PWA Expert Richard Rodden on Modernising the Public Works Act: Government Proposes Key Amendments to Support Infrastructure Delivery
- Property
Modernising the Public Works Act: Government Proposes Key Amendments to Support Infrastructure Delivery
June 2025
The Government is progressing significant amendments to the Public Works Act 1981 (PWA), with the aim of accelerating land acquisition processes for critical infrastructure while improving fairness for affected landowners.
This legislative reform is in response to long-standing concerns about inefficiencies and delays in public works delivery and is supported by a comprehensive review by Land Information New Zealand (LINZ).
The PWA has remained largely unchanged since 1988. While it establishes fundamental protections for landowners, including compensation entitlements and objection rights, the system has become increasingly ill-suited to the demands of today’s infrastructure development. On average, land acquisition under the current Act can take one to two years - contributing to cost overruns, project delays, and prolonged uncertainty for landowners.
To address these issues, the Government is pursuing a two-stage reform process.
Stage One: Critical Infrastructure Bill
The first stage, the Public Works Act (Critical Infrastructure) Bill 2025, was introduced in May 2025 and targets land needed for high-priority projects under the Fast-track Approvals Act 2024 and the Government Policy Statement on Land Transport. Key features include:
- Incentive and Recognition Payments: Voluntary sellers may receive an incentive payment of 15% of land value (capped at $150,000), and all affected landowners will be eligible for a recognition payment of up to $92,000.
- Streamlined Objection Process: The Bill proposes removing the Environment Court’s role in objections, replacing it with internal review by the acquiring authority, with judicial review still available.
- Exclusions for Protected Māori Land: These lands are excluded from the fast-track process but eligible for the new payments if acquired.
Stage Two: Broader PWA Reform
A second, more comprehensive Bill is anticipated later in 2025. It will focus on:
- Simplifying acquisition processes (e.g., enabling NZTA to contract directly with landowners)
- Strengthening agency collaboration
- Mandating mediation in compensation disputes
- Introducing new emergency acquisition powers
The Critical Infrastructure Bill is expected to come into force by late 2025, with retrospective application to certain ongoing acquisitions.
Please do not hesitate to get in contact should you have any questions or if your property is affected.