Overhauling of the RMA: Take a look at the New Planning System

The Government introduced two laws – the Planning Bill and the Natural Environment Bill to replace the Resource Management Act (RMA). Broadly, these Bills represent the most significant overhaul of New Zealand’s planning and environmental management system. The reforms are expected to be permanent, with durable change as there is bipartisan support for both Bills.

From a development perspective, the reforms are major improvements for the RMA system. The system is designed to be nationally consistent, predictable, and more enabling of land use. If implemented, we expect these changes will lead to faster economic growth, higher productivity and less compliance costs for the property sector.

A new development framework with clear environmental limits

The new RMA system separates development and environmental protection.

The Planning Bill establishes a framework for focused on enabling land use, development, and infrastructure. Conversely, the Natural Environment Bill establishes an environmental management framework with hard and binding environmental limits for air, water, land, soils, and biodiversity.

Development is encouraged within those environmental limits. Property Council welcomes the Bills’ emphasis on objective standards, criteria, and measurable outcomes. These changes will reduce subjective interpretation and improve consistency across the planning system.

A “funnel” system binding the regime

A key improvement is the new system architecture, described as a “funnel” that streams downwards. The top instruments include:

The statutory Goals included in both Bills;
National Policy Direction (NPD) set by the Minister responsible; and
National Standards that translate policy into rules.

These instruments bind everything – and every stakeholder in the new system such as councils, plans, consenting and permit decisions. Conversely, under the existing RMA, councils and stakeholders often re-interpreted national direction through local plans which led to inconsistent outcomes, delays to development and investment uncertainty.

Under the new system, there is far less scope for subjective interpretation at the local level. Therefore, councils cannot relitigate any direction made in the instruments that sit higher up in the system and will be legally required to implement national direction.

For these reasons, Property Council will continue to push for clear, robust, and transparent national policy direction and standards, alongside strong accountability mechanisms to ensure all decision-makers are held to account for how the system operates in practice.

More permitted consents, faster resolution mechanisms and strong property rights

A central feature of the new system is a shift toward permitted development wherever possible, reducing the need for consents and litigation.

The framework reduces the types of effects that need regulation, raises the bar for notifications and limits involvement to those directly affected. Crucially, it moves debate to the plan-making stage, avoiding repeated arguments over policy at individual consent hearings.

If a proposal follows the relevant plan and stays within environmental limits, it will go ahead without needing a resource consent. This is a clear shift from the RMA and should shorten timeframes, cut costs, and lower risks for development.

To support this, the system creates a Planning Tribunal. The Tribunal will quickly resolve lower-level disputes, handle process issues regarding consent approval processes. The new institution should make decisions more consistent and cut the cost and delay of planning disputes, while keeping the Environment Court for the most complex or high-stakes cases.

The Planning Bill also brings in a new framework for regulatory relief, strengthening property rights. When planning controls, such as heritage protections or limits on significant sites, have major effects on how land is utilised, councils must offer financial relief. Types of compensation range from rate relief, bonus development rights, fee waivers, and land swaps.

What happens next?

Public consultation on the new resource management system is open until 13 February, with both the Planning Bill and Natural Environment Bill expected to pass later this year.

Following Royal Assent, a transitional period will begin approximately one month later. During this period, the RMA will continue to govern consenting decisions, while the new system is established in the background, including the institutional setup of national direction, standards, and regional planning processes under the new “funnel” architecture.

The new planning and environmental management system is expected to fully come into force from 2029.

To find out more detail and give your feedback, please contact Leonard to join our Resource Management Reform Taskforce.

Author | Leonard Hong

An accomplished economist and public policy professional, Leonard brings a global perspective and analytical edge to Property Council New Zealand’s advocacy team.

With a background spanning macroeconomics, international political economy, and urban development policy, Leonard’s career has taken him from the New Zealand Parliament to leading think tanks and industry bodies across the Asia-Pacific. Before joining Property Council, he was a Policy Advisor with the Property Council of Australia in Perth, where he led research and advocacy on urban growth, infrastructure, industrial and capital market settings. His earlier experience includes roles with The New Zealand Initiative, where he co-authored nationally recognised economic reports, and as an advisor to Hon. Andrew Bayly MP, former Minister of Commerce and Consumer Affairs.

Leonard holds a Master’s degree in International Political Economy from Nanyang Technological University, Singapore, graduating with First Class Honours and dual degrees in Commerce and Arts from the University of Auckland. A recipient of both the Prime Minister’s Scholarship for Asia and the Prime Minister’s Scholarship for Latin America, Leonard is also a member of the Asia New Zealand Foundation’s Leadership Network and an Adjunct Associate with Principal Economics.

Passionate about evidence-based policy and the intersection of economics, cities, and governance, Leonard’s work supports Property Council’s mission to create thriving, well-designed communities across Aotearoa New Zealand.

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