Government Plans Major RMA Overhaul
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- New legislation aims to reduce red tape and boost development across the country
- Two new Acts will focus on land use and environmental protection, replacing the current RMA
- Cabinet estimates show reforms will cut compliance costs by nearly half compared to current system
The Government has confirmed it will replace the Resource Management Act (RMA) with two new laws aimed at boosting development while maintaining environmental protections. Ministers Chris Bishop and Simon Court say the current RMA is outdated, overly complex, and holding back progress.
“The RMA is broken and everyone knows it. It makes it too hard to build the infrastructure and houses New Zealand desperately needs, too hard to use our abundant natural resources, and hasn’t resulted in better management of our natural environment,” said Mr Bishop.
The replacement plan includes a Planning Act, focusing on land use and development, and a Natural Environment Act, aimed at protecting and enhancing the environment. The Government said this approach would reduce red tape, allow more permitted activities, and provide more certainty for developers.
A key feature of the reform is a shift towards property rights. The new system assumes land use is allowed unless it significantly affects others or the environment. This, the Government argues, will unlock development opportunities and make it easier to get projects off the ground.
“Replacing the RMA with new legislation premised on property rights is critical to the government’s mission of growing the economy and lifting living standards for New Zealanders,” Mr Bishop said.
Economic analysis on the proposals from the Expert Advisory Group (EAG) suggests the new system could reduce administrative and compliance costs by 45 percent. In comparison, the previous Labour Government’s proposed changes were estimated to cut costs by just 7 percent.
Other key changes include:
- Standardised zoning to simplify planning rules, compared to the current 1,175 different zones across councils
- Stronger compliance enforcement, with a national regulator replacing current regional council monitoring
- Regional spatial plans, ensuring future urban development and infrastructure is well coordinated
Mr Court said the current planning system has become a barrier to development. “The RMA’s scope is far too broad and allows far too many people to rely on far too many reasons to object and tangle progress in webs of absurd conditions.”
The Government expects to introduce the two new Acts by the end of this year, with a Select Committee process in 2026 and final legislation passed before the next election. This timeline aligns with council planning cycles, ensuring new rules can guide long-term plans beginning in 2027.
Economists say that if the reforms are enacted as planned, they could help ease housing costs by enabling more land supply. However, experts also caution that the benefits may take time to materialise.
The Government has also signalled it will not include Treaty of Waitangi principles in the new laws, though work is underway on how to better use and develop Māori land.
“Common sense ideas like standardised zoning will be a key feature of the new system,” Mr Bishop said. “It will also enhance local decision-making, allowing elected representatives to focus more time on deciding where development should and should not occur.”