meta_id 3191094

On May 28, 2026, the Reserve Bank of New Zealand (RBNZ) launched a consultation on a proposed prudential levy under the Reserve Bank of New Zealand Act 2021 (RBNZ Act). The Government announced its intention to introduce the levy as part of Budget 2026, with the Minister of Finance requesting the RBNZ to conduct the consultation on the Minister's behalf. Section 296(1) of the RBNZ Act enables the Government to introduce a levy to cover the costs of the RBNZ in performing or exercising its functions or powers under prudential legislation. The consultation will address three key areas: the portion of costs that should be met by levies (full or partial cost recovery); the sectoral scope of the levies; and the method of calculating or ascertaining the amount of the levy paid by individual regulated entities. The levy will apply to entities regulated under prudential legislation and will represent a shift toward industry funding of regulatory costs. This development is significant for New Zealand's regulated financial sector, as it will establish a new funding mechanism for prudential regulation and supervision activities. The consultation period runs from late July to October 2026. Following this period, the RBNZ will analyse feedback and present recommendations to Cabinet for final decisions in early 2027. Regulations will be made and gazetted between June and July 2027, with the levy coming into effect in August 2027. Regulated entities and industry participants should prepare for engagement with the RBNZ during the consultation phase and monitor developments regarding the levy's design and implementation.