RMA Amendments – huge increases to fines and insurance for fines now unlawful
The Resource Management (Consenting and Other System Changes) Amendment Act 2025 received Royal assent on 20 August 2025. The Amendment Act is a further step in the transition to a new Resource Management system. Along with changes making it easier to consent new infrastructure, enable sufficient housing capacity, and support primary sector growth, the Government has strengthened the RMA compliance and enforcement regime.
Changes to enforcement and penalties will come into effect immediately and are of critical importance for insurers and anyone who runs a business that interacts with the Resource Management Act (RMA).
Fines increased
The Amendment Act imposes significant uplifts in the maximum fines for environmental offending, placing offences under the RMA within the top tier of fines that can be imposed in New Zealand, although at a practical level, actual fines imposed tend to be well below the maximum.
For most offences:
- Maximum fines for individuals will increase from $300,000 to $1 million. The maximum term of imprisonment for individuals is decreased from 2 years to 18 months.
- Maximum fines for corporate defendants will increase from $600,000 to $10 million.
The decrease in maximum imprisonment means all prosecutions will be dealt with by Judge alone, there will be no option to elect a jury trial.
The new maximum penalties will inevitably result in a proportionate escalation in sentencing outcomes for environmental offending over time. The increase in fines will have real teeth as the Amendment Act also makes insurance against fines unlawful. The deterrence factor for environmental offending will now be two-fold – both a conviction and the obligation to take responsibility for the payment of any fine imposed.
The increase in fines will apply to all environmental offending from the date of Royal assent. The Sentencing Act 2002 provides that offences committed prior to this date will obtain the benefit of the prior reduced maximum penalties. This is relevant for environmental investigations underway and/or where defendants await sentencing.
It is anticipated that the increased fines will incentivise environmental compliance and may influence strategy around plea entry. We expect to see a rise in charges being defended.
Insurance against fines is now unlawful
In line with the health and safety legislation, the Amendment Act makes infringement fees or fines uninsurable. Any part of an existing statutory liability insurance policy which covers fines under the RMA will immediately be of no effect.
Insurance will still be able to cover legal and expert costs involved in a prosecution, and any remediation costs imposed by the Court, but not any fine imposed. Experience from the health and safety sector, which has a similar prohibition for fines, indicates that this insurance will still be vital, as legal and expert advice can be instrumental in resolving prosecutions swiftly. It is likely that this will increasingly involve evidence about the financial position of a defendant, who may not be able to pay fines at these new levels. This type of evidence (largely from accountants) has become commonplace for health and safety cases.
It will be an offence for anyone to enter into an insurance policy which purports to cover RMA fines, or for anyone to in any way offer to indemnify, agree to be indemnified, or make or receive any payment to cover another person’s liability to pay a fine or an infringement fee under the RMA.
There is a two-year grace period, and then fines of $50,000 for individuals and $250,000 for other entities will apply for breach of these provisions.
Infringement offences
Also released last week were the Resource Management (Infringement Offences) Amendment Regulations 2025. These will come into force on 4 September 2025.
The first change from these Regulations is to create separate infringement fees for individuals and for companies. It then also increases existing infringement fees, from a range between $300 and $1,000 for various contraventions of the Act, to between $600 and $2,000 for individuals and $1,200 to $4,000 for companies.
If you have any questions about these changes, and the effects that they may have on you and your insurance policies, please contact a member of our Environmental Law or Insurance teams.
Disclaimer: The content of this article is general in nature and not intended as a substitute for specific professional advice on any matter and should not be relied upon for that purpose.
