The Ministry of Health and Health New Zealand have signed a Memorandum of Understanding (MOU) outlining how alcohol levy funds will be used to reduce alcohol-related harm.
‘This is a formal agreement that will strengthen oversight of alcohol levy spending by providing transparency about what the money is used for,’ says Director-General of Health, Audrey Sonerson.
The agreement aims to raise awareness about the harm alcohol can cause, encourage safer drinking habits, and strengthen support for people and communities. It clearly outlines how the money should be allocated, ensuring they are directed toward evidence-based initiatives, including:
- community and national awareness of alcohol harm driving a societal shift in attitudes and behaviors toward alcohol consumption
- national support for people and communities
- increasing community participation in alcohol harm prevention
- improving evidence around alcohol harm reductions approaches.
Some of this funding will support the new Fetal Alcohol Spectrum Disorder (FASD) Action Plan. Key initiatives include a national prevention campaign, better support for people living with FASD and their families, training to help health professionals recognise and respond effectively to FASD.
The alcohol levy is collected from alcohol produced or imported for sale in New Zealand. It helps address the health and social harm caused by alcohol. Funding is projected to reach $16.6 million in 2025–26, with at least $14 million allocated to Health New Zealand for related initiatives.
Alcohol harm has been estimated to cost New Zealand $9.1 billion per year. Money raised through the levy will be used to reduce alcohol harm for families, communities, and society.
The MOU was developed in response to the 2024 Independent Review of the Alcohol Levy. The review highlighted the need for greater transparency and accountability in how levy funds are allocated and spent.
See Memorandum of Understanding between the Ministry of Health and Health New Zealand for Alcohol Levy funding for more information.
