Driving innovation and accountability in building research funding

This reform aims to ensure the building research system is fit for purpose, transparent, and aligned with the needs of today’s construction sector.

Combining the building and building research levies

Under the changes the building levy and building research levy will be combined into a single levy, with a new levy rate set in 2026. A ring-fenced portion of this combined levy will be used to fund building research. Funding allocation will be managed centrally with input from the sector.

Centrally managed research funding

Managing building research funding centrally will enable better alignment with sector and government priorities, supporting stronger outcomes for industry, government, and building owners.

Ring-fencing funding will provide multi-year stability for long-term projects, while increasing contestable funding will enhance opportunities for universities, industry bodies, and research agencies.

These changes follow a review of the Building Research Levy Act 1969. The review found that improvements could be made to transparency and competition for those in the building research sector.

Under the existing system, the Building Research Association of New Zealand (BRANZ) is the sole recipient of the building research levy. While BRANZ delivers valuable research, the new approach will introduce greater transparency, competition, and accountability to maximise value from research funding.

The changes will also reduce duplication for building consent authorities (BCAs) and save consent applicants approximately $65 per consent.

Key date for the changes

Legislative changes will be introduced in 2026. Transitional arrangements will allow BRANZ to continue operating under current funding levels until the new model is in place.

Further information on these changes for the sector will be available soon.