20 November 2025
Cabinet’s proposal to remove the Building Research Levy Act marks a significant change for New Zealand’s building and construction sector.
We share the Government’s goal of modernising funding for building research and agree that greater clarity on levy collection is needed. However, BRANZ has concerns about what the implications of the changes – in their current form – could mean for long-term, independent building research.
We believe there is an opportunity to simplify the system, while still protecting targeted funding that provides certainty and drives innovation for the whole industry.
We support competition
The Government’s proposal on making funding competitive is important. Contestability adds value. That is why BRANZ already invests millions each year with other organisations on a contestable basis. These investments are determined by industry and its priorities, not short-term cycles.
Our Research Investment Advisory Group ensures Levy funding decisions are made by the sector, for the sector, to drive change where it’s needed most.
But core research capability can’t be lost
At the same time, it will be essential to keep a level of stable, sector-led investment to maintain and build the core research capability that has been built up in New Zealand over almost 60 years.
What has been proposed potentially puts this at risk. We are keen to work with Government on how it designs contestable funding, so we avoid losing the hard-won expertise that the industry has built over time.
Led by the sector
The Building Research Levy Act was originally established to address market failures. It was conceived because the sector saw the critical need for independent public-good research. For nearly 60 years, the Act has driven innovations that make homes safer, warmer, and more affordable.
This research has consistently been guided by industry priorities. Builders, architects, and other sector representatives identify the areas of greatest need—ensuring funding is spent on issues that truly matter.
With the proposal to shift research funding under the Building Act, it will be important that the focus of the research is not narrowed to building compliance, and continues to drive the innovation the sector needs.
Our commitment to working with Government to get the best outcome for industry
There is still a long way to go before any proposals become law. We are seeking clarity on how research funding will be allocated under any proposed new system and what this means for the future of the building and construction sector.
We are committed to working collaboratively with Government to address our concerns over the coming months and keep the industry’s voice at the centre of funding decisions and to protect long-term certainty in investment in building research.
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