The Resource Management (Consenting and Other System Changes) Amendment Act 2025 came into force on 21 August 2025. The Amendment Act introduces a range of reforms which the Government says are intended to “help New Zealanders get things done” pending a new RMA system. We have commented on those changes here and here. 

One of the Amendment Act’s potentially significant changes is to strengthen the RMA’s enforcement regime by significantly increasing penalties for environmental offending for individuals and companies and by prohibiting the use of insurance to pay any fines or infringement fees. 

Increased penalties

Penalties under the RMA were last amended in 2009 and according to the Ministry for the Environment’s Policy Analysis in support of the Amendment Act, had become weak in their deterrence power. It is seen as important that fines are high enough that they deter non-compliance with the rules and are not just seen as the equivalent of a ‘licensing fee’.

The new maximum fines under the RMA have been increased to levels comparable to other New Zealand statutes and environmental protection laws in comparable jurisdictions. The new maximum fines will apply to any environmental offending from 21 August 2025.

In addition, the Resource Management (Infringement Offences) Amendment Regulations 2025 have increased the maximum on-the-spot infringement fees that Council enforcement officers can impose for certain RMA offences, and have also created separate fees for individuals and companies. These changes are due to take effect on 4 September 2025.

Ban on Insurance

The Amendment Act makes penalties under the RMA uninsurable. Any insurance policy which currently provides insurance cover for such penalties will now be of no effect. The prohibition mirrors a ban already in place under the Health and Safety at Work Act 2015. This means that any fine or infringement fees imposed will need to be borne by a company or individual themselves. The prohibition on insurance for fines took effect on 21 August 2025. Additional provisions that make it an offence to hold or offer insurance for RMA fines will not take effect for another two years.

Importantly, insurance cover can still be obtained to cover legal and expert costs incurred in defending an RMA prosecution or any remediation costs associated with remedying a breach (including those imposed by the Court). Parallels from the now-comparable health and safety regime suggest that coverage for legal and expert costs will be vital - especially if the new maximum fines encourage more prosecutions to be defended.

Our assessment

Several local authorities had requested increased fines and infringement fees during the submissions stage of the reforms and these changes are being welcomed by that sector. Given the expected focus in the replacement RMA regime on compliance and enforcement (rather than the requirement for consents prior to an activity commencing), we expect these penalties will be carried over into any new RMA system.

The ban on insurance was controversial during submissions and drew opposition from some industry groups concerned that pecuniary fines may be imposed even where environmental breaches were accidental or unintended. While that remains a risk, it underscores the usefulness of insuring for defence costs and the payment of remediation costs in order to minimise any fines imposed at sentencing.

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