What Does This Mean For Kiwi Developers?
For over three decades, the Resource Management Act (RMA) has shaped New Zealand’s environmental and land use policies, governing everything from urban subdivisions to rural activities to infrastructure projects. However, its days are numbered.
In March 2025, the New Zealand government announced its intent to significantly reform the RMA with a new planning framework, signaling a shift for property developers, architects, surveyors, and building professionals across the country. At LG Consulting, we’re committed to helping Kiwi developers navigate this transition. This article dives into what the RMA replacement means for you, breaking down the new legislation, its implications, and actionable steps to stay ahead of the curve.
Why is the RMA Being Replaced?
The RMA, enacted in 1991, was designed to promote sustainable management of New Zealand’s natural and physical resources. Yet, over time, it ballooned into a 913-page behemoth, criticized for its complexity, costliness, and delays. Developers have long voiced frustration over its consenting processes—some projects, like wind farms, have taken up to eight years to gain approval. A 2020 government review highlighted these inefficiencies, noting that the RMA failed to adequately balance environmental protection with enabling development.
The current coalition government, led by Hon Chris Bishop, Minister for RMA Reform, sees the replacement as a chance to “unleash growth” while maintaining environmental safeguards. As reported by Paul Gallagher Legal on March 25, 2025, the new legislation will pivot toward property rights, aiming to cut red tape and streamline approvals. This aligns with the government’s broader economic goals, promising a system that gets decisions made faster without compromising Aotearoa’s natural heritage.
Key Changes in the New Planning Act
So, what’s changing? The government plans to scrap the RMA by the end of 2025, replacing it with two distinct acts: a Planning Act focused on land use and development, and a Natural Environment Act to manage environmental effects. Here’s a breakdown of the key features based on the latest updates:
- Property Rights at the Core: The new framework prioritizes landowners’ rights to develop, restricting objections to cases with clear “material spillover effects” on others’ property or the environment.
- National Standards: Standardized land use zones and development rules will reduce the need for resource consents, replacing the patchwork of regional plans with consistent, nationwide benchmarks.
- Regional Spatial Plans: Each region will craft a single regulatory plan, merging district and regional rules into a simpler, unified framework.
- Faster Consenting: Activities meeting national standards won’t require consents, slashing processing times. For those that do, a “rapid, low-cost” dispute resolution system, potentially a Planning Tribunal, is in the works.
- Stronger Enforcement: A more permissive system will come with stricter monitoring and harsher penalties for non-compliance.
These changes promise to shrink development timelines significantly. Where the RMA often stalled projects with bureaucratic hurdles, the new system aims to prioritize efficiency while upholding Treaty of Waitangi obligations and environmental limits.
Implications for Property Developers
For Kiwi developers, the RMA replacement is a double-edged sword—offering opportunities to accelerate projects but requiring swift adaptation to new rules. Here’s how it impacts you:
Consent Application Process Under New Laws
The shift to national standards means many low-impact projects—like small residential builds or permitted commercial developments—may bypass the resource consent process entirely. For larger projects requiring consents, such as multi-unit housing or industrial sites, the process will be streamlined. 1News reported on March 24, 2025, that the government’s focus on reducing “vexatious objections” will limit challenges from unrelated parties, a common delay under the RMA. However, developers must still navigate regional spatial plans, which will dictate zoning and infrastructure priorities.
Cost Implications for Large-Scale Projects
Cost savings are a headline promise. The Taxpayers’ Union noted on March 23, 2025, that the reforms could save “hundreds of millions” annually by cutting consent volumes and compliance costs. Yet, upfront investments in compliance planning and consultation with Māori (to honor Te Tiriti obligations) may still be necessary, particularly for projects near culturally significant sites.
Real-World Impact
Consider a hypothetical case: under the RMA, a Canterbury developer seeking to subdivide rural land for 50 homes might wait 12 months for land use consents, grappling with environmental assessments and neighbor objections. Under the new act, if the project aligns with national standards and the regional spatial plan, approval could come in weeks—or not be needed at all—saving time and money.
Steps Developers Should Take Now
With the RMA’s repeal slated for late 2025, preparation is key. Here’s how to stay compliant and capitalize on the changes:
- Review Regional Plans: Contact your regional council to understand emerging spatial strategies. These will dictate where and how you can develop.
- Audit Current Projects: Assess existing consents under the RMA. Some may need reapplication or adjustment once the new laws take effect.
- Engage Experts Early: Partner with planning consultants (like LG Consulting) to interpret national standards and streamline applications. Our team can guide you through zoning changes and consent exemptions.
- Consult with Iwi: Build relationships with local Māori groups now to ensure compliance with cultural and environmental considerations baked into the new framework.
Acting proactively ensures you’re not caught off-guard when the legislation lands in Parliament next year.
Future Outlook for NZ’s Development Landscape
Looking ahead, the RMA replacement could transform New Zealand’s urban and rural landscapes. Urban areas like Auckland and Christchurch may see a boom in housing as standardized zones unlock land faster. Rural developers could benefit from clearer rules on land use changes, such as converting farmland to residential or commercial zones.
Faster approvals could attract international investment, while simplified processes might encourage smaller developers to enter the market. However, challenges remain, environmental groups worry about weakened protections, and rural developers may face stricter enforcement if they overstep new limits.
Frequently Asked Questions
Q: When will the new laws take effect?
A: The government aims to pass the legislation by the 2026 election, with implementation likely starting in 2027.
Q: Will existing RMA consents still be valid?
A: Yes, but transitional arrangements will apply. Consult a professional to confirm your consents’ status.
Q: How will this affect small developers?
A: Smaller projects may see the biggest gains, as national standards reduce consenting needs for modest builds.
Q: What about environmental protections?
A: The Natural Environment Act will set quantified limits, balancing development with sustainability.
Partner with LG Consulting for a Smooth Transition
The RMA’s replacement marks a turning point for Kiwi developers, one that promises efficiency but demands readiness. At LG Consulting, we’re here to help you navigate this shift, from decoding new consent rules to optimizing your project pipeline. Reach out today to discuss how we can help.
