Following public consultation earlier this year, and in response to the COVID-19 pandemic and associated economic downturn, the Government has agreed to changes to the Overseas Investment Act.
Associate Finance Minister David Parker announced the changes on 13 May 2020.
Read the Minister's media statement on the Beehive website: New measures to protect New Zealand’s national interest during COVID-19 crisis.
Two Bills were introduced in the House of Representative on 14 May 2020. These are available on the Legislation website:
- Overseas Investment (Urgent Measures) Amendment Bill - This Bill contains measures which the Government considers need to be put in place urgently to mitigate the economic effects of COVID-19. Its purpose is to ensure that risks posed by foreign investment can be managed effectively while better supporting productive overseas investment by reducing the regulatory burden of the screening process.
- Overseas Investment Amendment Bill (No 3) - This Bill contains other measures from the Phase two reform of the Overseas Investment Act 2005 which the Government considers do not need to be put in place urgently to mitigate the economic effects of COVID-19.
Resources have been prepared to provide details of the changes:
- Fact Sheet: Strengthening New Zealand's Overseas Investment Regime in Response to the COVID-19 Pandemic (12 May 2020)
- Key Questions and Answers: COVID-19 Economic Response: Reform of the Overseas Investment Act (12 May 2020)
- Overseas Investment Amendment Bill 2020: Summary of Approach to Supporting Regulations (15 May 2020)
- Overseas Investment (Urgent Measures) Bill and the Overseas Investment Amendment Bill (No 3): Overview (14 May 2020)
The Treasury has also released the related Cabinet paper: Cabinet Paper DEV-20-SUB-0066: COVID-19 Economic Response: Reform of the Overseas Investment Act (1 May 2020).
The Treasury has issued guidance on New Zealand's foreign investment policy including on how the new national interest test will be applied by the government.
Key information releases
- Phase 2 Overseas Investment Act Reform (October 2018, July 2019, May 2020) - Treasury advice and Cabinet material relating to the 2018 to 2020 Phase 2 review of the Overseas Investment Act 2005 that was seeking to better ensure that investments by overseas persons are consistent with New Zealand's national interest.
- Overseas Investment Act Submissions (19 December 2019) – Material includes a report summarising submissions received on Phase 2 Overseas Investment Act reform, individual submissions and related Cabinet material seeking agreement to the Phase 2 reform of the Overseas Investment Act 2005.
Prior consultation process
The consultation document issued in April 2019 sought feedback on issues relating to the types of assets that are screened, who is screened, and how the screening process is conducted.
- A3 overview – an at a glance summary of issues being considered
- Summary: Overseas investment in New Zealand – a quick guide to the key topics being consulted on
- Consultation document – a comprehensive assessment of the reform options being considered
- Reform of the Overseas Investment Act 2005: Facilitating productive investment that supports New Zealanders’ wellbeing (April 2019)
Find out more about the Review
For general enquiries about Phase 2 of the Overseas Investment Act reform, please email [email protected]
All media enquiries should be directed to: [email protected]