Mega-Overhaul Unveiled: Government Replaces RMA with Sweeping New Planning System
WELLINGTON – December 9, 2025 — The Government has formally unveiled its long-awaited and radical overhaul of New Zealand’s complex planning system, confirming plans to replace the controversial Resource Management Act (RMA) of 1991. The replacement, which ministers have labelled a “once-in-a-generation opportunity,” is set to fundamentally change how all buildings, infrastructure, and land use are regulated, with the goal of becoming fully operational by 2029.
The reform package, a key promise of the current National-led coalition government, introduces two new Bills: the Planning Bill, focused on enabling development and regulating land use, and the Natural Environment Bill, dedicated to protecting the environment and managing natural resources.
The Promise of Speed and Savings
The primary drivers behind the reform are dramatically reducing bureaucracy, lowering costs, and accelerating housing and infrastructure development. The Government has projected massive economic benefits from the change:
- Consent Reduction: Officials estimate that up to 46% of existing consent and permit applications—equating to between 15,000 and 22,000 applications annually—could be eliminated under the new system.
- Economic Boost: The new planning system is projected to increase New Zealand’s Gross Domestic Product (GDP) by at least 0.56% every year by 2050, representing up to $3.1 billion annually.
- Compliance Savings: A cost-benefit analysis forecasts a saving of approximately $13.3 billion over the next 30 years through reduced administrative and compliance costs, addressing concerns that direct consenting costs have risen 70% since 2014.
Prime Minister Christopher Luxon hailed the overhaul as a necessity, stating the RMA had become a “millstone weighing down our country.”
Key Changes: Less Red Tape, More Standardisation
The proposed system introduces several major structural changes aimed at cutting red tape and standardizing rules across the country:
- Fewer Consents for Homeowners: A key change is the push to empower homeowners. Under the new system, activities with low or no impact outside the property—such as decks, garages, or home extensions—will generally no longer require resource consent.
- Two Bills, Clear Roles: The RMA is replaced by two distinct pieces of legislation, creating a clearer separation between enabling development (Planning Bill) and protecting natural resources (Natural Environment Bill).
- Fewer Plans: The current system involves over 100 different regional and district plans. This will be consolidated into just 17 regional combined plans, making it significantly easier for developers and the public to understand land-use rules.
- Standardised Zoning: Currently, New Zealand councils utilize over 1,100 different planning zones. The new system will introduce a nationally consistent set of standardized zones and rules, simplifying the development process across different parts of the country.
- Regional Spatial Plans: Each region will be required to develop 30-year Regional Spatial Plans to map out future urban growth areas, essential infrastructure corridors, and areas needing environmental protection.
Focus on Property Rights and Environmental Limits
The new legislation places property rights at the core of the system, setting an initial presumption that land use is enabled unless there is a significant impact on others or the natural environment.
However, the new system does not abandon environmental protection. It mandates the use of clear, science-based environmental limits to ensure that development occurs sustainably. This approach aims to provide greater certainty regarding where development is allowed and what must be protected.
The Government also introduced a regulatory relief mechanism, which will require councils to provide practical relief (such as cash payments or rates subsidies) when imposing significant restrictions on private property use, such as heritage protections or significant natural area overlays.
Timeline and Next Steps
The government aims to introduce the two new Bills to Parliament immediately, with the goal of passing the legislation into law in 2026.
- Transition Period: The new system is expected to be fully operational by 2029.
- Consent Certainty: To ensure stability during this transition, existing resource consents under the RMA will be extended until at least mid-2031, providing certainty for current consent holders and ongoing projects.
The Bills are now set to proceed through the Select Committee process, where the public, iwi, and industry stakeholders will be invited to provide feedback on the proposed monumental changes.
