The Government has announced a significant reform to the building levy framework, confirming that the Building Research Levy (under the Building Research Levy Act 1969) and the Building Levy (under the Building Act 2004) will be merged into a single, streamlined building levy.
This change removes the long-standing duplication that currently sees consent applicants charged twice for similar purposes.
Under the proposed system, all research funding will come from the combined levy, with a ring-fenced portion dedicated to research. This funding will become contestable and shaped through sector input, allowing industry voices to play a more direct role in identifying and guiding future research priorities.
For property professionals, the changes are expected to provide practical benefits. A single levy should simplify the consenting process for Building Consent Authorities, reduce administrative effort, and save consent applicants approximately $65 per consent. Across multiple consents, these savings and process efficiencies can materially improve project timelines and cost certainty.
More broadly, the reform signals the Government’s intention to streamline and modernise elements of the building system — providing clearer, more predictable funding settings and reducing friction in the consenting pathway. The combined levy structure will be included in the Building Amendment Bill, expected early next year, with passage anticipated by August 2026. The new levy rate will then be confirmed through regulation as part of the 2026 review.
These changes mark a step toward a more efficient, coordinated, and responsive building system — outcomes that directly impact development feasibility, project delivery, and long-term planning across the property sector.
To read the Government’s announcement, please click here.
Author | Sandamali Ambepitiya
Sandamali arrived at Property Council with a Bachelor of Arts and Law, and experience as an advisor with the Employers & Manufacturers Association.
Conscientious and detailed, Sandamali leads our advocacy in the South Island and Wellington regions. She is also leading our work on the reform of the resource management and building systems and sustainability / seismic strengthening.
An excellent listener, Sandamali is in her element when facilitating stakeholders and members to develop our advocacy positions.
