Major Reforms To Public Works Act Boost Landowner Rights and Disaster Response

The changes, set to be introduced through the Public Works Act Amendment Bill in mid-2025, represent the culmination of an independent review launched to modernise the decades-old legislation.

In a sweeping update to land acquisition laws, Land Information Minister Chris Penk has announced the final stage of long-awaited reforms to the Public Works Act (PWA), promising broader landowner protections, bigger compensation packages, and faster response mechanisms during national emergencies.

The changes, set to be introduced through the Public Works Act Amendment Bill in mid-2025, represent the culmination of an independent review launched to modernise the decades-old legislation. The review found the current law lacked clarity, fairness, and the flexibility to support urgent infrastructure development and disaster recovery.

A Modern Approach to Public Infrastructure

“The Government has been working through an overhaul of the Public Works Act to bring it into the 21st century after an independent review found it lacked clarity and commonsense. Today, I am proud to confirm that review is complete,” said Minister Penk.

The reforms aim to resolve long-standing issues with the way land is acquired for public purposes like building roads, schools, hospitals, and renewable energy projects. Central and local governments have frequently faced challenges acquiring land under the current legislation, often causing costly delays to vital infrastructure projects.

“If we want to grow the economy, boost productivity and make New Zealand a better place to live we must fix our pipes, increase the capacity of our schools and hospitals, and build more homes, roads and renewable energy sources,” Penk said.

Key Features of the Final Reforms

The final tranche of reforms builds upon earlier updates that included a legal carve-out to incentivise land sales for critical infrastructure and introduced a streamlined objections process. The newly announced measures include:

1. New Incentive Payments for Early Agreements

To speed up voluntary land sales, landowners who agree to sell before a formal Notice of Intention is issued will be eligible for a 10% incentive payment, capped at $100,000. This change is expected to reduce compulsory acquisitions and foster more cooperative agreements between landowners and the Crown or local councils.

2. Enhanced Home-Loss and Land-Loss Compensation

Recognising the personal impact of compulsory land acquisition, the Government is significantly increasing compensation levels:

• Home-loss payments will rise from $35,000 to $50,000.

• Land-loss payments will increase from a range of $250–$25,000 to $350–$35,000.

In a major policy shift, multiple households on a single property, such as family trusts or farms with several owners residing on-site, will now each be eligible for home-loss payments.

3. Reformed Land Acquisition Process

To improve fairness and transparency, the acquisition process will start with structured engagement rather than a statutory notice. Key features include:

• Comprehensive pre-notice information provided to landowners outlining rights, entitlements, and an invitation to sell voluntarily.

• Mandatory good-faith negotiations for at least three months—or six months for Māori freehold land—before a Notice of Intention can be issued.

This aims to ensure landowners have a meaningful say and sufficient time to understand and respond to acquisition proposals.

4. Emergency Provisions for Natural Disasters

In response to recent events like Cyclone Gabrielle, the Government is introducing new emergency powers allowing land acquisition post-disaster via Order in Council. These provisions are designed to enable the fast restoration of roads, railways, energy systems, and housing following declared states of emergency.

“Cyclone Gabrielle showed in the starkest light the immense challenges communities face after a natural disaster. When roads, railway lines, water and power stations are wiped out and homes left uninhabitable, we must act swiftly and decisively,” Penk said. “This new emergency provision empowers us to reconnect those in need.”

A More Transparent and Efficient System

Minister Penk acknowledged the contributions of the expert panel that advised on the reforms, noting their role in shaping a system that better balances the rights of landowners with the needs of the public.

“I want to thank the panel members for their expert advice in making the Act more efficient, effective, and transparent,” he said. “This will help end decades of difficulties which have seen central and local governments struggle to secure land for development.”

Public Input Encouraged

The Public Works Act Amendment Bill is scheduled to be introduced to Parliament in mid-2025. The public will be invited to provide feedback during the select committee process, ensuring a wide range of voices are heard before the Bill becomes law.

These reforms mark one of the most significant updates to land acquisition policy in recent history and reflect a growing consensus that modern infrastructure demands a modern legal framework—one that respects property rights, encourages cooperation, and responds to crises with urgency.