Urban Development News from the media | 29 September 2026 | Landmark RMA replacement bills pass third reading to streamline national planning

Landmark RMA replacement bills pass third reading to streamline national planning

Bills replacing the Resource Management Act (RMA) have passed their third reading in Parliament, marking the most significant overhaul of New Zealand’s planning system in 35 years. RMA Reform Minister Chris Bishop stated the new system will replace over 100 planning documents with 17 regional combined plans, featuring nationally standardised zones and rules. The government estimates this could remove the need for around 45% of current consent and permit applications, potentially saving up to $13.3 billion over 30 years in administrative and compliance costs.

For the property and development sector, this represents a monumental shift towards greater certainty, reduced bureaucratic delays, and lower compliance costs. Standardised rules across regions should make it easier to scale operations and deliver housing and infrastructure projects without relitigating the same questions council by council. The transition will occur in stages, with the full new system expected to be operational by 2030, meaning developers should begin preparing for the incoming regional plans now.

https://insidegovernment.co.nz/new-planning-era-begins-for-new-zealand/

Development contributions strengthened to recover Fast-track infrastructure costs

The Government has announced amendments to the Local Government (System Improvements) Amendment Bill to ensure local councils can recover growth-related infrastructure costs linked to projects approved under the Fast-track regime. Previously, development contributions were locked in based on district plans, creating a potential shortfall when fast-tracked, out-of-sequence developments occurred. The changes will allow councils to amend their development contribution policies without the usual consultation process to specifically target these fast-track developments.

For the property and development sector, this means increased financial certainty for local governments but potentially higher upfront costs for developers utilizing the Fast-track process. Councils must adopt any targeted policy amendments within six months of a project's Fast-track approval. These changes apply to all new Fast-track projects but will not affect those that have already received a draft decision or approval. This interim measure is designed to bridge the gap until the new Development Levies system is introduced in 2029 under the Going for Housing Growth programme.

https://www.beehive.govt.nz/release/development-contributions-strengthened-recover-fast-track-infrastructure-costs

Faster and fairer retirement village repayments

The Government is strengthening protections for retirement village residents through faster repayments, earlier access to money, fairer contracts and stronger minimum standards, Associate Housing Minister Tama Potaka says.

“We have listened carefully to older Kiwis and their whānau, and we are acting.

“The maximum repayment period will be shortened from the 12 months we had initially indicated to nine months, and operators will have to pay a resident who is moving 10 per cent of their net termination proceeds within four weeks rather than interest after six months.

“We’re strengthening it because older Kiwis told us the balance needed to shift further towards residents.

“They told us 12 months was still too long and that interest after six months would not provide meaningful help when money was needed most. We listened and strengthened the package.”

The automatic 10 per cent payment will replace the previously announced interest requirement.

https://www.beehive.govt.nz/release/faster-and-fairer-retirement-village-repayments

Wastewater infrastructure constraints stall new housing developments nationwide

A recent report by BRANZ highlights a critical bottleneck in New Zealand's housing supply: severe wastewater infrastructure constraints. Across numerous regions, councils are refusing to issue building or resource consents for new housing developments because local wastewater networks lack the capacity to service them. In some areas, consents are being granted with conditions that prevent connection to the network until infrastructure upgrades—some of which are not scheduled for completion until between 2031 and 2050—are finalized.

This infrastructure deficit poses a substantial risk to the property sector, particularly for large-scale developments crucial for addressing housing shortages. Taumata Arowai reports that approximately half of the nation's underground wastewater networks are in poor or unknown condition, and 60% of treatment plants will require reconsenting within a decade. Developers must conduct rigorous early-stage due diligence on local infrastructure capacity and should anticipate potential requirements to fund localized network upgrades as part of their resource consent conditions to mitigate these delays.

https://www.branz.co.nz/design-build/articles/new-housing-delayed-by-wastewater-constraints

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