New Zealand : Reform of the Overseas Investment Act

24-hour hotline : 23 922 922

e-mail address : enquiry@tid.gov.hk

Ref: EIC 895/1

31 August 2020

Dear Sirs,

The New Zealand Government is undergoing reforms of the Overseas Investment Act 2005 (the Act). This circular provides background information for traders' reference.

2.The Overseas Investment Act 2005 is the primary tool for managing foreign investment in New Zealand's sensitive assets, which sets screening requirements for investments in sensitive land, significant business assets and fishing quota. Phase 1 of the reform took place in 2018 which introduced, amongst others, greater limitations on residential land, forestry rights and certain other profits within the scope of the its screening regime.

3.Under Phase 2 of the reform, two Bills were introduced in May 2020, they are -

1. Overseas Investment (Urgent Measures) Amendment Bill - Enacted in June 2020 to mitigate the economic effects of COVID-19. Major features include (i) imposing temporary notification requirement on foreign investors; (ii) introducing a national interest test; and (iii) introducing a national security and call-in power. Key features can be found at the Fact Sheet (English only) -
   https://treasury.govt.nz/system/files/2020-05/oi-factsheet-covid-19-may20.pdf
2. Overseas Investment Amendment Bill (No. 3) - Contains the measures under the Overseas Investment (Urgent Measures) Amendment Bill 2020 as well as other streamlining and facilitating measures.

Details of the proposed reform are available at the following link (English only) -
https://treasury.govt.nz/news-and-events/reviews-consultation/overseas-investment-consultation.

4.The New Zealand Government is inviting public submissions on the Overseas Investment Amendment Bill (No. 3). The closing date for submissions will be announced at a later date. Traders can make their submissions to the New Zealand Government direct at the following link (English only) -
https://www.parliament.nz/en/pb/sc/make-a-submission/document/52SCFE_SCF_BILL_97807/overseas-investment-amendment-bill-no-3.

5.For enquiries concerning the content of this circular, please contact us at 2398 5594.

Yours faithfully,

(Miss Carmen Chan)
for Director-General of Trade and Industry

Note: While every effort is made to ensure the accuracy of the above information, the Department cannot guarantee this to be so and will not be held liable for any reliance placed on the same.