Government unveils ‘largest economic reform in a generation’ as it scraps RMA

The Government has announced sweeping changes to New Zealand’s planning system, confirming today that the Resource Management Act (RMA) will be repealed and replaced with two new laws – a Planning Act and a Natural Environment Act.

RMA Reform Minister Chris Bishop says the overhaul is the “single largest economic reform in a generation”, designed to create a far more permissive planning regime that will speed up housing, infrastructure and rural development while providing clearer environmental protections.

Bishop says the RMA has held New Zealand back for more than 30 years.

“For more than 30 years the RMA has frustrated farmers and agribusinesses, slowed down housing, delayed infrastructure and added huge cost and complexity for councils, businesses and communities,” he says.

“Our new planning system is a once-in-a-generation opportunity to cast off the shackles imposed by the broken Resource Management Act, and set New Zealand on a path to economic growth that lifts our living standards and protects the environment.”

Under the new framework, the number of consents and permits required is expected to fall by 46 percent. More than 100 existing council plans will be replaced with just 17 regional combined plans that integrate spatial, land-use and environmental rules.

Independent analysis by Infometrics predicts the reforms could boost GDP by 0.56 percent a year by 2050, worth up to $3.1 billion annually. A cost-benefit analysis estimates $13 billion in savings over 30 years through reduced administrative and compliance costs.

Local Government Minister Simon Watts says the changes will reduce duplication and complexity across councils, making decision-making faster and more consistent nationwide.

“Regional councils will have a significantly reduced role because there will be stronger national direction, more standardisation and more permitted activities,” Watts says.

“This replaces complexity with clarity, drives down costs and removes uncertainty for everyone.”

Agriculture Minister Todd McClay and Associate Environment Minister Andrew Hoggard say the new system will give farmers and growers a simpler, more workable process, with fewer consents for low-risk activities, standardised regional rules, and farm planning tools that reduce paperwork.

Hoggard says the reforms restore a basic principle: “It’s your land, you have the right to use it.”

The Government has also announced transitional measures to give certainty as the RMA is phased out, including legislative extensions for thousands of soon-to-expire consents and streamlined consenting rules during the transition period.

Bishop says the shift must be both legislative and cultural.

“When you put property rights at the core and remove excessive government rules from people’s lives, the benefits will quickly follow,” he says.

The Planning Bill and Natural Environment Bill will be introduced to Parliament this afternoon, December 9.

The Government aims to pass them into law in 2026, with national policy direction finalised within nine months. New Zealanders will be able to submit feedback through the Select Committee process.

Consultation on the Government’s wider local government reforms is open until 20 February 2026.