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Driving innovation and accountability in building research funding

Posted: 2 July 2026

View of Wellington Central Business District
The Government has announced a major reform of how building research is funded in New Zealand, including repealing the outdated Building Research Levy Act 1969 and introducing a modern, transparent, and competitive funding model.

These changes integrate the levies into a single, more streamlined system under the Building Act, with ring-fencing of the research funding to ensure long-term stability.  

These changes aim 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. A ring-fenced portion of this combined levy will be used to fund building research. 

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.

Contestable funding will remain in place. A new research strategy and funding framework will be developed with input from the sector to guide investment decisions for this funding. Over time, this is expected to drive more innovation, improve value for money, and ensure building research better supports housing supply, related infrastructure delivery, and building performance outcomes.

Contestable funding will enhance opportunities for universities, industry bodies, and research agencies.

The ongoing role of the Building Research Association of New Zealand (BRANZ).

Under the existing system, the Building Research Association of New Zealand (BRANZ) is the sole recipient of the building research levy.  BRANZ will continue to play an important role in the system and remain an independent organisation.

The proposed changes will increase parliamentary oversight of levy expenditure, strengthening scrutiny transparency and accountability for how levy payer funds are used.

Transitional funding arrangements with BRANZ will support continuity while the new approach is established.

This work is being progressed through the Building Amendment Bill.  

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

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This information is published by the Ministry of Business, Innovation and Employment’s Chief Executive. It is a general guide only and, if used, does not relieve any person of the obligation to consider any matter to which the information relates according to the circumstances of the particular case. Expert advice may be required in specific circumstances. Where this information relates to assisting people: