Significant changes to New Zealand’s Resource Management Act (RMA) now apply, increasing fines, removing insurance cover for penalties, and raising compliance expectations for businesses from August 21, 2025.

The Resource Management (Consenting and Other System Changes) Amendment Act 2025 aims to speed up consenting, strengthen compliance, and simplify processes across housing, infrastructure, and primary industries. It received Royal assent on August 20, 2025, and came into force the following day.

Key changes that affect local operations

• Higher fines: Individuals now face penalties of up to $1 million, while companies or trusts can be fined up to $10 million.
• Insurance limits: From August 20, 2025, RMA fines and infringement fees cannot be insured — even if the offence occurred earlier but the fine is imposed after that date.
• Still covered: Defence costs for legal and technical experts, and Court-ordered remediation, remain insurable under Statutory Liability policies.
• Court process: All RMA prosecutions are now judge-alone, and the maximum imprisonment term for individuals has reduced to 18 months.

What this means for your business

• These changes raise the bar for compliance and accountability.
• Financial exposure is now greater because RMA fines must be paid directly by the organisation. Councils and regulators have been given stronger enforcement powers, meaning expectations around risk management and environmental performance are higher than ever.
• Insurance remains a vital safeguard — specialist defence and remediation costs can easily exceed the fine itself in complex cases.

Recommended actions

C&R Insurance Advisors recommend businesses:

• Review RMA exposure across people, plant, contractors, discharges, and consents.
• Update response plans, including communication steps, evidence preservation, and council engagement.
• Check your Statutory Liability cover to ensure defence and remediation limits reflect current risks.
• Contact your advisor if you have an ongoing RMA matter so they can liaise with insurers and ensure alignment.

In summary

• The RMA amendments bring sharper penalties but also clearer expectations. For local businesses, preparation and proactive compliance are key to avoiding costly enforcement.
• For independent advice or a review of your cover settings, talk to your insurance advisor.

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