. The treatment of residential and non-residential portions of mixed-use buildings is changing – residential portions levied at the residential rate, non-residential portions at the non-residential rate. For investors, that interacts with landlord insurance on the residential side.

Where the residential share of floor area is less than 50%, owners can elect to provide a valuation that apportions the property value between residential and non-residential parts. The insurer then applies the sum insured using the same apportionment. In some cases, this can produce a lower overall levy than applying the non-residential rate to the full sum insured.

For some, that will be straightforward. For others, it's another reminder that insurance detail gets complicated very quickly when the property no longer fits a simple box.

Which is exactly why these moments are worth reviewing with someone who deals in the detail every day.

The businesses most likely to overlook this are often the busiest.

The owners most at risk here aren't necessarily the careless ones. They're usually the busy ones.

The ones who've grown steadily. Added staff. Added vehicles. Changed premises. Increased stock. Taken on larger jobs. Tightened margins. Kept pushing forward.

The business evolved. The paperwork often lagged behind.

That's why this change is a useful prompt. Not to panic. Not to obsess over one line on the renewal. Just to stop running on autopilot long enough to ask whether the cover still matches the shape of the business today.

The bottom line.

From 1 July 2026, the levy rules change. If your renewal falls on or after that date, treat it as more than paperwork. It's a chance to check whether your vehicles, property values and wider insurance setup still reflect the business you're running today.

Because the real risk isn't simply that a levy line changes. It's that your renewal becomes the first sign your cover has fallen behind your business.

The financial impact of these changes is driven less by the rate itself, and more by the value that rate is applied to — and how your assets are defined and classified in the policy. Getting those details right before renewal is what turns a regulatory change into a genuine commercial advantage.

If your business has grown, changed or taken on more in the past 12 to 24 months, now's a smart time to talk to Marble and review your cover before renewal lands.