Prudential Levy consultation

Overview

On behalf of the Minister of Finance, we are seeking feedback on the proposed implementation of a prudential levy. As part of the Government’s Budget 2026 the Minister of Finance announced the Government’s intention to introduce a prudential levy under the Reserve Bank of New Zealand Act 2021 (RBNZ Act).

The consultation paper covers:

• proposing full cost recovery under the levy for all prudential costs
• the sectoral scope of the levy, and
• the method of calculating or ascertaining the amount of the levy paid by individual regulated entities.

Section 296(1) of the RBNZ Act requires the Minister to ensure there has been consultation with representatives of those who are liable to pay a levy or be significantly affected by it, before recommending regulations. Your feedback will help the Government determine whether to recommend regulations, and if so, how these could be implemented.

Consultation materials

Prudential levy consultation paper (PDF, 777KB)

During the consultation period, we are also open to engagement through group webinars or workshops, or through direct bilateral meetings. We look forward to engaging on these proposals.

Anticipated timeline

• Consultation

  August-October 2026
• Early 2027

  Final Cabinet decisions

• June-July 2027

  Regulations made and gazetted

• August 2027

  Levy comes into effect