Retail Payment System Act 2022

1: Title
This Act is the Retail Payment System Act 2022.
2: Commencement
1: This Act comes into force on the day after the date on which it receives the Royal assent.
2: However, subpart 3
1: Preliminary provisions
3: Purpose
The purpose of this Act is to promote competition and efficiency in the retail payment system for the long-term benefit of merchants and consumers in New Zealand.
4: Purpose and principles of exercising functions and powers under this Act
1: The functions and powers of the Commission and the Minister must be exercised for the purpose set out in section 3
2: In deciding whether to exercise their functions and powers, and in exercising them, the Commission and the Minister must take into account the following principles to the extent that the Commission or Minister considers them relevant:
a: that merchants and consumers should pay no more than reasonable fees for the supply of payment services; and
b: that the retail payment system provides a reasonable degree of transparency. 2021 No 13 s 13
5: Overview of this Act
This Act—
a: provides for the regulation of participants in retail payment networks (including via initial designations and an initial pricing standard); and
b: confers certain functions and powers on the Commission for that purpose, of which some apply to designated networks and others apply to all retail payment networks; and
c: enables the Commission to regulate fees charged by merchants in respect of certain payment services (for example, payment surcharges); and
d: provides for investigation, monitoring, and enforcement by the Commission.
6: Functions of Commission under this Act
In addition to the other functions conferred on the Commission by this Act, the Commission’s functions in relation to the retail payment system are as follows:
a: to monitor competition and efficiency in the retail payment system:
b: to conduct inquiries, reviews, and studies into any matter relating to the retail payment system in New Zealand:
c: to make available reports, summaries, and information about the things referred to in paragraphs (a) and (b)
d: to co-operate with and assist other law enforcement or regulatory agencies that carry out a role in relation to the retail payment system. 1986 No 5 s 49 1986 No 121 s 6
7: Interpretation
In this Act, unless the context otherwise requires,— access standard subpart 2 section 20(1)(c) affected persons Commission Commerce Act 1986 consumer contravention of this Act designated network
a: declared to be a designated retail payment network under subpart 1
b: designated under an initial designation designation order
a: an Order in Council under section 10
b: an initial designation direction subpart 3 goods Fair Trading Act 1986 information disclosure standard subpart 2 section 20(1)(a) initial designation subpart 2 initial pricing standard subpart 3 make publicly available merchant Fair Trading Act 1986 merchant surcharging standard subpart 1 Minister network network infrastructure network operator operator
a: is wholly or partly responsible to the participants (or any of them) for the network rules:
b: operates or manages the network or the core infrastructure of the network network rules
a: how the network is to be constituted (for example, as a set of arrangements between its participants or as a legal person with whom its participants are to interact):
b: how activities on the network are to be carried out:
c: the rights and obligations under the network of its operators and participants network standard
a: a standard issued by the Commission under subpart 2
b: the initial pricing standard participant payment payment method payment product payment services payment surcharge
a: for accepting a retail payment; or
b: for using one payment method rather than another pricing standard
a: a network standard issued by the Commission under subpart 2 section 20(1)(b)
b: the initial pricing standard retail payment retail payment network retail payment system service provider services Fair Trading Act 1986 standard
8: Transitional, savings, and related provisions
The transitional, savings, and related provisions set out in Schedule 1
9: Act binds the Crown
1: This Act binds the Crown.
2: However, the Crown is not liable to pay a pecuniary penalty under subpart 3
3: Where it is alleged that the Crown has contravened any provision of this Act, the Commission or the person directly affected by the contravention may apply to the court for a declaration that the Crown has contravened that provision and, if the court is satisfied on the balance of probabilities that the Crown has contravened that provision, it may make a declaration accordingly. 1986 No 5 s 5
2: Designated networks
1: Designations
10: Designation of networks by Order in Council
1: The Governor-General may, on the recommendation of the Minister, make an Order in Council declaring a retail payment network (excluding the cash retail payment network) to be a designated network.
2: A designation order is secondary legislation ( see Part 3 The following table is small in size and has 3 columns that are grouped under the heading Legislation Act 2019 requirements for secondary legislation made under this section. Legislation Act 2019 requirements for secondary legislation made under this section Publication PCO must publish it on the legislation website and notify it in the Gazette LA19 s 69(1)(c) Presentation The Minister must present it to the House of Representatives LA19 s 114 Disallowance It may be disallowed by the House of Representatives LA19 ss 115 116 This note is not part of the Act.
11: Minister’s recommendation
1: The Minister may recommend to the Governor-General that a retail payment network be designated only after receiving a recommendation from the Commission.
2: In deciding whether to make a recommendation that a designation order be made, the Minister may do any of the following:
a: accept or reject the Commission’s recommendation:
b: request that the Commission reconsider any matter (such as an error, an oversight, or competing policy interests):
c: make any other decision that the Minister considers is in the public interest.
12: Commission’s recommendation
1: The Commission may recommend to the Minister that a retail payment network be designated.
2: In deciding whether to make a recommendation, the Commission must take into account the following:
a: any features of the retail payment network, or any conduct of participants in the network, that reduce, or are likely to reduce, competition or efficiency:
b: the nature of the network, including the number, value, and nature of the transactions that the network currently processes or is likely to process in the future:
c: the Financial Market Infrastructures Act 2021
13: Process for Commission’s recommendation
1: Before making a recommendation under section 12
a: consult the Reserve Bank of New Zealand if the network comprises any part of a system that is a designated FMI within the meaning of the Financial Market Infrastructures Act 2021
b: consult affected operators of the network about the proposed designation (including the Commission’s reasons for proposing to make a recommendation).
2: The Commission must make the recommendation publicly available as soon as practicable after making it, including a statement of its reasons for making the recommendation.
14: Content of designation
1: A designation order must specify both of the following:
a: the network:
b: at least 1 person that is an operator of the network.
2: A designation order may specify 1 or more of the following:
a: the payment products in the designated network:
b: documents that set out some or all of the network rules (whether the documents are referred to by name or description):
c: classes of participants. 2021 No 13 s 29
15: Duration of designation
1: A designation order continues in force until the date on which the order expires (the expiry date
2: A designation order must state its expiry date, which must be no later than 10 years after the date on which the order commences.
3: If a network ceases to be a designated network, any network standard or direction that applies to the network—
a: expires if the standard or direction applies only to that network; or
b: ceases to apply to the network in any other case.
16: Amendment and revocation of designation
A designation order may be amended or revoked under sections 10 to 14
a: sections 12(2) 13
b: section 12(2)
2: Network standards for designated networks
17: Commission may issue network standards for designated networks
1: The Commission may issue network standards.
2: A network standard may do either or both of the following:
a: impose requirements on participants in designated networks:
b: set out requirements applying to designated networks with which the participants must ensure compliance.
3: A network standard may—
a: apply to all participants in designated networks, a particular participant, or a class of participants:
b: apply to all designated networks, a particular designated network, or a class of designated networks:
c: apply in all circumstances, particular circumstances, or a class of circumstances (for example, in relation to payment products or payment methods).
4: A network standard issued under this section is secondary legislation ( see Part 3 2021 No 13 s 31 The following table is small in size and has 3 columns that are grouped under the heading Legislation Act 2019 requirements for secondary legislation made under this section. Legislation Act 2019 requirements for secondary legislation made under this section Publication The maker must publish it in accordance with the Legislation (Publication) Regulations 2021 LA19 s 74(1)(aa) Presentation The Minister must present it to the House of Representatives LA19 s 114 Disallowance It may be disallowed by the House of Representatives LA19 ss 115 116 This note is not part of the Act.
18: Criteria for issuing network standards
In deciding whether to issue a network standard (the proposed standard
a: in the case of a proposed pricing standard or access standard, take into account whether there are any features of the retail payment network, or any conduct of participants in the network, that reduces, or are likely to reduce, competition or efficiency:
b: in the case of a proposed access standard, consider the effect on innovation in the retail payment system of issuing a network standard.
19: Process for issuing network standards
1: Before issuing a network standard (the proposed standard
a: make the proposed standard publicly available; and
b: consult affected persons, or persons that the Commission considers to be representatives of affected persons, about the proposed standard (including the Commission’s reasons for issuing the proposed standard).
2: After issuing a network standard, the Commission must make the standard, and the Commission’s reasons for issuing the standard, publicly available. 2021 No 13 s 32
20: Subject matter of network standards
1: A network standard may deal with, or otherwise relate to, 1 or more of the following matters:
a: the disclosure of information relating to payment services or the designated network, including requirements for information to be provided—
i: by participants to all or any of merchants, consumers, the Commission, and the public; and
ii: by one class of participants to another:
b: pricing for payment services, including—
i: pricing principles and limits on fees (or components of fees) charged by all or any participants or classes of participants in a designated network:
ii: pricing method requirements, including requirements relating to pricing methodologies and how prices are expressed, and to pricing formats when prices are offered to merchants:
c: access requirements for aspects of a designated network, including—
i: how a person may become a participant of a network or gain access to network infrastructure or services, including requiring any class of participants to allow new participants to access all or certain aspects of the network (for example, to allow access for new acquirers to a network or to provide for new entrants or acquirers to access switch infrastructure or for providers of new payment products to use the retail payment network):
ii: how a participant may be required to provide access to network infrastructure or services to participants.
2: A pricing standard may relate both to fees and to payments having an equivalent object or effect to fees.
3: A network standard may require participants to give to the Commission reports relating to any contraventions of requirements imposed by or under this Act. 2021 No 13 s 34
21: Pecuniary penalty for contravention of network standard
1: A participant who contravenes a requirement of a network standard is liable to a pecuniary penalty.
2: See subpart 3
22: Duration of network standard
1: A network standard continues in force until the date on which it expires (the expiry date
2: A standard must state its expiry date, which must be no later than 10 years after the date on which the standard commences.
23: Amendment and revocation of network standards
A network standard may be amended or revoked under sections 17 to 20
a: sections 18 19
b: section 18
3: Rules of designated networks
24: Commission may give directions about network rules
1: The Commission may, by notice (a direction notice
2: A direction may require 1 or more operators to do 1 or more of the following in accordance with the direction:
a: set network rules:
b: amend network rules:
c: notify the Commission of any amendments made to network rules:
d: apply for, and obtain, the Commission’s approval before making amendments to network rules that are of a type identified in the direction as substantive amendments.
3: A direction may require 1 or more participants to comply with 1 or more network rules.
4: A direction must state the reasons for which it is given.
5: A direction given to a class of participants is secondary legislation ( see Part 3 2021 No 13 s 80 The following table is small in size and has 3 columns that are grouped under the heading Legislation Act 2019 requirements for secondary legislation made under this section. Legislation Act 2019 requirements for secondary legislation made under this section Publication The maker must publish it in accordance with the Legislation (Publication) Regulations 2021 LA19 s 74(1)(aa) Presentation The Minister must present it to the House of Representatives LA19 s 114 Disallowance It may be disallowed by the House of Representatives LA19 ss 115 116 This note is not part of the Act.
25: Criteria for giving directions
In deciding whether to give a direction that relates to setting or amending network rules, and in deciding on its terms, the Commission must take into account whether there are any features of the retail payment network, or any conduct of participants in the network, that reduces, or are likely to reduce, competition or efficiency.
26: Process for giving directions
1: Before giving a direction that relates to setting or amending network rules (the proposed direction
a: make the proposed direction publicly available; and
b: consult affected persons, or persons that the Commission considers to be representatives of affected persons, about the proposed direction (including the Commission’s reasons for giving the proposed direction).
2: After giving a direction, the Commission must make the direction, and the Commission’s reasons for giving the proposed direction, publicly available.
27: Pecuniary penalty for contravention of direction
1: A participant that contravenes a requirement of a direction is liable to a pecuniary penalty.
2: See subpart 3
28: Amendment and revocation of directions
A direction may be amended or revoked in the same way in which it may be made, except that—
a: sections 25 26
b: section 25
3: Merchant surcharging, monitoring and enforcement, and miscellaneous provisions
1: Merchant surcharging standards
29: Purpose of this subpart
1: The purpose of this subpart is to ensure that payment surcharges for payment services are no more than the cost to the merchant of the payment services used for accepting retail payments.
2: The functions and powers of the Commission under this subpart must also be exercised for that purpose. Competition and Consumer Amendment (Payment Surcharges) Act 2016 (Aust), s 55
30: Commission may issue merchant surcharging standards
1: The Commission may issue merchant surcharging standards.
2: A merchant surcharging standard may impose requirements on merchants that use payment services for retail payments.
3: A merchant surcharging standard may—
a: apply to all merchants that accept payment services from networks or a class of those merchants:
b: apply to all networks, a particular network, or a class of networks:
c: apply in all circumstances, particular circumstances, or a class of circumstances (for example, in relation to payment methods or payment products).
4: A standard issued under this section is secondary legislation ( see Part 3 2021 No 13 s 31 The following table is small in size and has 3 columns that are grouped under the heading Legislation Act 2019 requirements for secondary legislation made under this section. Legislation Act 2019 requirements for secondary legislation made under this section Publication The maker must publish it in accordance with the Legislation (Publication) Regulations 2021 LA19 s 74(1)(aa) Presentation The Minister must present it to the House of Representatives LA19 s 114 Disallowance It may be disallowed by the House of Representatives LA19 ss 115 116 This note is not part of the Act.
31: Process for issuing merchant surcharging standards
1: Before issuing a merchant surcharging standard (the proposed standard
a: make the proposed standard, and the Commission’s reasons for issuing the proposed standard, publicly available; and
b: consult persons that the Commission considers to be representatives of affected persons about the proposed standard (including the Commission’s reasons for issuing the proposed standard).
2: After issuing a merchant surcharging standard, the Commission must make the standard, and the Commission’s reasons for issuing the proposed standard, publicly available. 2021 No 13 s 32
32: Subject matter of merchant surcharging standards
1: A merchant surcharging standard may deal with, or otherwise relate to, 1 or more of the following matters:
a: the disclosure of information relating to payment surcharges, including requirements for information to be provided—
i: by merchants to all or any consumers, the Commission, and the public; and
ii: by one class of merchants to consumers that acquire their goods or services:
b: requirements that merchants must represent payment surcharges in respect of payment services in a manner set out in the standard:
c: requirements that merchants must limit payment surcharges in respect of payment services in accordance with the standard:
d: requirements that merchants must keep records of how payment surcharges are calculated.
2: Requirements under subsection (1)(b) and (c) may be linked to—
a: principles and limits on payment surcharges (or components of payment surcharges) payable by consumers or classes of consumers to merchants:
b: requirements relating to surcharging methodologies and how payment surcharges are expressed, and to formats when payment surcharges are charged to consumers. 2021 No 13 s 34
33: Pecuniary penalty for contravention of merchant surcharging standard
1: A merchant who contravenes a requirement of a merchant surcharging standard is liable to a pecuniary penalty.
2: See subpart 3
34: Amendment and revocation of merchant surcharging standards
A merchant surcharging standard may be amended or revoked in the same way in which it may be made, except that section 31
a: a standard that amends another standard if the Commission is satisfied that the amendment is only correcting a minor error or is otherwise of a minor nature only:
b: a revocation of a standard.
35: Notice to take corrective action
1: If satisfied that a merchant has failed to comply with any requirements of a merchant surcharging standard, the Commission may, by written notice given to the merchant, require the merchant to take any steps specified in the notice to—
a: remedy the non-compliance; or
b: ensure that the non-compliance is not continued or repeated.
2: The notice must specify a reasonable period (a specified period
3: A merchant given a notice must comply with the notice within the specified period.
4: A merchant that contravenes a notice is liable to a pecuniary penalty.
5: See subpart 3 2020 No 60 s 23
2: Provisions of Commerce Act 1986 of general application
36: Monitoring and investigation powers of Commission
The following provisions of the Commerce Act 1986
a: section 98
b: sections 98A 98G
c: section 99
d: section 100
e: section 106
37: Powers of Commission based on subpart 8 of Part 4 of Commerce Act 1986
For the purpose of carrying out its functions and exercising its powers under Part 2 subpart 1 section 98
a: investigate any of the following:
i: how effectively and efficiently any person is supplying retail payment services:
ii: how any standard or direction being considered by the Commission may be applied, or how any standard or direction has been applied, in considering standards or directions:
b: examine, consider, or investigate any activity, cost, revenue, transfer, asset valuation, circumstance, or event that is occurring or that has occurred during the previous 7 years:
c: by notice in writing, require any person—
i: to prepare and produce forecasts, forward plans, or other information; and
ii: to apply any methodology specified by the Commission in the preparation of forecasts, forward plans, or other information:
d: by notice in writing, require any person that the Commission has reason to believe may have information or documents relevant to an investigation, audit, or inquiry to do either or both of the following:
i: produce or supply to the Commission documents and information in relation to payment services or the prices or operations of the person in respect of payment services:
ii: answer any questions about any matter that the Commission has reason to believe may be relevant to the investigation, audit, or inquiry:
e: by notice in writing, require any person, at the time and place specified in the notice, to produce or supply to the Commission an expert opinion from an appropriately qualified person, or a member of a class of appropriately qualified persons, as determined by the Commission in relation to the matters in paragraphs (a), (b), (c), and (d)(i). 1986 No 5 s 53ZD
38: Application of other provisions of Commerce Act 1986
The following provisions of the Commerce Act 1986
a: section 13
b: section 15
c: section 16
d: section 17
e: section 25
f: section 26
g: section 79
h: section 79A
i: section 88
j: section 88A
k: section 89
l: section 90
m: sections 99B to 99P
n: section 100A
o: sections 101 102
p: section 103 section 53ZD section 37 sections 53B(1)(c) 53N
q: section 104
r: section 106A
s: section 109 2020 No 60 s 33
3: Pecuniary penalties
39: Pecuniary penalty orders for contraventions of network standards and directions
1: The High Court may, on the application of the Commission, order a participant ( A
a: contravened a pricing standard; or
b: been involved in a contravention of a pricing standard.
2: The amount of any pecuniary penalty under subsection (1) must not exceed,—
a: in the case of an individual, $500,000 for each act or omission; or
b: in any other case, $5 million for each act or omission.
3: The High Court may, on the application of the Commission, order a participant ( A
a: contravened an information disclosure standard; or
b: contravened an access standard; or
c: contravened a direction to set or amend network rules under section 24(2)(a) or (b)
d: contravened a direction to comply with 1 or more network rules under section 24(3)
e: been involved in a contravention of any of those things.
4: The amount of any pecuniary penalty under subsection (3) must not exceed,—
a: in the case of an individual, $200,000 for each act or omission; or
b: in any other case, $2 million for each act or omission.
5: The High Court may, on the application of the Commission, order an operator ( A
a: contravened a direction to notify the Commission of any amendments made to network rules under section 24(2)(c)
b: contravened a direction to obtain the Commission’s approval before making any substantive amendments to network rules under section 24(2)(d)
c: been involved in a contravention of either of those things.
6: The amount of any pecuniary penalty under subsection (5) must not exceed,—
a: in the case of an individual, $15,000 for each act or omission; or
b: in any other case, $150,000 for each act or omission. 1986 No 5 s 80 2020 No 60 s 30
40: Pecuniary penalty orders for contraventions of merchant surcharging standards
1: The High Court may, on the application of the Commission, order a merchant ( A
a: contravened a merchant surcharging standard; or
b: been involved in a contravention of a merchant surcharging standard.
2: The amount of any pecuniary penalty under subsection (1) must not exceed,—
a: in the case of an individual, $200,000 for each act or omission; or
b: in any other case, $600,000 for each act or omission.
41: Pecuniary penalties for contravention of notice to take corrective action
1: The District Court may, on the application of the Commission, order a merchant to pay to the Crown a pecuniary penalty if satisfied that the merchant has failed to comply with a notice given by the Commission under section 35(1)
2: The amount of any pecuniary penalty under subsection (1) must not exceed,—
a: in the case of an individual, $10,000 for each act or omission; or
b: in any other case, $30,000 for each act or omission. 2020 No 60 s 30(4), (5), (6)
42: Who is involved in contraventions
In this subpart, a person is involved in a contravention
a: has attempted to contravene any of those provisions; or
b: has aided, abetted, counselled, or procured any other person to contravene any of those provisions; or
c: has induced, or attempted to induce, any other person, whether by threats or promises or otherwise, to contravene any of those provisions; or
d: has been in any way, directly or indirectly, knowingly concerned in, or party to, the contravention by any other person of any of those provisions; or
e: has conspired with any other person to contravene any of those provisions.
43: Proceedings for pecuniary penalties
1: Where conduct by any person constitutes a contravention of 2 or more provisions referred to in this subpart, proceedings may be instituted under this subpart against that person in relation to the contravention of any 1 or more of the provisions.
2: However, no person is liable to more than 1 pecuniary penalty under this subpart in respect of the same conduct.
44: Considerations for court
In determining an appropriate penalty under this subpart, the court must have regard to—
a: the nature and extent of the contravention; and
b: the nature and extent of any loss or damage suffered by any person because of the contravention; and
c: any gains made or losses avoided by the person in contravention; and
d: whether the person in contravention has paid an amount in compensation or taken other steps for reparation or restitution; and
e: the circumstances in which the contravention or other act or omission took place (including whether it was intentional, inadvertent, or caused by negligence); and
f: any previous contraventions of a similar nature; and
g: any other relevant matter. 2020 No 60 s 30(6)
4: Other proceedings and enforcement
Compensation
45: Court may order compensation
1: The court may order a person to pay compensation to any person (an aggrieved person Guidance note
A contravention of this Act See section 7
2: An application for an order under this section may be made by the Commission or by an aggrieved person.
3: In proceedings under this section, the court may make any orders as to costs that it thinks fit. 1986 No 5 s 87A 2013 No 69 s 494 2020 No 60 s 32 Undertakings
46: Enforceable undertakings in connection with enforcement of this Act
The following provisions of the Commerce Act 1986
a: section 74A
b: section 74B
c: section 74C Injunctions
47: Court may grant injunction
1: The court may, on the application of the Commission or any other person, grant an injunction—
a: restraining a person from engaging in conduct that constitutes or would constitute a contravention of this Act:
b: requiring a person to do an act or a thing if—
i: that person has refused or failed, or is refusing or failing, or is proposing to refuse or fail, to do that act or thing; and
ii: the refusal or failure was, is, or would be a contravention of this Act. Guidance note
A contravention of this Act See section 7
2: The court may at any time rescind or vary an injunction granted under this subpart. 2013 No 69 s 480 2020 No 60 s 35
48: When court may grant restraining injunctions
1: The court may grant an injunction restraining a person from engaging in conduct of a particular kind if—
a: it is satisfied that the person has engaged in conduct of that kind; or
b: it appears to the court that, if an injunction is not granted, it is likely that the person will engage in conduct of that kind.
2: The court may grant an interim injunction restraining a person from engaging in conduct of a particular kind if in its opinion it is desirable to do so.
3: Subsections (1)(a) and (2) apply whether or not it appears to the court that the person intends to engage again, or to continue to engage, in conduct of that kind.
4: Subsections (1)(b) and (2) apply whether or not—
a: the person has previously engaged in conduct of that kind; or
b: there is an imminent danger of substantial damage to any other person if the person engages in conduct of that kind. 2013 No 69 s 481 2020 No 60 s 36
49: When court may grant performance injunctions
1: A court may grant an injunction requiring a person to do an act or a thing that they are required to do under this Act (including under a standard or direction) if—
a: it is satisfied that the person has refused or failed to do that act or thing; or
b: it appears to the court that, if an injunction is not granted, it is likely that the person will refuse or fail to do that act or thing.
2: The court may grant an interim injunction requiring a person to do an act or a thing that they are required to do under this Act (including under a standard or direction) if in its opinion it is desirable to do so.
3: Subsections (1)(a) and (2) apply whether or not it appears to the court that the person intends to refuse or fail again, or to continue to refuse or fail, to do that act or thing.
4: Subsections (1)(b) and (2) apply whether or not—
a: the person has previously refused or failed to do that act or thing; or
b: there is an imminent danger of substantial damage to any other person if the person refuses or fails to do that act or thing. 2020 No 60 s 37
50: Commission’s undertaking as to damages not required
1: If the Commission applies to the court for the grant of an interim injunction under this subpart, the court must not, as a condition of granting an interim injunction, require the Commission to give an undertaking as to damages.
2: In determining the Commission’s application for the grant of an interim injunction, the court must not take into account that the Commission is not required to give an undertaking as to damages. 2013 No 69 s 482 2020 No 60 s 38
51: Limit on proceedings
Proceedings for civil pecuniary penalties or compensation may be commenced within 3 years after the contravention occurred. 1986 No 5 ss 86(6) 87(6)
5: Miscellaneous provisions
52: Authorisation for restrictive trade practices
Part 2
53: Applications, submissions, and other information given to Commission or other person in accordance with Commission’s requirement
1: An application or a submission made, or any other information given, to the Commission, or to be made or given to another person in accordance with a requirement of the Commission, must be made or given in the way required by the Commission.
2: The Commission’s requirements may include (without limitation) requirements about 1 or more of the following:
a: the form in which the application, submission, or information must be made or given:
b: the information that must be given with the application, submission, or information:
c: the way in which any information referred to in this section must be verified.
3: Information to be given to the Commission or other person must be given within the period determined by the Commission. 2021 No 13 s 149
54: Regulations
1: The Governor-General may, by Order in Council made on the recommendation of the Minister, make regulations for 1 or more of the following purposes:
a: requiring the payment to the Commission of fees and charges for obtaining the Commission’s approval for amendments to network rules that are of a type identified by the Commission in a direction under section 24(2)(d)
b: providing for any other matters contemplated by this Act, necessary for its administration, or necessary for giving it full effect.
2: The Minister may make a recommendation only if the Minister has consulted persons that the Minister considers are likely to be significantly affected by the regulations or persons that the Minister considers to be representatives of those persons.
3: Regulations made under this section are secondary legislation ( see Part 3
4: Regulations may authorise the Commission to refund or waive, in whole or in part and on any conditions as may be prescribed, payment of any fee or charge payable in relation to any person or class of persons.
5: The Commission may refuse to carry out a function until a fee or charge is paid.
6: Any fee or charge payable to the Commission is recoverable by the Commission in any court of competent jurisdiction as a debt due to the Commission.
7: If the regulations authorise the Commission under subsection (4),—
a: an instrument by which the Commission grants a refund or waiver is secondary legislation ( see Part 3
b: the regulations must contain a statement to that effect. 2021 No 13 s 153 The following table is small in size and has 3 columns that are grouped under the heading Legislation Act 2019 requirements for secondary legislation referred to in subsection (3). Legislation Act 2019 requirements for secondary legislation referred to in subsection (3) Publication PCO must publish it on the legislation website and notify it in the Gazette LA19 s 69(1)(c) Presentation The Minister must present it to the House of Representatives LA19 s 114 Disallowance It may be disallowed by the House of Representatives LA19 ss 115 116 This note is not part of the Act. The following table is small in size and has 3 columns that are grouped under the heading Legislation Act 2019 requirements for secondary legislation referred to in subsection (7). Legislation Act 2019 requirements for secondary legislation referred to in subsection (7) Publication The maker must publish it in accordance with the Legislation (Publication) Regulations 2021 LA19 ss 69 73 74(1)(aa) Presentation The Minister must present it to the House of Representatives, unless it is excluded by section 114(2) LA19 s 114 Disallowance It may be disallowed by the House of Representatives, unless it is excluded by section 115 LA19 ss 115 116 This note is not part of the Act.


Crown Pastoral Land Reform Act 2022

1: Title
This Act is the Crown Pastoral Land Reform Act 2022.
2: Commencement
1: The following provisions come into force on the day after the date on which this Act receives the Royal assent:
a: section 9
b: section 17 Schedule 1
c: section 17 Schedule 2
d: section 18 Schedule 3
2: The rest of this Act comes into force 6 months after the date on which it receives the Royal assent.
1: Amendments to Crown Pastoral Land Act 1998
3: Principal Act
This Part amends the Crown Pastoral Land Act 1998 2022-05-18 Crown Pastoral Land Act 1998 Section 9, 17, 18 and Schedules 1,2, and 3 —see s 2(1)(a), (b), (c) and (d) 2022-11-17 Crown Pastoral Land Act 1998 The rest of the Act—see s 2(2)
4: Long Title repealed
Repeal the Long Title.
5: New section 1A inserted (Purpose)
After section 1
1A: Purpose
The purpose of this Act is to provide for the administration of pastoral land in a way that seeks to achieve the following outcomes:
a: maintaining or enhancing inherent values across the Crown pastoral estate for present and future generations, while providing for ongoing pastoral farming of pastoral land:
b: supporting the Crown in its relationships with Māori under te Tiriti o Waitangi/the Treaty of Waitangi:
c: enabling the Crown to get a fair return on its ownership interest in pastoral land.
6: Section 2 amended (Interpretation)
1: In section 2 chief executive discretionary pastoral activity section 10 effect
a: includes the following effects, regardless of the scale, intensity, duration, or frequency of the effect:
i: any positive or adverse effect:
ii: any temporary or permanent effect:
iii: any past, present, or future effect:
iv: any cumulative effect which arises over time or in combination with other effects; and
b: includes any potential effect of high probability; and
c: includes any potential effect of low probability which has a high potential impact permitted pastoral activity section 10 prohibited pastoral activity Surveyor-General te Tiriti o Waitangi/the Treaty of Waitangi
2: In section 2 inherent value inherent value
a: means a value that arises from an ecological, a landscape, a cultural, a heritage, or a scientific attribute or characteristic of a natural resource that—
i: is in or forms part of the land or exists by virtue of the natural character of the land; or
ii: relates to a historic place on or forming part of the land; but
b: does not include a pastoral farming activity
3: In section 2 Chief Surveyor
7: New section 2A inserted (Transitional, savings, and related provisions)
After section 2
2A: Transitional, savings, and related provisions
The transitional, savings, and related provisions set out in Schedule 1AA
8: Part 1 replaced
Replace Part 1
1: Pastoral leases and occupation licences
1: Outcomes, activities on pastoral land, and decision-making process
Outcomes
4: Outcomes for decision makers
1: All persons performing or exercising the Crown’s functions, duties, or powers in relation to pastoral land under this Act or the Land Act 1948 must seek to achieve the following:
a: maintaining or enhancing inherent values across the Crown pastoral estate for present and future generations, while providing for ongoing pastoral farming of pastoral land; and
b: supporting the Crown in its relationships with Māori under te Tiriti o Waitangi/the Treaty of Waitangi; and
c: enabling the Crown to get a fair return on its ownership interest in pastoral land.
2: Subsection (1)(c)
5: Māori interests
1: In order to recognise and respect the Crown’s responsibility to give effect to the principles of te Tiriti o Waitangi/the Treaty of Waitangi, the Crown—
a: must recognise and provide for the relationship of Māori and their culture and traditions with their ancestral lands, water, mahinga kai, wāhi tapu, and other taonga in any case where—
i: consent for a discretionary pastoral activity is sought; or
ii: a commercial recreation permit over pastoral land is sought; or
iii: an easement over pastoral land is sought; or
iv: a stock limitation exemption or a variation or revocation of a stock limitation exemption is sought (except a grant, variation, or revocation made under section 15(4)
v: a protective mechanism is being considered; and
b: must consult the relevant iwi listed in subsection (2) sections 22A, 22C, 100O, 100P, 100R, and 100S
2: The relevant iwi
a: Ngāi Tahu Whānui as represented by Te Runanga o Ngai Tahu in accordance with Te Runanga o Ngai Tahu Act 1996:
b: Ngāti Apa ki te Rā Tō:
c: Ngāti Kōata:
d: Ngāti Kuia:
e: Ngāti Rārua:
f: Ngāti Tama ki Te Tau Ihu:
g: Ngāti Toa Rangātira:
h: Rangitāne o Wairau:
i: Te Ātiawa o Te Waka-a-Māui. Classification of activities on pastoral land
6: Classification of pastoral activities on pastoral land
1: Pastoral activities described in section 7 or 8 Schedule 1AB
2: A lessee or licensee of pastoral land must obtain the Commissioner’s consent to undertake a pastoral activity if required by section 7 or 8
3: The following classifications apply to pastoral activities on pastoral land:
a: permitted pastoral activities that may be undertaken on pastoral land with any necessary permission under any other enactment ( see section 20 Part 1 of Schedule 1AB
b: discretionary pastoral activities that may be undertaken on pastoral land only with the consent of the Commissioner under section 10 see section 20 Part 2 of Schedule 1AB
c: prohibited activities that must not be undertaken on pastoral land and may not be applied for or consented to ( see Part 3 of Schedule 1AB
4: Any question arising as to the class within which any pastoral activity falls must be decided by the Commissioner, whose decision is final, and sections 17 and 18 of the Land Act 1948 do not apply to that decision.
5: Schedule 1AB see section 100O Provision relating to burning
7: Burning of vegetation
1: This section applies to any pastoral activity that involves burning any vegetation on the land (whether felled or not).
2: A lessee or licensee of pastoral land—
a: may undertake the pastoral activity, or cause it to be undertaken, if the activity is classified as a permitted pastoral activity in Part 1 of Schedule 1AB
b: must not undertake the pastoral activity, or cause it to be undertaken, without the Commissioner’s consent under section 10 Part 2 of Schedule 1AB
c: must not undertake the pastoral activity, or cause it to be undertaken, if the activity is classified as a prohibited pastoral activity in Part 3 of Schedule 1AB
3: In this section, vegetation Provisions relating to disturbance of soil
8: Activities affecting or disturbing soil
1: This section applies to any pastoral activity that affects or disturbs the soil of pastoral land.
2: A lessee or licensee of pastoral land—
a: may undertake the pastoral activity, or cause it to be undertaken, if the activity is classified as a permitted pastoral activity in Part 1 of Schedule 1AB
b: must not undertake the pastoral activity, or cause it to be undertaken, without the Commissioner’s consent under section 10 Part 2 of Schedule 1AB
c: must not undertake the pastoral activity, or cause it to be undertaken, if the activity is classified as a prohibited pastoral activity in Part 3 of Schedule 1AB
3: Any ongoing maintenance authorised by a consent under section 10
4: A consent under section 10
a: ongoing maintenance of the works formed by the activity:
b: ongoing programme to maintain the pasture created or enhanced by the activity.
5: Anything done under the consent is subject to every condition, direction, and restriction that forms part of the Commissioner’s consent.
6: For the purposes of this section (but not subsection (1) section 106 108 section 10
7: This section does not forbid or prevent the doing of anything authorised—
a: by or under the Public Works Act 1981 Crown Minerals Act 1991
b: under the Mining Act 1971
8: Nothing in this section limits or affects the application or effect of section 100 Process for applications to undertake activities on pastoral land
9: Application process
1: An applicant who applies for consent to undertake a discretionary pastoral activity or for the grant of a commercial recreation permit under section 66A of the Land Act 1948 must provide sufficient information to enable the Commissioner to assess the application under sections 10 to 12 and Schedule 1ABA
2: The Commissioner may decline to accept an application if the Commissioner thinks that the information provided with the application is insufficient or, alternatively, may obtain further information that the Commissioner thinks necessary to assess the application under sections 10 to 12 and Schedule 1ABA
3: When assessing an application, the Commissioner may obtain any advice the Commissioner thinks necessary in order to make a decision under section 10 Process for Commissioner’s decision
10: Commissioner’s decision
1: This section applies if the Commissioner accepts an application under section 9
2: The Commissioner must, in accordance with this section and (as applicable) sections 11 and 12 and Schedule 1ABA
a: either—
i: decline to grant the application; or
ii: grant the application wholly or in part, with or without any conditions, limitations, directions, or restrictions that the Commissioner thinks necessary, including for the purpose of reducing the adverse effects on inherent values; and
b: if they grant the application, specify the period within which the activity must be carried out.
3: Before making a decision, the Commissioner must consult the Director-General of Conservation.
4: In deciding whether to grant an application, the Commissioner—
a: must be satisfied that—
i: the inherent values likely to be affected by the proposed activity and the importance of those values have been identified; and
ii: the level of adverse effects of the proposed activity on those inherent values (with regard to the importance of those values) has been identified, including whether the effects could be avoided, remedied, or mitigated; and
iii: any reasonable alternative to the proposed activity that has lesser adverse effects on inherent values has been considered; and
b: must not consider offsetting, including as a way of counterbalancing adverse effects on inherent values, when determining the level of adverse effects on inherent values; and
c: may consider relevant Government policy decided by Cabinet, in particular policy that relates to national directions (such as national policy statements and national environmental standards); and
d: may consider any plan for the management of part or all of the land subject to the reviewable lease or licence; and
e: may consider cross-boundary effects of the activity on neighbouring persons or on any neighbouring land (whether or not the land is subject to a pastoral lease or any other form of tenure); and
f: may consider New Zealand’s commitment to reducing greenhouse gas emissions, where this is consistent with the outcomes stated in this Act; and
g: may consider any other matter the Commissioner considers relevant to determine the application.
5: Nothing in this section requires the Commissioner to consent to a proposed discretionary pastoral activity in any case.
6: In this section and sections 11, 12, and 15 grant
a: in relation to an application for a discretionary pastoral activity, means to consent to the activity:
b: in relation to an application for a commercial recreation permit, means to grant the permit:
c: in relation to an application for an exemption from a stock limitation or the variation or revocation of an exemption, means to grant, vary, or revoke the exemption ( see section 15
11: Decision-making criteria: consent for discretionary pastoral activity
1: The Commissioner decides whether to grant an application as follows:
a: they may decline the application if satisfied that there is a reasonable alternative to the proposed activity that has lesser adverse effects on inherent values:
b: they may grant the application if they decide that the proposed activity has no more than minor adverse effects on inherent values after actions have been taken to avoid, remedy, or mitigate the effects:
c: they must decline the application if they—
i: decide that the proposed activity has more than minor adverse effects on inherent values after actions have been taken to avoid, remedy, or mitigate the effects; and
ii: are not satisfied under subsections (2) and (3)
d: they may grant the application if they—
i: decide that the proposed activity has more than minor adverse effects on inherent values after actions have been taken to avoid, remedy, or mitigate the effects; and
ii: are satisfied under subsections (2) and (3)
2: Before granting an application for a proposed activity that has more than minor adverse effects on inherent values, the Commissioner must be satisfied that the activity is necessary to enable the lessee or licensee to exercise their rights and obligations under their lease or licence, taking into account 1 or more of the criteria set out in Schedule 1ABA
3: For the purpose of deciding whether the activity is necessary to enable the lessee or licensee to exercise their rights and obligations under their lease or licence, the Commissioner may consider any economic benefits associated with undertaking that activity only to the extent that those benefits relate to the ongoing financial viability of the pastoral farming enterprise.
12: Decision-making criteria: grant of commercial recreation permit
1: The Commissioner decides whether to grant an application for a commercial recreation permit as follows:
a: they may decline the application if satisfied that there is a reasonable alternative to the proposed activity that has lesser adverse effects on inherent values:
b: they may grant the application if they decide that the proposed activity has no more than minor adverse effects on inherent values after actions have been taken to avoid, remedy, or mitigate the effects:
c: they must decline the application if they—
i: decide that the proposed activity has more than minor adverse effects on inherent values after actions have been taken to avoid, remedy, or mitigate the effects; and
ii: are not satisfied under subsection (2)
d: they may grant the application if they—
i: decide that the proposed activity has more than minor adverse effects on inherent values after actions have been taken to avoid, remedy, or mitigate the effects; and
ii: are satisfied under subsection (2)
2: Before granting an application under subsection (1)(d)
a: is an existing activity that—
i: previously has been allowed to be undertaken on the pastoral land under a commercial recreation permit or other consent, right, or licence granted by the Commissioner; and
ii: uses existing infrastructure or buildings previously consented to by the Commissioner; or
b: will use existing infrastructure or buildings previously consented to by the Commissioner, even though the proposed activity is different from the activity for which that previous consent was granted; or
c: is necessary in order to enable the continued use of existing infrastructure or buildings previously consented to by the Commissioner.
2: Tenure and related provisions
Pastoral leases
13: Tenure
A pastoral lease gives the holder—
a: the exclusive right of pasturage over the land:
b: a perpetual right of renewal for terms of 33 years:
c: no right to the soil:
d: no right to acquire the fee simple of any of the land.
14: Term
The term of a pastoral lease expires on the expiration of 33 years from 1 January or 1 July (whichever is the sooner) next following its commencement.
15: Stock limitations
1: The repeal of section 66
a: the validity or effect of any stock limitation:
b: the validity or effect of any power of the Commissioner contained in any pastoral lease to grant an exemption from a stock limitation:
c: the validity or effect of any such exemption:
d: the Commissioner's power to vary or revoke such an exemption.
2: An exemption from a stock limitation—
a: is (and was) personal to the person who was the holder of the lease concerned at the time the exemption was granted; and
b: if not earlier revoked, expires (or expired) when that person ceases (or ceased) to be the holder of the lease.
3: Sections 9 to 11 subsection (4)
4: The Commissioner may, at the time that or as soon as practicable after a lease is transferred under section 89 of the Land Act 1948, grant, vary, or revoke an exemption from a stock limitation that provides for stock numbers and types equal to, or lower than, the previous holder’s exemption, after considering—
a: whether the lessee is capable of managing the number of stock that the previous lessee had on the lease; and
b: whether the land in its current state is capable of sustaining the number and types of stock in the previous exemption; and
c: other relevant matters.
5: Subsection (2)
6: Subsections (1) to (4)
16: Renewal of lease after expiry
1: Subsection (2)
a: the Commissioner and the holder had agreed that, subject to the fixing of the amount of the rent to be paid under it, it would be renewed; but
b: that amount had not yet been fixed.
2: The Commissioner may grant a renewal of the lease to the same extent, and in the same manner, as if it had not expired, but the renewal takes effect from its expiry.
17: Belated exchange of pastoral leases for reviewable leases
1: Subsection (2)
a: before the commencement of this Act, any land comprised in a pastoral lease was vested in a State enterprise under the State-Owned Enterprises Act 1986
b: before the land was vested,—
i: all the land comprised in that lease had been reclassified as farm land; and
ii: the former Land Settlement Board, the Department of Lands, or the Commissioner had agreed to issue a reviewable lease to the holder under section 126A
iii: no reviewable lease had in fact been issued; and
c: since the land was vested, the holder has (or successive holders have) been paying rent as if the land were held on reviewable lease.
2: The Commissioner may, under the Land Act 1948 section 126A
3: If a reviewable lease is granted under subsection (2)
a: it is deemed to have been granted under section 126A
b: the Land Act 1948
c: every transfer of or other dealing with or activity that affects the pastoral lease in exchange for which it has been granted, and that occurs after the agreement to grant a reviewable lease in exchange for it, is deemed to have had effect as a transfer of or other dealing with or activity that affects it.
4: The granting of a reviewable lease under subsection (2) section 24 Occupation licences
18: Tenure
An occupation licence gives the holder the exclusive right of pasturage over the land, but—
a: no right of renewal:
b: no right to the soil:
c: no right to acquire the fee simple of the land.
19: Term and expiry
1: The full term of an occupation licence granted under section 66AA of the Land Act 1948 commences on its commencement, and is the sum of—
a: the term specified in it; and
b: the period commencing on its commencement and ending on the next 1 January or 1 July (whichever is the sooner).
2: Unless earlier forfeited or surrendered, an occupation licence expires on the expiration of its full term. Permission under other enactments
20: Permission under other enactments still needed
1: This section applies if—
a: any other enactment provides that a person must obtain permission under that enactment before undertaking an activity that is contrary to that enactment; and
b: the activity concerned is a permitted pastoral activity or discretionary pastoral activity, or is authorised by a stock limitation exemption, under this Act.
2: Nothing in this section prevents the Commissioner from consenting to a discretionary pastoral activity applied for under section 9
3: However, the authority conferred by this Act to undertake a permitted pastoral activity or discretionary pastoral activity, or an activity authorised by a stock limitation exemption, does not in itself allow the person to undertake the activity without the required permission under the other enactment.
4: In subsection (1) permission Provisions relating to boundaries and stock movement
21: Boundary disputes
Every dispute between the holders of adjacent pastoral land as to the boundary between them must be determined by the Commissioner or a person appointed by the Commissioner for the purpose.
22: Boundary adjustments
For the purpose of securing more suitable boundaries of pastoral land held under lease or licence, the Commissioner may, as from a specified day, exclude part of it from the lease or licence and include it in some other lease or licence; and in that case the Commissioner may make any adjustments in rents payable that the Commissioner thinks just and equitable.
3: Monitoring, strategic intentions, and reporting
Monitoring
22A: Chief executive to prepare monitoring framework
1: The chief executive must—
a: prepare, regularly update, and make available to the public a framework (the monitoring framework
b: regularly report on performance against the monitoring framework in relation to the purpose of this Act and those stewardship responsibilities.
2: In developing the monitoring framework, the chief executive must—
a: consult relevant iwi and representatives of lessees and licensees of pastoral land; and
b: publish the draft monitoring framework on the department’s Internet site and invite the public to give or send their written submissions on the draft document before it is finalised.
3: The first monitoring framework must be prepared and made available to the public not later than 18 months after this section comes into force.
22B: Commissioner to monitor compliance by holders of reviewable leases or licences
The Commissioner must monitor the compliance by—
a: holders of reviewable leases or licences of their obligations under their leases or licences, stock limitation exemptions under section 15 section 10
b: any person granted an easement (under section 60(1) of the Land Act 1948) or a commercial recreation permit (under section 66A of that Act) over pastoral land of their obligations under the easement or commercial recreation permit. Crown’s pastoral land strategic intentions document and reporting requirements
22C: Strategic intentions document
1: The chief executive and the Commissioner must prepare a document setting out the Crown’s pastoral land strategic intentions (the strategic intentions document
2: The strategic intentions document must set out—
a: how the chief executive and the Commissioner propose to perform or exercise their relevant statutory functions, duties, and powers in relation to pastoral land; and
b: how Government policies and priorities will be reflected in the management of pastoral land (to the extent they are consistent with relevant legislation); and
c: relevant key performance indicators to demonstrate how the performance or exercise of the functions, duties, and powers is contributing to achieving the outcomes stated in section 4
3: The strategic intentions document must be updated at least once every 5 years, or sooner at the request of the Minister.
4: In developing the strategic intentions document, the chief executive or the Commissioner must—
a: consult relevant iwi and representatives of lessees and licensees of pastoral land; and
b: publish the draft strategic intentions document on the department’s Internet site and invite the public to give or send their written submissions on the draft document before it is finalised.
5: The chief executive and the Commissioner must report annually to the Minister on progress against the strategic intentions document and the chief executive must include that report into the department’s annual report.
6: The first strategic intentions document must be prepared and made available to the public not later than 18 months after this section comes into force.
22D: Commissioner must report summary of certain decisions
1: The Commissioner must publish on the department’s Internet site, as soon as practicable after it is made, a detailed summary of—
a: every decision of the Commissioner under this Act or the Land Act 1948 that relates to the use of pastoral land (including a decision that relates to a lease, a licence, a commercial recreation permit, an easement, or an exemption from a stock limitation), other than a decision subject to a rehearing under section 17 of the Land Act 1948; and
b: every decision of the Commissioner that determines an application for a rehearing under section 17 of the Land Act 1948 (including a decision not to grant a rehearing) of a decision on an application to undertake a discretionary pastoral activity, and the original decision to which the application for a rehearing relates.
2: The summary should set out details of—
a: what the decision relates to; and
b: what the decision enables or does not enable (including any conditions imposed by the decision); and
c: the reasons for the decision.
3: The Commissioner must, as soon as practicable, publish on the department’s Internet site a summary of enforcement decisions that sets out the nature of the non-compliance and the reasons for taking enforcement action.
4: The Commissioner may defer or dispense with publication of a matter under this section (in whole or in part) if satisfied on reasonable grounds that good reason for withholding the publication would exist under the Official Information Act 1982.
5: For the purposes of subsection (3) enforcement decision
a: section 100A
b: section 100B
c: section 100I
d: section 100N
4: Application of Land Act 1948
23: Application of Land Act 1948 to this Part
Except as provided in this Part
9: Part 2 repealed
Repeal Part 2
10: Section 83 amended (Objects of Part 3)
In section 83(b) inherent values , including recreational values,
11: Section 84 amended (Matters to be taken into account by Commissioner)
Replace section 84(a)
a: the outcomes stated in section 4
12: Section 86 amended (Commissioner to review certain Crown land)
1: Replace section 86(5)
5: The land (or various areas of it) must be designated as—
a: land to be retained in full Crown ownership and control—
i: as a conservation area; or
ii: as a reserve, to be held for a purpose specified in the proposal; or
iii: for some specified Crown purpose; or
iv: as Crown land without classification; or
v: as a different classification of Crown land under section 51 of the Land Act 1948; or
b: land that may be added to an existing pastoral lease or leased under a new pastoral lease, but only if the land is already classified as pastoral land; or
c: land that may be added to an existing special lease or leased under a new special lease; or
d: land that may be disposed of in fee simple under the Land Act 1948 unencumbered or subject to any covenants or easements (or both) specified in the proposal.
2: After section 86(7)
8: If a preliminary proposal designates any land as land that may be leased under a new pastoral lease, the lease may be on any terms that the Commissioner thinks fit, except that—
a: section 4
b: the rental must be set in accordance with Part 1A.
9: The ability to grant a new pastoral lease in accordance with this section applies despite anything to the contrary in the Land Act 1948.
13: New section 87A inserted (Approval of Minister needed for some designations)
After section 87
87A: Approval of Minister needed for some designations
1: The Commissioner must obtain the written consent of the Minister before a preliminary proposal or substantive proposal designates pastoral land as land to be—
a: added to an existing pastoral lease or special lease; or
b: leased by a new pastoral lease or special lease; or
c: reclassified as another form of Crown land; or
d: disposed of in fee simple.
2: The Minister must not consent provisionally to a designation described in subsection (1)
14: Section 90 amended (Certain provisions of Part 2 relating to substantive proposals to apply)
In section 90(2)(b) Chief Surveyor Surveyor-General
15: Section 99 amended (Commissioner to meet certain official costs)
In section 99 a Chief Surveyor the Surveyor-General
16: New Part 4A inserted
After Part 4
4A: Miscellaneous provisions
Recovery of remedial costs
100A: Costs of remedial action
1: The Commissioner may recover as a debt due to the Crown the actual and reasonable costs of any remedial action taken to remedy or adequately mitigate a notified breach or alleged breach by a person of—
a: their obligations under a reviewable instrument; or
b: a consent to undertake a discretionary pastoral activity, a commercial recreation permit, or a grant, variation, or revocation of an exemption from a stock limitation.
2: For the purposes of this section, a breach or an alleged breach is notified to a person if the Commissioner gives the person a written notice that states—
a: the breach or alleged breach; and
b: the remedial action or mitigation that the Commissioner requires the person to take; and
c: the period within which the Commissioner requires that remedial action or mitigation to be undertaken.
3: Notice of a breach or an alleged breach must not be served on a person unless the Commissioner has reasonable grounds for believing that the breach has occurred.
4: For the purpose of carrying out any remedial action on any pastoral land held on lease or licence, the Commissioner or any person authorised by them in writing has, at all reasonable times, free rights of ingress, egress, and regress, in respect of that land and all the powers necessary to take the remedial action. Enforceable undertakings
100B: Commissioner may accept enforceable undertakings
1: The Commissioner may accept an enforceable written undertaking, in a form, or containing the information, prescribed by regulations made under this Act (if any), given by a person in connection with a matter relating to a breach or an alleged breach by the person of—
a: their obligations under a reviewable instrument; or
b: a consent to undertake a discretionary pastoral activity, a commercial recreation permit, or a grant, variation, or revocation of an exemption from a stock limitation.
2: The giving of an enforceable undertaking does not constitute an admission of guilt by the person giving it in relation to the breach or alleged breach to which the undertaking relates.
3: The person may withdraw or vary the undertaking with the consent of the Commissioner.
4: If the Commissioner considers that the person is in breach of an undertaking, the Commissioner may apply to the court under section 100N section 100N(2) to (6)
100C: Commissioner must give notice of decision and reasons
The Commissioner must give a person who is seeking to make an enforceable undertaking written notice of—
a: their decision to accept or reject the undertaking; and
b: the reasons for the decision. Infringement offences
100D: Infringement offences
1: A person commits an infringement offence against this Act if the person—
a: undertakes without a consent under section 7
b: undertakes without a consent under section 8
c: contravenes a stock limitation or an exemption from a stock limitation ( see sections 10 and 15
d: undertakes without a commercial recreation permit under section 66A of the Land Act 1948 an activity on pastoral land that requires a commercial recreation permit under that section; or
e: undertakes without a consent under section 100 of the Land Act 1948 (preservation of timber) an activity on pastoral land that requires a consent under that section.
2: For the purposes of subsection (1)(a), (b), (d), and (e)
100E: Proceedings for infringement offences
1: A person who is alleged to have committed an infringement offence against this Act or regulations made under this Act may—
a: be proceeded against by the filing of a charging document under section 14
b: be served with an infringement notice under section 100I
2: Proceedings commenced in the way described in subsection (1)(a)
3: See
100F: Who may issue infringement notices
1: The chief executive may, by a written warrant evidencing the appointment, authorise an employee of the department (an authorised person
2: Production of the warrant is, in the absence of proof to the contrary, conclusive evidence of the appointment.
100G: When infringement notice may be issued
An authorised person may issue an infringement notice to a person if the authorised person believes on reasonable grounds that the person is committing, or has committed, an infringement offence.
100H: Revocation of infringement notice before payment made
1: An authorised person may revoke an infringement notice before—
a: the infringement fee is paid; or
b: an order for payment of a fine is made or deemed to be made by a court under section 21 of the Summary Proceedings Act 1957.
2: The authorised person must take reasonable steps to ensure that the person to whom the notice was issued is made aware of the revocation of the notice.
3: The revocation of an infringement notice before the infringement fee is paid is not a bar to any further action as described in section 100E(1)(a) or (b)
100I: What infringement notice must contain
An infringement notice must be in the form prescribed in regulations made under section 100R
a: details of the alleged infringement offence that fairly inform a person of the time, place, and nature of the alleged offence:
b: the amount of the infringement fee:
c: the address of the place at which the infringement fee may be paid:
d: how the infringement fee may be paid:
e: the time within which the infringement fee must be paid:
f: a summary of the provisions of section 21(10) of the Summary Proceedings Act 1957:
g: a statement that the person served with the notice has a right to request a hearing:
h: a statement of what will happen if the person served with the notice neither pays the infringement fee nor requests a hearing:
i: any other matters prescribed in regulations made under section 100R
100J: How infringement notice may be served
1: An infringement notice may be served on the person who the authorised person believes is committing or has committed the infringement offence by—
a: delivering it to the person or, if the person refuses to accept it, bringing it to the person’s notice; or
b: leaving it for the person at the person’s last known place of residence with another person who appears to be of or over the age of 14 years; or
c: leaving it for the person at the person’s place of business or work with another person; or
d: sending it to the person by prepaid post addressed to the person’s last known place of residence or place of business or work; or
e: sending it to an electronic address of the person in any case where the person does not have a known place of residence or business in New Zealand.
2: Unless the contrary is shown,—
a: an infringement notice (or a copy of it) sent by prepaid post to a person under subsection (1)
b: an infringement notice sent to a valid electronic address is to be treated as having been served at the time the electronic communication first entered an information system that is outside the control of the department.
100K: Reminder notices
A reminder notice must be in the prescribed form, and must include the same particulars, or substantially the same particulars, as the infringement notice.
100L: Payment of infringement fees
All infringement fees paid in respect of infringement offences must be paid into a Crown Bank Account.
100M: Penalties for infringement offences
A person who commits an infringement offence is liable to—
a: the infringement fee prescribed in regulations for that offence; or
b: a fine imposed by a court not exceeding the maximum fine prescribed in regulations for that offence. Breaches relating to reviewable instruments
100N: Breaches of statutory or contractual provisions
1: The Commissioner may apply to the District Court for the examination of anything the Commissioner alleges to be a breach of a reviewable instrument committed after the commencement of this section.
2: If satisfied on application under subsection (1)
a: order the holder—
i: to take actions (specified by the court) to remedy the breach; or
ii: in default of taking those actions, to pay to the Commissioner exemplary damages (not exceeding $50,000) for the breach; or
b: (without declaring the instrument forfeit) order the holder to pay to the Commissioner exemplary damages (not exceeding $50,000) for the breach if, and only if,—
i: it is impossible, impracticable, or otherwise inappropriate to remedy the breach; or
ii: the breach has already been remedied; or
c: declare the instrument forfeit to the Crown, and order the holder to pay to the Commissioner an amount being, as seems appropriate to the court,—
i: the lower of $50,000 and the likely costs to the Crown of remedying the breach; or
ii: exemplary damages (not exceeding $50,000) for the breach.
3: The District Court must not make an order under subsection (2)(c) subsection (1)
a: has been given notice of the application; and
b: has had an adequate opportunity to appear and be heard in relation to it.
4: Sections 244 to 257 of the Property Law Act 2007 are not available in respect of a forfeiture under subsection (2)(c)
5: Section 105
6: In this section, breach
a: contravenes section 100 section 7, 8, or 9
b: contravenes any provision of or covenant contained in the instrument. Further provisions relating to activities and regulations
100O: Power to amend Schedule 1AB
1: The Governor-General may, by Order in Council made on the recommendation of the Minister, amend, replace, or delete any of the items or definitions in Schedule 1AB
2: The Minister may make a recommendation under subsection (1) subsections (3) to (7)
3: Only activities that are described in sections 7 to 9
4: Activities remain as discretionary pastoral activities unless they meet the criteria for permitted pastoral activities or prohibited pastoral activities.
5: An activity may be classified as a permitted pastoral activity only if the Minister is satisfied it meets the following criteria:
a: the pastoral activity must have no more than minor effects on inherent values in all reasonably foreseeable circumstances, which include the possible effects of the activity in all possible locations across the Crown pastoral estate; and
b: the activity must—
i: be required for pastoral farming; or
ii: contribute to the lessee or licensee meeting their obligations under section 99 of the Land Act 1948, or the maintenance or enhancement of inherent values.
6: An activity may be classified as a prohibited pastoral activity only if the Minister is satisfied that—
a: the activity will not impact unduly on a lessee’s or licensee’s ability to exercise their rights and obligations under their lease or licence in any reasonably foreseeable circumstances; and
b: the activity would be likely to cause significant loss of inherent values that cannot be avoided in all reasonably foreseeable circumstances.
7: The Minister must not recommend the making of an Order in Council under this section unless—
a: the Minister has consulted the Minister of Agriculture and the Minister of Conservation; and
b: the Minister is satisfied that the chief executive or the Commissioner has—
i: consulted relevant iwi and representatives of lessees and licensees of pastoral land; and
ii: published a notice of the proposed recommendation on the department’s Internet site and invited the public to give or send their written submissions on the proposed recommendation before it is finalised.
8: To avoid doubt, no change in the classification of a pastoral activity made by an Order in Council under this section affects the terms or conditions of any consent to undertake a discretionary pastoral activity or commercial recreation permit that has effect when the order takes effect.
9: An Order in Council made under this section is secondary legislation ( see The following table is small in size and has 3 columns that are grouped under the heading Legislation Act 2019 requirements for secondary legislation made under this section. Legislation Act 2019 requirements for secondary legislation made under this section Publication PCO must publish it on the legislation website and notify it in the Gazette LA19 s 69(1)(c) Presentation The Minister must present it to the House of Representatives LA19 s 114 Disallowance It may be disallowed by the House of Representatives LA19 ss 115 116 This note is not part of the Act.
100P: Power to amend Schedule 1ABA
1: The Governor-General may, by Order in Council made on the recommendation of the Minister, amend, replace, or revoke any provision in Schedule 1ABA
2: The Minister may make a recommendation under subsection (1) subsection (3)
3: The Minister must not recommend the making of an Order in Council under this section unless the Minister is satisfied that the chief executive or the Commissioner has—
a: consulted relevant iwi and representatives of lessees and licensees of pastoral land; and
b: published a notice of the proposed recommendation on the department’s Internet site and invited the public to give or send their written submissions on the proposed recommendation before it is finalised.
4: An Order in Council made under this section is secondary legislation ( see The following table is small in size and has 3 columns that are grouped under the heading Legislation Act 2019 requirements for secondary legislation made under this section. Legislation Act 2019 requirements for secondary legislation made under this section Publication PCO must publish it on the legislation website and notify it in the Gazette LA19 s 69(1)(c) Presentation The Minister must present it to the House of Representatives LA19 s 114 Disallowance It may be disallowed by the House of Representatives LA19 ss 115 116 This note is not part of the Act.
100Q: Chief executive to review Schedule 1AB
1: The chief executive must review Schedule 1AB
2: Following the review, the chief executive must advise the Minister on any recommended changes to Schedule 1AB
100R: Regulations
1: The Governor-General may, by Order in Council made on the recommendation of the Minister, make regulations providing for 1 or more of the following purposes:
a: prescribing the information required to be provided with an application for consent to undertake a discretionary pastoral activity or for the grant of a commercial recreation permit or stock limitation exemption (for example, the description and location of the pastoral activity, the inherent values affected, and mitigation):
b: prescribing matters the Commissioner must take into account in deciding the level of adverse effects of a pastoral activity or commercial recreation permit activity, or a stock limitation exemption, on inherent values:
c: prescribing the form and content of farm plans that may be considered under section 10(4)(d)
d: prescribing fees or charges payable for applications for consent to undertake discretionary pastoral activities or applications for the grant of a commercial recreation permit or stock limitation exemption:
e: prescribing the form of, or the information that must be contained in or accompany, an enforceable undertaking under section 100B
f: prescribing infringement offences for the contravention of regulations made under this Act:
g: prescribing penalties for infringement offences against this Act or regulations made under this Act, which,—
i: in the case of infringement fees, must not be more than $1,000; and
ii: in the case of maximum fines, must not be more than twice the amount of the infringement fee for the offence:
h: prescribing the form of infringement notices and infringement offence reminder notices:
i: requiring persons to collect information and supply the information to the chief executive or the Commissioner for the purpose of this Act:
j: providing for any other matters contemplated by this Act, necessary for its administration, or necessary for giving it full effect.
2: The power to prescribe fees or charges includes the power to prescribe any of the following:
a: the method by which the fees or charges are to be assessed, which may (without limitation) include a general charge and actual and reasonable costs in respect of a discretionary pastoral activity:
b: the persons liable to pay the fees or charges:
c: when the fees or charges must be paid:
d: the circumstances in which the fees or charges may be refunded, remitted, or waived (wholly or partly).
3: Fees and charges are a debt due to the Crown and may be recovered by the chief executive or the Commissioner (on behalf of the Crown) in any court of competent jurisdiction.
4: The Minister must not recommend the making of regulations under this section unless the Minister is satisfied that the chief executive or the Commissioner has—
a: consulted relevant iwi, representatives of lessees and licensees of pastoral land, and the Director-General of Conservation; and
b: published a notice of the proposed recommendation on the department’s Internet site and invited the public to give or send their written submissions on the proposed recommendation before it is finalised.
5: Regulations made under this section are secondary legislation ( see The following table is small in size and has 3 columns that are grouped under the heading Legislation Act 2019 requirements for secondary legislation made under this section. Legislation Act 2019 requirements for secondary legislation made under this section Publication PCO must publish it on the legislation website and notify it in the Gazette LA19 s 69(1)(c) Presentation The Minister must present it to the House of Representatives LA19 s 114 Disallowance It may be disallowed by the House of Representatives LA19 ss 115 116 This note is not part of the Act.
100S: Chief executive or Commissioner may set standards and issue directives
1: The Commissioner may set standards and issue directives in relation to the administration of pastoral land and its inherent values, including monitoring the state of the land.
2: The chief executive may set standards and issue directives in relation to the framework for determining applications for discretionary pastoral consents, commercial recreation permits, or stock limitation exemptions.
3: The chief executive or the Commissioner must not set a standard or issue a directive unless one of them has—
a: consulted relevant iwi, representatives of lessees and licensees of pastoral land, and the Director-General of Conservation; and
b: published the draft standard or directive on the department’s Internet site and invited the public to give or send their written submissions on the draft document before it is finalised.
4: A standard or directive is secondary legislation ( see The following table is small in size and has 3 columns that are grouped under the heading Legislation Act 2019 requirements for secondary legislation made under this section. Legislation Act 2019 requirements for secondary legislation made under this section Publication The maker must publish it in accordance with the Legislation (Publication) Regulations 2021 LA19 s 74(1)(aa) Presentation The Minister must present it to the House of Representatives LA19 s 114 Disallowance It may be disallowed by the House of Representatives LA19 ss 115 116 This note is not part of the Act.
17: New Schedules 1AA, 1AB, 1ABA, and 1AC inserted
1: Insert the Schedule 1AA set out in Schedule 1 of this Act as the first schedule to appear after the last section of the principal Act.
2: After Schedule 1AA, insert the Schedules 1AB, 1ABA, and 1AC set out in Schedule 2
18: Consequential amendments
Amend the principal Act as set out in Schedule 3
2: Amendments to Land Act 1948
19: Principal Act
This Part amends the Land Act 1948 2022-11-17 Land Act 1948 see section 2(2)
20: Section 17 amended (Application for rehearing)
After section 17(2)
3: This section applies with the necessary modifications if a person is aggrieved by any decision of the Commissioner under the Crown Pastoral Land Act 1998.
21: Section 24 amended (Powers and duties of Commissioners)
1: After section 24(1)(i)
ia: to support the New Zealand Walking Access Commission as far as practicable in meeting its public access objective where that relates to pastoral land:
2: After section 24(2)
2A: The Commissioner may comment on, or provide input for, processes and decisions that may affect the Crown’s interest as landowner of Crown land (for example, district plan changes).
3: After section 24(4)
5: See section 4
22: Section 60 amended (Creation of easements)
1: In section 60(1) Board Commissioner
2: After section 60(4)
5: When determining whether to grant an easement over or under pastoral land, the Commissioner may consider—
a: whether the easement is reasonably necessary for achieving the objectives of the applicant; and
b: if the application satisfies paragraph (a) section 4
c: any other matters the Commissioner considers relevant.
6: Before granting an easement over or under pastoral land, the Commissioner must consult the Director-General of Conservation.
23: Section 66A amended (Recreation permit)
1: In the heading to section 66A Recreation Commercial recreation
2: In section 66A(1) Board Commissioner
3: In section 66A(1) recreation permit commercial recreation permit
4: After section 66A(7)
8: If another enactment provides that a person must obtain permission under that enactment before undertaking an activity that is contrary to that enactment,—
a: the grant of a commercial recreation permit does not in itself allow the proposed activity to be carried out without the required permission under the other enactment; but
b: nothing in this subsection prevents the granting of a commercial recreation permit before permission under the other enactment has been obtained.
9: Without limiting subsection (6), a commercial recreation permit may be granted wholly or in part, with or without any conditions, limitations, directions, or restrictions that the Commissioner thinks necessary, including for the purpose of reducing the adverse effects on inherent values.
10: The granting of a commercial recreation permit in respect of pastoral land is subject to sections 9, 10, and 12
11: Before granting a commercial recreation permit in respect of pastoral land, the Commissioner must consult the Director-General of Conservation.
12: Nothing in this section requires the Commissioner to grant a proposed commercial recreation permit in any case.
24: Section 89 amended (Board to consent to dealings with leases or licences)
1: In the heading to section 89 Board Commissioner
2: In section 89(1) Board Commissioner
3: After section 89(2)
2A: Without limiting anything in subsection (2), when the Commissioner is considering whether to consent to the transfer or sublease of pastoral land, the Commissioner must consider whether requests for public access over the land have been unreasonably refused by the lessee or licensee in the past.
2B: If the Commissioner considers that access has been unreasonably refused, they may make their consent to the transfer or sublease subject to the condition that the lessee or licensee, and the potential transferee or sublessee, must enter into a negotiation process with the Commissioner with the intention that access requests will not be unreasonably refused after the transfer or subleasing.
2C: Any matters necessary to give full effect to the steps set out in subsections (2A) and (2B) section 100S(1)
25: Section 100 amended (Preservation of timber)
In section 100
2: Sections 9 to 11


1: Title
This Act is the Taxation (Cost of Living Payments) Act 2022.
2: Commencement
This Act comes into force on the day after the date on which it receives the Royal assent.
1: Amendments to Tax Administration Act 1994
3: Amendments to Tax Administration Act 1994
This Part amends the Tax Administration Act 1994 2022-05-25 Tax Administration Act 1994
4: Section 3 amended (Interpretation)
1: This section amends section 3(1)
2: Insert, in appropriate alphabetical order: cost of living payments scheme
3: In the definition of disputable decision
vb: to make, or to decline to make, a grant under the cost of living payments scheme under section 7AAA
4: In the definition of tax
ce: for the purposes of sections 6 to 6B, 156 to 165, 174AA, and 176 to 177CA, includes an amount payable in relation to a grant made under the cost of living payments scheme:
5: New section 7AAA inserted (Administration of cost of living payments scheme)
After section 7
7AAA: Administration of cost of living payments scheme
1: It is a function of the Commissioner to administer the cost of living payments scheme (the scheme
2: If a person who receives a grant under the scheme from the Commissioner does not qualify for the grant under the eligibility requirements of the scheme, the person must immediately repay to the Commissioner the total amount of the grant.
3: The Commissioner must publish, on an internet site administered by the Commissioner, the eligibility requirements referred to in subsection (2)
6: Section 157 amended (Deduction of tax from payments due to defaulters)
In section 157(10) income tax
kb: an amount payable in relation to a grant made under the cost of living payments scheme:
2: Amendments to Income Tax Act 2007
7: Amendments to Income Tax Act 2007
This Part amends the Income Tax Act 2007 2022-05-25 Income Tax Act 2007
8: Section CW 33 amended (Allowances and benefits)
After section CW 33(1)(c)
cb: a payment under the cost of living payments scheme, as defined in section 3(1) of the Tax Administration Act 1994:
9: Section MB 13 amended (Family scheme income from other payments)
In section MB 13(2)(n) (e), (cb)