New Zealand Law Society - Law Reform and Advocacy update

Law Reform and Advocacy update

Learn more about the Law Society’s 12 submissions on Bills, and 24 submissions on a range of discussion documents that have been made in the last quarter. 

The last few months have been a busy period of both law reform submissions and engagement with the profession on various law reform and other practice issues. In the past quarter, the Law Society has made 12 submissions on Bills, and 24 submissions on a range of discussion documents released by government agencies.

Recent law reform submissions include:

  • The Law Commission’s Issues Paper on hate crime, Hara ngākau kino. The Law Society’s submission acknowledged the seriousness of hate crime, but noted the establishment of new criminal offences demands strong justification, and there are significant information gaps about how the criminal justice system is currently recognising, responding to and denouncing hate crime, and whether denunciation of this type of offending is insufficient at present.
  • A submission on the Anti-money Laundering and Countering Financing of Terrorism Amendment Bill, supporting proposed amendments to reduce enhanced customer due diligence requirements for customers that are low risk trusts. However, the Law Society raised concerns about proposals to broaden the definition of “designated non-financial business or profession”, and to require that reporting entities undertake risk assessments in accordance with guidance produced by supervisors, rather than ‘having regard’ to such guidance.
  • A submission on Inland Revenue’s issues paper on Taxation and the Not-for-Profit Sector, suggesting that competitive advantage is not a compelling reason to tax business income derived by charities, and the fundamental issue is not whether business income derived by charities is taxed, but rather whether the Government remains satisfied it is appropriate to support charities through tax concessions. This would require a first principles review of the Charities Act 2005 and the definition of “charitable purposes”.
  • The Regulatory Systems (Occupational Regulation) Bill: the Law Society submitted in support of this Bill, which proposes amendments to the Lawyers and Conveyancers Act 2006. The amendments are aimed at improving the efficiency of the complaints process, and will allow the Lawyers Complaints Service to make an administrative decision – for specified purposes – not to refer a complaint to a Standards Committee. The Law Society consulted the profession on these proposals in 2021/2022, and they received broad support.
  • The Term of Parliament (Enabling 4-year Term) Legislation Amendment Bill, which proposes to enact a mechanism to extend the maximum term of Parliament to four years in certain circumstances. The Law Society’s submission notes that a variable Parliamentary term will create uncertainty, and majority opposition membership of select committees is an insufficient safeguard. Of particular concern, any extension to the term of Parliament is a significant constitutional change and the Bill’s process has been deficient, and inconsistent with best practice policy development processes.
  • A Department of Corrections consultation on the management of extreme threat prisoners (ETPs). The Law Society’s submission expresses support for increased transparency and a review of the regime so that it affords prisoners their full rights under the New Zealand Bill of Rights Act 1990. It encourages a clear statutory framework for ETP designation and the establishment of corollary units, legal representation for prisoners facing ETP designation, the appointment of an independent panel to consider designation and segregation, and regular review of a prisoner’s status where designated an ETP.

All public submissions are available on the Law Society’s website.

Recent engagement with the profession and stakeholders

Recent work with the judiciary

The Law Society has been engaging with the Employment Court, MBIE Employment Mediation Services and the Employment Relations Authority about issues impacting employment lawyers and their clients.

Representatives on the Rules Committee have been involved in drafting the new High Court Rules, which are aimed at improving access to civil justice in the High Court, and the Law Society will continue to work closely with the Rules Committee and the Ministry of Justice to deliver training to the profession before the new Rules commence on 1 January 2026.

The Law Society has also been engaging with the Judiciary to develop a new Commercial List for the Auckland High Court. This initiative is expected to materially change the approach to commercial litigation in Auckland by reducing the time spent in interlocutory phases, and leading to earlier substantive hearing dates.

Finally, we worked with Judge Nicholls and Justice Fitzgerald to deliver an online session for the profession, to facilitate consultation on the District Court and High Court protocols for remote participation by defendants in custody.

Courthouse safety and security

The Law Society has worked with the Ministry of Justice to introduce a new process to enable lawyers to bypass the queue for court security, and proceed directly to the screening station. Lawyers can now show their entry on the Law Society’s Register of Lawyers if they wish to bypass the security screening queue.

Alongside the Family Law Section, we also consulted the profession on preferences for the frosting of interview room glass within courthouses, to assist the Ministry of Justice with establishing a default position that can apply to new and refurbished courtrooms. Results were mixed, with a small majority preferring no frosting, and others raising concerns around privacy. Given the need to prioritise safety, the Law Society has suggested it would be best if the default for new rooms was no frosting, but where there is more than one interview room, there is a room available that has some privacy (whether in the form of partial frosting that does not obstruct the view of security, or through the location of that interview room).

We continue to engage with the Ministry of Justice about the implementation of Te Au Reka in the Family Court in July 2026.

AML/CFT reform continues

Throughout May, the Ministry of Justice undertook targeted consultation on design options for the proposed AML/CFT Industry Levy. The levy is intended to partially recover the costs of the AML/CFT regime, and the consultation set out design principles (such as proportionality and equity), as well as proposed metrics for calculation, and the structure of the levy.

The Law Society facilitated the provision of feedback from the profession, and at the time of LawTalk going to print, was preparing a submission to the Ministry of Justice.

Further consultation on the levy, including the legislative amendments required to enable it, will follow. It is intended collection of the levy will commence in mid-2027. Further AML/CFT reform is on the way, aimed at providing further regulatory relief and preparing New Zealand for the next Financial Action Task Force review in 2028. ▪

Interested in the above? Join a law reform committee or the PLS law reform panel

Expressions of interest for membership of the Law Reform Committees and the Property Law Section’s Law Reform Panel and subcommittees, will formally open in late July. If you are interested in joining, or would like additional information in the meantime, please get in touch via lawreform@lawsociety.org.nz