Source: New Zealand Government
Associate Finance Minister David Seymour is welcoming the passing of the Overseas Investment (National Interest Test and Other Matters) Amendment Act. The changes mean most overseas investment decisions must be made in 15 working days and New Zealand businesses will have more opportunities to receive new investment, grow and pay higher wages.
“New Zealand has been turning away opportunities for growth for too long. Having one of the most restrictive foreign investment regimes in the OECD means we’ve paid the price in lost opportunities, lower productivity, and stagnant wages. We are fixing that,” says Mr Seymour.
“Under the new law, decisions on all investments except residential land, farmland and fishing quota must be made within 15 working days, unless there is a potential national interest concern. That compares with a 70-day statutory timeframe for the current benefit test.
“International investment is critical to ensuring economic growth. It provides access to capital and technology that grows New Zealand businesses, enhances productivity, and supports higher paying jobs.
“New Zealand’s productivity growth has slowed down because workers haven’t had enough capital behind them. Over 2013–2023, our capital-to-labour ratio grew by just 0.7 per cent a year, compared with 2.2 per cent in the previous decade. As a result, productivity growth fell from an average of 1.4 per cent annually between 1993 and 2013 to just 0.2 per cent from 2013-2023.
“This law change builds on previous improvements. Last year I directed the Overseas Investment Office to speed up consent processing timeframes under the Overseas Investment Act. The letter set my expectation that LINZ will process 80 per cent of consent applications in half the statutory timeframes for decisions.
“LINZ has since taken a risk-based approach LINZ take to verifying information and streamlining consent processes. This recognises that the majority of consent applications are low-risk and should be processed more efficiently.
In the 12 months to 30 November:
- LINZ has processed almost 82.6 per cent of consent applications in half the statutory timeframe
- Processing times are 60 per cent faster than in financial year 2024. The average timeframe has reduced from 71 working days to 28 working days.
“The act also consolidates and simplifies the screening process for less sensitive assets by introducing a modified national interest test that replaces the existing benefit to New Zealand test and investor test and enables the regulator to triage low-risk transactions. If a national interest risk is identified, the regulator and relevant Minister will have a range of tools to manage this, including through imposing conditions or blocking the transaction,” says Mr Seymour.
Current screening requirements will stay in place for investments in farmland, fishing quota and residential land (except for investments in residential land from qualifying investor visa holders).
“New Zealand has been turning away opportunities for growth for too long. International investment is critical to ensuring economic growth. It provides access to capital and technology that grows New Zealand businesses, enhances productivity, and supports high paying jobs.”
The bill also ensures overseas-based investors with a New Zealand investor resident visa will be allowed to buy a house here, to encourage more investment to grow the economy.
“The Government is focused on smart immigration settings that bring additional investment, skills, and connections to New Zealand. The Active Investor Plus residency visa is critical to that and our economic growth. If a migrant invests a minimum of $5 million to help grow the economy, passes a good character test, and has acceptable health, they will now be able to buy or build a home,” Immigration Minister Erica Stanford says.
“The home must be valued at least $5 million, less than 1 per cent of New Zealand houses, providing greater connection into local communities.
“New investors don’t just bring their capital, they bring skills, knowledge and experience that will drive future economic development. We are open for business,” Ms Stanford says.
