The latest change to the Resource Management system (the Resource Management (Consenting and Other System Changes) Amendment Act 2025) has overhauled maximum fines and removed the ability to insure against those fines.
Changes to enforcement and penalties 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). It’s critical that operators working within ‘high risk’ areas are aware of these changes, including farmers who rely on resource consents or permitted activity standards, landowners with wetlands, indigenous biodiversity or protected landscape features, and those in the construction industry.
Fines increased
The Amendment Act imposes significant uplifts in the maximum fines for environmental offending, although at a practical level, fines imposed tend to be well below the maximum.
For most offences, the maximum fines for individuals will increase from $300,000 to $1 million. The maximum term of imprisonment for individuals will decrease from 2 years to 18 months. The maximum fines for corporate defendants will increase from $600,000 to $10 million.
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.
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. Experience from the health and safety sector indicates insurance will remain vital, as legal and expert advice can be instrumental in resolving prosecutions swiftly.
Infringement offences
The Resource Management (Infringement Offences) Amendment Regulations 2025 were also released. These came into force on 4 September 2025. The first change is to create separate infringement fees for individuals and for companies. It 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. We expect to see an increase in Councils utilising infringement fees for less serious offending.
This article was kindly supplied by Duncan Cotterill. If you have questions about these changes, contact Jamie Robinson at Duncan Cotterill at jamie.robinson@duncancotterill.com.
