The Government has unveiled the long-awaited Overseas Investment (National Interest Test and Other Matters) Amendment Bill, marking a significant step in its “Going for Growth” strategy to attract international capital and stimulate economic development.

What’s changing?

The Bill aims to modernise New Zealand’s overseas investment framework by simplifying the approval process for lower-risk investments, while maintaining strong protections for sensitive assets. Although the types of transactions requiring consent remain unchanged, the assessment process will be significantly streamlined for those lower-risk investments.

Importantly, the Bill explicitly acknowledges the vital role foreign investment plays in bridging New Zealand’s savings gap, boosting productivity, and supporting higher-paying jobs 

Key features of the reform:

Key changes put forward in the Bill include:

• Updated purpose statement: While retaining the statement that ownership of sensitive assets by overseas persons is “a privilege”, the Bill will expand the purpose statement to explicitly recognise the positive role of foreign investment in driving economic growth.
• Consolidated screening test: A single national interest test will replace the current benefit to New Zealand and investor tests for most assets (excluding farmland, residential land, and fishing quota, which will continue under existing pathways).
• Faster decision-making: Land Information New Zealand (LINZ) must decide applications under the national interest pathway within 15 working days, unless there are reasonable grounds to escalate to a full national interest review. 
• Ownership threshold adjustment: The requirement for consent is removed for investors increasing their stake from over 75% to full ownership (unless the asset is a strategically important business).
• New regulation powers: The Bill allows for new classes of transactions to be designated for national interest assessment via regulation.
• Ministerial oversight: Only the relevant Minister can decline a transaction on national interest grounds, and this decision-making power cannot be delegated.

Next steps: Select Committee review

The Bill will now proceed to the Select Committee stage, where public submissions will be invited. We will be preparing submissions on behalf of our clients. 

From there, the Bill is expected to pass by the end of 2025, with the new regime anticipated to take effect in early 2026.

We will continue to monitor developments and provide updates as the legislative process unfolds.

If you have any questions, would like to make a submission to the Select Committee, or wish to discuss how these changes may impact your investment (or divestment) plans, please contact one of our experts.