Reform Series - Understanding the Regulatory Relief Framework
Reform Series - Understanding the Regulatory Relief Framework
Thursday 5 March, 2026
The proposed Planning Bill and Natural Environment Bill introduce a novel regulatory relief framework as a mechanism which could entitle private landowners to compensation/relief where specified rules in proposed plans significantly impact the reasonable use of their property. The framework responds to the Government’s goal to prioritise private property rights.
In this article we set out the key details of the new regulatory relief framework proposed under Part 4 of Schedule 3 of the Planning Bill. This framework applies to both land use plans under the Planning Bill and natural environmental plans under the Natural Environment Bill.
Specified Rules
Rules on the following specified topics are considered “specified rules” which trigger the regulatory relief framework requirements:
- Outstanding natural landscapes or outstanding natural features.
- Areas of high natural character (in the coastal environment, wetlands, lakes, rivers, or their margins).
- Significant historic heritage sites or significant historic heritage structures.
- Significant natural areas.
- Terrestrial indigenous biodiversity.
- Sites of significance to Māori.
Duty to Prepare Framework
When preparing or deciding a specified rule in a proposed plan that is substantially different from an existing rule, a local authority must consider the impact of the proposed rule on the reasonable use of private land. If a proposed rule is ‘reasonably likely’ to have a ‘significant impact’ on the ‘reasonable use’ of private land, the local authority must prepare a regulatory relief framework and include it in the proposed plan when it is notified for submissions.
The regulatory relief framework must identify the types and level of impact on private property that the local authority considers reasonably likely to occur. As soon as reasonably practicable after the proposed plan is made operative, the local authority must apply the framework and notify affected persons of the relief available to them.
Eligibility
To be eligible for relief under a regulatory relief framework in a land use plan or natural environment plan, a person must own land that is impacted by a specified rule in the proposed plan when it is notified for submissions and still own that land when the plan is made operative.
The proposed changes also have retrospective effect in that, while the regulatory relief framework applies to specified rules in a proposed land use or natural environment plan, a person may be eligible for relief under the relief framework where a specified rule in the first proposed plan is similar to a rule imposed under a plan made under the RMA, provided the land has not changed ownership in that time.
Types of Relief
Any of the following types of relief may be included in a regulatory relief framework (without limitation):
- Monetary payments.
- Rates or planning consent fee reductions/waivers.
- Additional development rights.
- Land swaps.
- Access to grant programs, restoration, fencing, planting or other mitigation activities.
Appeal Rights
Submitters may appeal a local authority’s decision to include a regulatory relief framework in a proposed plan to the Environment Court, provided they referenced this in their original submission on the proposed plan.
Review
If a person considers that the regulatory relief framework was misapplied in respect of their property and entitlement to relief, they may apply to the relevant local authority for a review of the local authority’s application of the framework. Applications must be made within 30 working days of receipt of a relief notice or of public notice that the relief assessment has been carried out.
Status of the Bills
The Environment Select Committee is currently considering the Bills and is due to provide a report to the House of Representatives on 26 June 2026. While the proposed regulatory relief framework is ideal for private property owners, it would impose an additional financial burden on local authorities (and their ratepayers) with no accompanying funding mechanisms proposed at this point in time. It will be interesting to watch how these proposed changes develop after the select committee makes its recommendations.
If you would like advice regarding the potential implications of the proposed regulatory relief framework under the Planning Bill, please contact one of our experts below.
