These measures are to curb "abuse of freedom camping" by domestic and international tourists once the borders re-open, said the minister.
Previous low-cost solutions such as portable chemical toilets have allowed camper conversions to be certified as self contained. However Nash says that higher standards and higher penalties on those breaking them will prevent problem campers.
The maximum fine has been increased to $1000 per infringement, five times the current penalty.
Past offenses reported by local authorities include parking on front lawns, disposal of human waste and fake 'self contained' stickers on campervans.
Non-contained vehicles will still be able to stay overnight at DoC campsites. Freedom campers can also continue to stay overnight in tents, where permitted.
However it is the non-certified campervans and conversions MBIE's is cracking down on, should these laws pass.
Bruce Lochore chief executive of the NZ Motor Caravanning Association said the change was "long overdue"
"We've been advocating for some of the changes for over eight years," he said.
"We applaud the minister for putting in an agency to oversee the containment."
Lochore said it would be NZMCA's 108,000 members whose members have also been affected by issues of containment and community backlash.
"Freedom camping has become bigger over the years, these steps will reduce the burden on communities and the responsible campers who have been tarred with the same brush."
Dan Alpe, founder of the Jucy Group also welcomed the proposed changes.
"It will ultimately clean up a lot of privately-owned vehicles out there which don't fit what the original bill was meant to be," said Alpe.
65 per cent of the Jucy rental fleet are self-contained, some of which will have to be upgraded to reflect the new guidelines.
Having been part of the consultation process, the rental company reported that customers had experienced hostility over the perceived reputation of freedom campers.
Ultimately Alpe predicts it will be up to both campers local authorities to clean up the freedom camping market.
"Some councils will choose to improve facilities to cater for non-self contained traveller still benefits the places they go into."
There will be $10 million in transitional funding over the next two years to support local councils to educate freedom campers in the new laws.
Nash said that tougher laws on the type of vehicle able to freedom camp would benefit other parts of the budget travel industry such as backpackers, who had been suffering the lack of international visitors.
"Hostels and campgrounds are perfect for the budget-conscious traveller who may have considered freedom camping in the past," said Nash.
After unveiling the proposed freedom camping laws, the minister stated that they were not designed as a 'campervan ban'.
"Backpackers in budget vehicles are welcome," he said, providing they respect the environment and communities in which they camp.
"Abuse of freedom camping by domestic and international travellers not only damages our 100% Pure brand, it erodes public support for tourism and undermines its social licence to operate."
Proposed freedom camper laws
· Freedom campers will need to be in a certified self-contained vehicle to stay overnight on land managed by local councils, unless the council has designated the area for non-certified vehicles.
· Freedom campers will be able to stay on Department of Conservation (DoC) land in vehicles that are not self-contained, unless DoC has formally restricted or prohibited camping in such vehicles.
· Freedom campers can continue to stay overnight in tents, where permitted.
· The infringement system will be strengthened with tougher fines and penalties of up to $1000, replacing the current $200 fine.
· A new regulatory system to enable vehicles to be certified as self-contained. To be certified as self-contained, a vehicle will need a fixed toilet.
· Certification will be overseen by agents authorised by the Plumbers, Gasfitters and Drainlayers Board.
· The new rules can also be extended to cover land managed by Waka Kotahi-NZTA, and Toitū Te Whenua-Land Information NZ.
