The tribunal is empowered to investigate possible breaches of the principles of the Treaty of Waitangi by the New Zealand Government or any state-controlled body, occurring after 1975.

Most of the significant breaches of the treaty, such as land confiscation in the New Zealand Wars, had occurred in the nineteenth century, and the tribunal was initially in 1975 powerless to investigate these.

This amendment was one of the most important steps towards making the treaty relevant in New Zealand law and society.

[7] The amendment enabled covenants to be placed on such land stating that it might be claimed back by the tribunal, even if in private hands.

This amendment came about following the controversial recommendation in the Waitangi Tribunal's Te Roroa Report[8] that the Crown purchase an area of private land for return to claimants in a settlement.

The amendment prohibits the tribunal from recommending the return or purchase by the Crown of any private land, other than that covered by the covenants noted above.