Govt Unveils Major Planning Overhaul to Boost Growth, Jobs and Cut $13B in Costs

Finance Minister Nicola Willis and RMA Reform Minister Chris Bishop say the changes will be central to improving productivity, raising incomes, and building a stronger economy.

The Government has announced a sweeping reform of New Zealand’s planning rules, promising to remove long-standing barriers to economic growth, support job creation, and give the country a modern system that encourages development rather than restricting it. Finance Minister Nicola Willis and RMA Reform Minister Chris Bishop say the changes will be central to improving productivity, raising incomes, and building a stronger economy.

Ending the RMA’s Economic Handbrake

Willis says New Zealand’s productivity challenges cannot be addressed without fixing the Resource Management Act 1991 (RMA), which she describes as a major drag on investment and innovation.

“To improve living standards and keep pace with other advanced economies, we need to start saying yes to investment, yes to innovation and yes to growth,” Willis said.

She said the RMA has, for too long, created cost, uncertainty and complexity—and at times has been misused to block competition, slow infrastructure, and inflate the cost of development.

The reforms announced today form a cornerstone of the Government’s Going for Growth economic agenda, which aims to reduce regulatory burdens and transform New Zealand’s long-term productivity performance.

Billions in Savings and Stronger GDP Growth

Bishop says the reforms—contained in the Planning Bill and the Natural Environment Bill—are projected to save $13.3 billion in administrative and compliance costs over the next 30 years, representing one of the largest regulatory cost reductions in recent history.

Economic modelling shows the new planning system will:

• Increase annual GDP by at least 0.56% by 2050

• Deliver further gains in the decades that follow

• Improve certainty for investors and developers

• Support productivity in core sectors including agriculture, housing, construction and energy

Bishop says replacing the “broken” RMA is essential for unlocking investment and enabling the infrastructure, housing and business growth New Zealand needs.

Modern Planning System to Support Development and Protect the Environment

The two new bills introduced to Parliament today include:

1. The Planning Bill

• Enables development and regulates land use

• Reduces duplication, delays and unnecessary bureaucracy

• Supports nationally important projects and regional economic development

2. The Natural Environment Bill

• Ensures nature is protected

• Promotes efficient use of land and resources

• Provides environmental certainty while removing rigid, outdated controls

Together, the bills create a streamlined system that balances growth and environmental responsibility.

Strengthening Property Rights and Reducing Council Overreach

A significant feature of the reform is the restoration of property rights. Under the new system:

• Councils must provide relief or compensation when imposing restrictions—such as heritage protections or significant natural area designations—that severely limit land use.

• Landowners will have clearer, more predictable rights and fewer arbitrary constraints.

Bishop says this is a “much-needed rebalancing” away from an approach that allowed councils to impose heavy costs on property owners without considering economic impacts.

A System Designed to Get New Zealand Building Again

Bishop says the reforms will support the productive sector by removing red tape that has held back infrastructure, stalled housing supply and slowed innovation.

“It is a system designed to get New Zealand building again, support our productive sectors, and bash through the bureaucracy holding back economic growth.”

Under-Secretary Simon Court will join Bishop to introduce the bills, which the Government aims to pass into law by 2026.

Public Will Have a Say

The bills will go through a full Select Committee process, giving New Zealanders—including landowners, developers, iwi, environmental groups and local councils—an opportunity to provide feedback.

The Government says the reforms represent a once-in-a-generation shift toward a planning system that:

• Enables growth

• Supports innovation

• Protects the environment

• Delivers more homes and infrastructure

• Reduces regulatory drag on the economy