Watch this space: New Zealand's regulatory regime is preparing for liftoff

Over the past few years, we have seen celebrities travel into space, the resurgence of cult classics like Dune, Star Trek and Star Wars, and Samantha Harvey's Orbital become the first book set in space to win the Booker Prize.

Space is also capturing the attention of innovators, business leaders and economists, with the global space economy estimated to be worth USD1.8 trillion by 2035 (adjusted for inflation), up from USD630 billion in 2023 (McKinsey).

But with pop culture and economic opportunities leading many to look skywards, New Zealand's government is laying the groundwork for a legislative regime to appropriately manage our space industry.

At DLA Piper, we have kept a close eye on these details and developments. In this insight, we navigate through some of the key regulatory changes of 2025.

 

New Zealand's evolving approach to regulating space activities

New Zealand's size, location, nascent space industry and cultural commitment to a DIY, number-8-wire attitude mean that our space regulation can be just as agile and nimble as the technology it regulates.

Until recently, New Zealand's space regulation developed in response to commercial needs, rather than being dictated by government defence and exploration projects. At times, this has formed a double-edged sword, with New Zealand's space industry demanding clear direction, funding certainty and consistent regulation.

These demands have recently been heard, and we are seeing increased activity from regulators who have a multifaceted role as a customer, investor and regulator.

In September 2024, New Zealand adopted the Space and Advance Aviation Strategy 2024-2030 (Space Strategy). Its mission: double the size of New Zealand’s space and advanced aviation sectors by 2030.

 

Mission critical: fit-for-purpose space regulation

A key component of the Space Strategy is to develop efficient and easy-to-navigate regulatory regimes for advanced aviation and space.

The first iteration of this fit-for-purpose regulation is the new Outer Space and High-altitude Activities Amendment Act 2025 (Space Amendment Act).

On 22 and 23 July 2025, the previously unseen draft bill passed through Parliament under urgency. It received full cross-party support, an uncommon occurrence in New Zealand's parliamentary system. On 29 July 2025, the Act came into force.

The Space Amendment Act introduces a new regulatory regime to protect ground-based space infrastructure (GBSI) from foreign interference. GBSI tracks and controls spacecraft, manages space surveillance and transfers data to and from spacecraft. The new regime applies to:

• telemetry, tracking and control (including capabilities that could degrade or disrupt satellite operations) of spacecraft (including, for example, geodetic infrastructure);

• space surveillance and identification of spacecraft; and

• satellite data reception.

It does not apply to widespread consumer products such as satellite telephones, satellite television or internet receiving dishes.

The Ministry of Business, Innovation and Employment (MBIE) is developing the regulations under the Space Amendment Act and will manage them going forward, with the Minister of Space, Hon Judith Collins KC MP, as the decision maker.

Key changes in the Space Amendment Act include:

• MBIE can now shut down GBSI operations being used for malicious activity. As reported by the New Zealand Security Intelligence Service, New Zealand GBSI operators are receiving requests to develop space infrastructure for entities hiding their foreign military affiliations. These entities pose as civilian research organisations to deliberately misrepresent their intentions and attempt to covertly access technology and innovation.

• All existing GBSI operators have automatically been granted a temporary operating licence. Once the temporary licences lapse on 29 July 2026, or earlier if regulations come into force, GBSI operators will need to apply for authorisation and implement the required protective security and due diligence systems. Yet to be released regulation under the Space Amendment Act will provide further details of authorisation and ongoing obligations for those authorised.

• MBIE can refuse, revoke, suspend or vary authorisations on national security and national interest grounds (including temporary licences). If a GBSI poses an unmanageable risk to national security or other national interests, MBIE can require the operator to divest their equipment. MBIE can also require electricity retailers and internet service providers to stop providing services to infrastructure subject to disposal orders.

• Breaching the new regulatory requirements could result in a NZD50,000 fine and/or up to one year in jail for an individual, and a fine up to NZD250,000 for an entity. There are further penalties for non-compliance with the Space Amendment Act's various enforcement abilities.

 

More than just regulation: Mission control has been busy

The Space Amendment Act is not the only significant development in New Zealand's space sector. Over the last few months, we have witnessed the Space Strategy in action:

April

• The Coalition Government announced a multi-billion-dollar investment to modernise the New Zealand Defence Force (NZDF). This allocated NZD300–NZD600 million of spending over the next three years for improved space capabilities to support intelligence, surveillance, and reconnaissance communication, navigation and targeting. Currently, the NZDF leverages GBSI but does not own any space assets in orbit.

• The United Kingdom Prime Minister Keir Starmer and the New Zealand Prime Minister Christopher Luxon announced a new space science partnership with two goals. First, to fund research groups and companies with projects using satellite-based sensors to tackle climate change-related issues, such as monitoring water scarcity and drought. Second, to collaborate on New Zealand's expertise in developing satellite components and analysing Earth observation data. 

• Minister Collins attended the 40^th global Space Symposium to network and champion New Zealand as the place to do space-related business. At the symposium, Minister Collins signed a Memorandum of Co-operation with Colorado. This secured an opportunity to leverage external advice to increase regulatory efficiencies, as highlighted in the Space Strategy. For the next three years, Colorado and New Zealand will cooperate on matters such as aerospace technologies and applications, quantum technologies, entrepreneurship, venture capital, and startups. This may involve sharing regulatory experiences and policies, increasing bilateral foreign direct investment, developing bilateral research and development projects, strengthening company exchanges and expansion opportunities and promoting regional technology hubs and innovation ecosystems that advance strategic industries.

May

• New Zealand took another leap forward with the publication of the Deloitte and Space TrailBlazer Innovation for Growth, Charting the Space and Advanced Aviation Sectors report (Space Report), as commissioned by MBIE and NZTA. The Space Report surveyed over 450 space and aviation industry participants. Here are some fast facts from the Space Report about New Zealand's space sector:

• for the Financial Year 2024, it made an estimated annual economic contribution of NZD2.47 billion (July 2023 to June 2024). This is the figure which the Space Strategy aims to double by 2030;
• it supports around 17,000 full-time equivalent positions in New Zealand;

• it generated almost 29% of revenue from abroad, which is a higher export share than the New Zealand economy overall (in 2023 it was 24%). Export markets vary and include USA, Canada, Europe, Singapore, India, Japan, and Korea; and

• since 2019, it has grown 53%, with an equivalent year-on-year growth of 8.9%. This outpaces both global space sector economic growth and general domestic economic growth.

June

• New Zealand and NASA launched an Earth observation partnership, which involves NZD5.6 million in government funding over the next three years and NZD1.9 million contributed by NASA in direct staff time to support mission planning, data processing, and machine learning. The five projects utilise satellite data for mapping and sustainability purposes.

• New Zealand's first taxpayer-funded space mission, MethaneSAT, lost contact with mission control and, after only 15 months in orbit, is likely irrecoverable. The NZD32 million project was intended to track and quantify global methane emissions with unprecedented precision. Instead, it was plagued by technological issues (eg power shutdowns due to intense solar activity) causing delays in data collection. Since the announcement, questions have arisen regarding transparency, public spending and decision-making. MethaneSAT was a collaboration with the New Zealand Space Agency, US-based Environmental Defence Fund, the University of Auckland, Blue Canyon Technologies and Rocket Lab. We expect that the loss of MethaneSAT will shape the future of government-backed space projects.

• Canterbury’s Tāwhaki National Aerospace Centre (Tāwhaki) received a permanent special use airspace designation from the Civil Aviation Authority. From 7 August 2025, Tāwhaki will oversee a permanent test flight airspace to facilitate trials of new technology by advanced aviation companies. Alongside this announcement, a new Aerospace Leadership Group has formed for the region and released the Waitaha Canterbury Aerospace Strategy, the latter setting out an ambitious plan to build a NZD1 billion sector and create 1500 high-value jobs in Canterbury by 2035.

July

• To support the above airspace designation for Tāwhaki, Minister Collins announced NZD5.85 million in operational funding over the next three years, with total Government funding to Tāwhaki now exceeding NZD35 million since 2021.

• The Royal New Zealand Air Force established its first dedicated space unit, which is tasked with monitoring, analysing and understanding space activity to safeguard national and international interests. This demonstrates the increasing role of space technology in government defence strategy.

• Most importantly, the Space Amendment Act was enacted, as discussed above.

Much of this activity is the work of Minister Collins, who has a multifaceted role as Attorney-General and holds the ministerial portfolios of Defence, Digitising Government, Public Service, Government Communications Security Bureau, New Zealand Security Intelligence Service and Space.

 

What next? Onwards to new frontiers

New Zealand's regulators have committed to positioning the country as a global leader in space technology. And they are moving fast. But it is crucial that the result is competitive, safe and sustainable regulation and guidance that works for the space industry and its consumers.

With the right regulatory framework, New Zealand can harness the economic and innovative potential of the space industry while ensuring environmental sustainability and security.

We expect more updates and developments over the course of the year. DLA Piper will keep you informed as it happens but, in the meantime, reach out to our experts for more information.