First tranche of changes: The Government’s first tranche of changes included delegation of land acquisition responsibilities to certain additional government agencies, refining the role of the Environment Court, and requiring parties to participate in mediation or alternative dispute resolution before approaching the Land Valuation Tribunal. Read our update here for more information on the first tranche of policy changes.
Second tranche of changes: In March 2025, the Government announced another set of policy changes which were aimed at speeding up land acquisition and delivering fairer payments for landowners. The Government proposed to streamline the objections process under the PWA so that objections by landowners would be submitted directly to the relevant decision-maker instead of the Environment Court. The Government also proposed to introduce incentive and recognition payments for landowners who settle their compensation claims early. Read our update here for more information on the Government’s second tranche of policy changes.
Third tranche of changes: Today Minister Christopher Penk announced a third and final tranche of policy changes to the PWA following completion of the Government’s review. The Minister said:
Already announced changes include a dedicated carve-out in the law to provide incentive payments and a streamlined objections process for critical infrastructure. Now, this final set of reforms will modernise the wider system – protecting landowners’ rights while ensuring the Crown and local authorities can deliver for New Zealanders.
According to Minister Penk, the third and final tranche will:
- Introduce incentive payments: To encourage early agreements on land acquisition, all landowners who voluntarily sell their property before a Notice of Intention is issued will now be eligible for an incentive payment of 10 per cent of the land value, up to a maximum of NZ$100,000.
- Update home-loss and land-loss payments: To recognise the disruption caused by acquisition, additional payments will be made alongside the land value and any incentive payments:
- The home-loss base payment provided for in section 72A of the PWA will increase from NZ$35,000 to NZ$50,000.
- The land-loss payment amount provided for in section 72C of the PWA will increase from NZ$250-NZ$25,000 to NZ$350-NZ$35,000.
- Home-loss payments will now extend to multiple homes on a property, such as farms held in trust with multiple owners residing on the land.
- Land Acquisition Process Reforms: The process for acquiring land will be streamlined by replacing the initial statutory notice with a more structured engagement process. Before issuing a Notice of Intention for compulsory acquisition:
- Landowners must receive comprehensive information on the acquisition, their rights, entitlements, and an invitation to sell.
- The Minister or local authority must negotiate with landowners in good faith for at least three months (or six months for Māori freehold land).
- Emergency Provisions: New measures will allow land acquisition following a declared state of emergency to support infrastructure restoration and community recovery, when activated by Order in Council. It is unclear what those new measures entail.
The Government intends to introduce the Public Works Act Amendment Bill to Parliament in mid-2025. A copy of the Bill is not yet available. Once the Bill has been introduced to Parliament, the public will be invited to provide feedback through the select committee process.
Bell Gully will provide a further update on the proposed changes to the PWA once the Bill becomes available.
If you have any questions about the matters raised in this article, please get in touch with the contacts listed or your usual Bell Gully adviser.