Recent changes to the Resource Management Act 1991 (RMA) will have a significant impact on individuals and businesses across New Zealand. The Resource Management (Consenting and Other System Changes) Amendment Act 2025 passed into law on 20 August 2025, strengthening compliance and enforcement provisions under the RMA.
Two key changes are worth highlighting:
1. Substantial increases to maximum fines
2. A ban on insurance cover for RMA fines
Heavier fines under the RMA
The maximum fines for offences under the RMA have increased dramatically:
- For individuals (natural persons): from $300,000 to $1,000,000
- For companies and other entities: from $600,000 to $10,000,000
These figures reflect the Government’s intention to deter breaches of the RMA and emphasise accountability for environmental harm.
Fines no longer covered by insurance
Traditionally, many businesses relied on statutory liability insurance to “pick up the tab” for RMA fines. That safety net has now been removed.
From 20 August 2025: Insurers are prohibited from paying fines or infringement fees imposed under the RMA, regardless of what your current policy wording says.
This prohibition applies even if the offence occurred before 20 August 2025, as long as the fine itself is imposed afterwards. Insurers have two years to update their policy documents, but practically, the change applies immediately.
What statutory liability insurance still covers
Statutory liability insurance remains valuable. While fines are now excluded, policies will still respond to:
- Specialist legal fees
- Expert advice and defence costs in RMA investigations or prosecutions
This is similar to what we’ve already seen in the health and safety space, where fines have long been uninsurable, but insurance remains essential for covering defence costs.
Why this matters for you
If you or your business interact with the RMA, for example, through development projects, land use, or environmental compliance: You now face greater financial risk for non-compliance. The days of relying on your insurer to absorb fines are over. This makes it more important than ever to take a proactive approach to RMA compliance and to have a clear understanding of what your insurance will and won’t cover.
Planning ahead with Godfreys Law
Our advice is simple: don’t wait until a problem arises. Understanding your risks and responsibilities now can save you significant cost and stress down the track.
If you’d like to understand how these changes may affect you, we recommend speaking with your specialist RMA advisor or your insurer, and of course, if you’d like general legal guidance, our team at Godfreys Law is here to help.
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