Internal Affairs Minister Peter Dunne has said the changes are the biggest reform of the fire service since 1947, when the Ballantyne's store fire in Christchurch led to a sector overhaul.
The reforms promise greater investment in volunteer firefighting, which made up 80 per cent of the sector.
The main funding source - levies on property owners who take out insurance - will not change.
However, while the current fire service levy is based on insurance for fire damage, the new legislation proposes that the levy will be based on insurance covering physical damage to, or loss of, property.
This change will come into effect from July 1, 2018.
The Government says the change reflects the fact that the fire service responds to a growing number of non-fire incidents, such as flooding. It also makes it harder for some levy payers to avoid contributions.
New Zealand has about 500 museums ranging from Te Papa to volunteer museums and historic houses.
Frawley said museums had no objection to paying the levy based on normal commercial assets, but there were problems when the levy took into account the insurance valuation of collection items.
He submitted there should be some form of waiver or cap on the portion of levy based on collection items.