Alert Message
While 2024 introduced a range of legislative changes, 2025 is set to continue that trend with new laws across multiple sectors. The New Zealand government is preparing for significant legal reforms throughout the year, aimed at enhancing transparency, safety, and compliance nationwide.
Some of the key changes and reforms:
The Corporate Governance Amendment Bill is set to reshape New Zealand's company laws when introduced in early 2025. This reform aims to modernise corporate governance practices, making them more relevant to contemporary business environments.
Key proposed changes
Enhancing Corporate Transparency
The emphasis on corporate transparency is paramount in this amendment. Aligning with global trends, these reforms aim to foster trust between companies and their stakeholders. Investors increasingly demand clarity regarding how companies operate and make decisions. The new rules will help establish a more accountable corporate environment, enhancing confidence in New Zealand’s business landscape.
Digital Transformation in Governance
A notable aspect of the upcoming reforms is the increased use of digital methods for corporate governance tasks. This shift promises several benefits, including:
As New Zealand embraces these changes, it remains essential for businesses to adapt swiftly and efficiently.
The Corporate Governance Amendment Bill not only represents a shift in legal frameworks but also signifies a broader commitment to innovative practices within the corporate sector. More information can be viewed regarding these reforms here.
The New Zealand government is undertaking a comprehensive overhaul of the Resource Management Act (RMA), with ambitious plans to replace the existing framework by the end of 2025. This represents one of the most significant legislative changes of the year, with far-reaching implications for property, environmental, and commercial law.
Two-Act Replacement Framework
The government has committed to introducing two new pieces of legislation to replace the RMA by the end of 2025. These will include a Natural Environment Act and a Planning Act, designed to streamline planning systems between councils while providing greater standardisation of consenting processes.
The proposed legislation will increase the number of "permitted" activities and set environmental limits that provide clarity around where development can be enabled while protecting natural resources. This dual-act approach bears some resemblance to the previous government's proposal, but differs significantly in its philosophical underpinnings and implementation methodology.
Property Rights Focus
A distinctive feature of the new RMA replacement is its emphasis on property rights as a fundamental premise. The government has stated that both Acts will include "starting presumptions that land use is enabled, unless there is a significant enough impact on either the ability of others to use their own land or on the natural environment".
This represents a shift toward a more liberal planning system that prioritises the enjoyment of property rights while still maintaining environmental protections. The reform also promises clear protection for lawfully established existing use rights, including provisions for the reasonable expansion of existing activities where the site is appropriately zoned or owned.
Economic Impact & Timeline
According to the government, the RMA replacement will cut administrative and compliance costs by approximately 45 percent, a significant improvement over the estimated 7 percent reduction under the previous government's proposed approach.
This estimate is based on economic analysis of a "blueprint" developed by an Expert Advisory Group completed in early 2025. The implementation timeline is both ambitious and significant, with the government aiming to introduce the legislation by the end of 2025, bring it before the Select Committee in 2026, and pass it before the next election - in time for councils to incorporate the changes into their 2027 long-term plans.
More information can be viewed regarding the RMA reforms here. You can also view the Work Programme for Reforming the Resource Management System here.
Firearms regulation has undergone significant reform in 2025, with several key legislative changes coming into effect and further reforms in progress.
Firearms Prohibition Orders Implementation
The Firearms Prohibition Orders Legislation Amendment Act 2024, which was passed in September 2024, came into effect in March 2025. This legislation represents Phase 1 of the government's firearms reform program and provides police with additional powers to search gang members for firearms.
The enhanced Firearms Prohibition Orders system aims to prevent high-risk individuals from legally accessing or using firearms and from associating with people who possess firearms. This change forms part of the coalition government's first 100-days commitment to strengthen enforcement capabilities against illegal firearms possession.
Shooting Clubs and Ranges Regulation
The Arms (Shooting Clubs, Shooting Ranges, and Other Matters) Amendment Act received Royal assent on March 29, 2025, and will come into force on June 29, 2025. This legislation addresses concerns about Part 6 of the Arms Act relating to controls placed on shooting clubs and shooting ranges in 2020.
The amendment represents Phase 2 of the firearms reform program and aims to balance regulatory oversight with practical operational requirements for legitimate shooting facilities.
Ongoing Reform Programme
The government is currently progressing with Phases 3 and 4 of its firearms reform program. Phase 3 involves a review of the Firearms Registry to assess its effectiveness in improving public safety, along with the planned transfer of the Firearms Safety Authority to another department.
Phase 4, which is arguably the most comprehensive component, will involve a systematic rewrite of the Arms Act 1983 to ensure it provides greater protection for public safety, reflects best practice, and is fit for purpose in the contemporary context. Public submissions on this rewrite closed on February 28, 2025, and the government is now analysing feedback to inform the drafting process.
Employment legislation has seen significant changes in 2025, with several important amendments affecting both employers and employees across New Zealand.
Minimum Wage and Contractor Classification
Effective April 1, 2025, the minimum wage in New Zealand increased to $23.50 per hour, requiring employers to ensure compliance with this new rate. In addition to wage adjustments, the government is developing a new 'gateway test' to determine whether an individual should be classified as an employee or an independent contractor.
This test aims to provide greater clarity in employment classifications, addressing a persistent area of contention in employment law that has implications for tax obligations, entitlements, and protections.
High-Income Dismissal Claims Threshold
A notable change proposed for 2025 is the introduction of an income threshold for unjustified dismissal claims. Under this change, employees earning more than $180,000 base pay per year would no longer be able to make unjustified dismissal claims. This reform is intended to simplify hiring and termination processes for companies and reduce the risk of legal disputes involving high-earning individuals.
However, it remains unclear whether this change will significantly alter employment relations dynamics, as high-earning employees are likely to negotiate alternative contractual arrangements to protect their interests, such as non-fault termination clauses or provisions to opt back into the current unjustified dismissal framework.
Restraint of Trade Prohibitions
As of February 2025, the Restraint of Trade Prohibition Bill was at its second reading in Parliament. This bill proposes to prohibit the use of restraint of trade clauses in employment agreements for lower and middle-income employees.
If passed, this legislation would significantly impact how employers structure employment agreements and potentially increase workforce mobility for many New Zealand workers. Legal practitioners will need to review and potentially redraft existing employment agreements to ensure compliance with these new restrictions once they come into effect.
Starting May 1, 2025, new regulations will reshape tenancy regulations in New Zealand, particularly affecting fixed-term tenancies. This legislative update aims to address significant issues that have arisen in the rental market.
Key aspects of these changes include:
These adjustments aim to create a more equitable rental environment, reflecting the evolving needs of renters across New Zealand. Keeping abreast of these changes is vital for both tenants and landlords as they navigate this updated landscape.
The Anti-Money Laundering and Countering Financing of Terrorism (AML/CFT) Act 2009 is undergoing significant updates, reflecting New Zealand's commitment to international standards. These changes aim to strengthen the framework for combating financial crime.
Key changes include:
Adapting to these reforms is crucial for businesses. Non-compliance can lead to severe penalties, including substantial fines and reputational damage. Legal experts such as Canterbury Legal can assist organisations in understanding their responsibilities under the revised AML/CFT framework, ensuring proactive measures are taken to mitigate risks associated with money laundering and terrorism financing.
Staying informed about these changes protects not only individual interests, but also contributes to a safer financial environment across New Zealand.
New Zealand's camping regulations are set for a significant update effective June 7, 2025. These changes aim to enhance the management of freedom camping across the country, ensuring a balance between environmental preservation and recreational enjoyment.
Key changes:
The rationale behind these changes is clear: protecting New Zealand's beautiful landscapes while accommodating the growing popularity of freedom camping. Increased compliance ensures that both campers and local communities benefit from clear guidelines and expectations.
As these new rules roll out, understanding their implications becomes essential for anyone looking to enjoy New Zealand’s great outdoors responsibly.
The legislative changes in New Zealand during 2025 represent a comprehensive and far-reaching reconfiguration of the legal landscape across multiple sectors.
From the ambitious replacement of the Resource Management Act to the implementation of firearms reforms, employment law changes, corporate law modernization, and tax system updates, these developments reflect the government's priorities in reducing regulatory burden, enhancing economic growth, and streamlining legal frameworks.
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