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The Overseas Investment (National Interest Test and Other Matters) Amendment Bill 2025 is now open for submissions, which means we now have the full detail of what is proposed.
At the high level, we think it will send the message that New Zealand is open for business and that it will allow less sensitive investments to be progressed more quickly and easily. But while the welcome mat is out, the door will not always be open. The Bill retains significant discretion for the government of the day.
We provide an up-close look at the legislation and will be happy to assist should you wish to make a submission. The deadline is 23 July 2025.
Key provisions
The investor benefit to New Zealand and national interest tests will be replaced by a consolidated national interest test for all investments (including in existing plantation forestry) but excluding farmland, fishing quota and residential land (which will continue under the current arrangements).
For the first time in the history of the Overseas Investment Act (OIA), the Bill proposes that the Act’s purpose recognise the role of overseas investment in increasing economic opportunity in New Zealand. However, it retains as a core principle that it is a privilege for overseas persons to own or control sensitive New Zealand assets.
Also for the first time in the OIA’s history, the Bill proposes to cement the 15 working day timeframe for initial national interest risks assessments within the OIA itself. In recent years, where decision timeframes have been prescribed, it has been in regulations, which are easier to change.
While most decision making under the OIA will be delegated to the Overseas Investment Office, the decision to decline a transaction on national interest grounds remains with the relevant Minister.
As we predicted, the design of the new national interest test allows flexibility for the government of the day to determine those investments that may present a risk to New Zealand. This will make it a matter of discretion for whichever political parties are in power at any point in time.
This is in line with the international trend and brings our OIA closer to the Australian screening regime, under which senior Ministers can decide on a more case by case basis whether transactions should be declined or subject to special conditions.
Although the Bill will not change the rules for investments in farmland, fishing quota and forestry, it does tidy up technical issues and streamline the system, including:
- Broadening exemption powers to allow the granting of retrospective exemptions (previously a retrospective application consent was the only solution available to investors who invested without consent)
- Removing the requirement to obtain consent for investors increasing ownership or control interest from 75% to 100%, except where the investment involves a strategically important business
- Including a repeat investor pathway which could enable repeat investors in less sensitive assets to receive consent even faster than the 15 working days timeframe
From here
The Bill is before the Finance and Expenditure Select Committee for public input.
Reports released by the Treasury indicate that the policy decisions behind the Bill have been followed closely but that there is a view that further technical changes would improve the regime’s efficiency.
Submissions will create an opportunity to press that point.
The Government wants to pass the Bill before the end of this year, to come into force in early 2026.
Please contact one of our experts if you would like support in making a submission or would like to understand more about the impact of these changes.
