A rise in the firefighting levy that comes out of insurance premiums has been reduced for coming years.
The levy increased 12.8% in July this year, and Fire and Emergency NZ was seeking another 5.2Z% rise through to 2029.
However, the government says that has been revised down to 2.2%.
In addition, a flat $40 charge on vehicle insurance FENZ sought, up from just $9.53, has been reduced to $25.
"It is important that Kiwis are not paying more than necessary to ensure FENZ is resourced to maintain high standards of frontline services," she said in a statement today.
The minister has told FENZ to find savings of $60 million by 2029 so it can build up its reserves.
FENZ is 97% funded by levies, which the insurance industry is unhappy about, wanting the Crown to simply fund it from its main pot.
It earlier argued it needed the 12.8% rise because it was "urgent and cannot wait".
"Our operating costs have increased, and we face immediate funding shortfalls," it said in a report in April.
FENZ has many fire stations that need upgrades, seismic or asbestos work, and an ageing fleet of large fire trucks prone to breakdowns.
It earlier forecast its operating costs to rise to $748 million next year, plus nearly $90 million in capital costs. Its operating costs in 2016 were $423 million.
It also has a $75 million Crown loan it has to pay back.
The 12.8% rise has relieved some of the pressure.
In April, van Velden asked FENZ's board for evidence it needed the 5.2% increase; she earlier refused RNZ's request to see related briefings.
