On 14 May 2020 the Government introduced legislation to amend the Overseas Investment Act 2005 as part of the Phase Two Reform of the Overseas Investment Act, and in response to the COVID-19 pandemic.
The reforms aim to better ensure that investments by overseas persons are consistent with New Zealand's national interest.
These reforms, led by the Treasury, built on the Overseas Investment Amendment Act 2018, which introduced a new screening regime for foreign buyers seeking to acquire an interest in residential land, as well as measures to encourage foreign investment in the forestry sector.
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 proposed changes:
- Fact Sheet: Strengthening New Zealand's Overseas Investment Regime in Response to the COVID-19 Pandemic (13 May 2020)
- Key Questions and Answers: COVID-19 Economic Response: Reform of the Overseas Investment Act (13 May 2020)
Information release material
Material available here includes:
- Cabinet material and Treasury advice relating to the Phase 2 reform
- Treasury advice which constitutes the policy development involved in amending the Overseas Investment Act 2005 in response to the COVID-19 pandemic and associated economic downturn.
However material relating specifically to the consultation process and submissions received in 2019 is available at Overseas Investment Act Submissions Information Release.
|26-09-2018||Office of the Associate Minister of Finance|
|08-04-2019||Office of the Associate Minister of Finance|
|01-05-2020||Office of the Associate Minister of Finance|
|11-06-2020||Office of the Associate Minister of Finance|
|16-07-2020||Office of the Associate Minister of Finance|
|26-05-2020||Office of the Associate Minister of Finance|
|14-11-2019||Inland Revenue Department; The Treasury|