The Government has confirmed a significant overhaul of New Zealand’s earthquake-prone building (EPB) framework, following advice and analysis published by the Ministry of Business, Innovation and Employment (MBIE). These reforms aim to create a more proportionate, risk-focused system – one that targets higher-risk buildings and regions while reducing unnecessary cost pressures on owners and communities.
A bill to give effect to the changes, the Building (Earthquake-prone Building System Reform) Amendment Bill, is expected to be introduced soon.
TARGETING THE BUILDINGS THAT POSE THE GREATEST RISK
MBIE’s summary of the proposed changes highlights a central shift: low-risk buildings, and buildings located in low seismic zones such as Auckland, Northland and the Chatham Islands, will be removed from the EPB system altogether. This represents a major recalibration of the current settings, which have long been criticised for imposing uniform requirements regardless of true seismic exposure.
The reforms are intended to ensure strengthening work is required only where it materially improves life safety. This will help relieve financial pressure on owners in lower-risk areas while still prioritising buildings with the highest potential to cause harm in an earthquake.
A MORE FLEXIBLE AND MODERNISED FRAMEWORK
To make the system more responsive to actual risk, the Government plans to introduce tiered mitigation requirements. These will use updated engineering methodologies and will better differentiate obligations based on both building type and geographic location.
Owners will also benefit from the ability to apply for extensions to remediation deadlines, provided key criteria are met. This added flexibility acknowledges the practical challenges of financing and completing strengthening work under tight timeframes.
Another notable change is the removal of the requirement to carry out fire and accessibility upgrades at the same time as seismic strengthening – an obligation that has frequently increased complexity and cost. MBIE expects this adjustment to make strengthening projects more attainable for many owners.
SIGNIFICANT SAVINGS AND COMMUNITY BENEFITS
The scope of the reform is substantial. MBIE’s analysis indicates that the proposed changes will:
- Remove around 55% of existing EPBs (approximately 2,900 buildings) from the system
- Reduce costs for a further 1,440 buildings, which will shift to more affordable strengthening pathways
- Leave 840 buildings with no mandatory remediation requirement
- Require only around 80 buildings nationwide to undergo full retrofitting
In total, the reforms are expected to deliver approximately $8.2 billion in savings for building owners, including public agencies. These savings will have significant flow-on benefits for regional economies and for communities concerned about the future of heritage and character buildings.
