Resource Management Act Changes

The Resource Management Act 1991 (“RMA”) has undergone multiple changes that will affect farmers.
 
This came into force on 21 August 2025 through the Resource Management Amendment Act. 
 
The changes are a shift towards a higher deterrent and greater accountability in environmental compliance. 
 
The main change that affects primary producers is that they are no longer able to insure against a fine, or an infringement fee under the RMA.  This reinforces the principle that penalties for non-compliance must be borne personally or corporately and are not transferable to insurers.
 
Any insurance policy or indemnity that attempts to cover resource management fines is unenforceable.
 
While all insurers should have already advised their clients, now is a good time to review your insurance policies to ensure that fines and liabilities are not included.  Insurance is still permitted to cover legal defence costs, expert advice, specialist representation and remediation costs.
 
Another significant change is the unprecedented increase in maximum fines.  For individuals this has increased from $300,000 to $1,000,000, and for companies and trusts (which have been defined by case law as entities) this has increased from $600,000 to $10,000,000. 
 
Unfortunately, unintentional breaches are not covered by insurance.  We recommend that you review and update any existing on-farm RMA policies and notify your staff so that they are aware of the changes and the significant implications for the business if a breach of the RMA occurs.
 
If you have any queries, please contact us on 07 343 9393.