When: From 16 June 2020
What: Changes have been made to rules that impact New Zealand businesses looking for overseas investment. The changes include:
- a new requirement to notify the Overseas Investment Office (OIO) about overseas investments, and
- a new national interest test that will apply to some investment transactions.
OIO will need to be notified about all overseas investments that will result in:
- more than 25% of a New Zealand business or its assets being owned by investors outside of New Zealand, or
- an increase to an existing holding beyond 50, 70 or to 100%.
A new national interest assessment will apply in rare circumstances to evaluate whether an overseas investment in sensitive and high-risk assets are in New Zealand’s national interests.
Changes also mean the application process for lower-risk investment transactions is simplified, and some transactions will no longer need consent.
Changes to the Overseas Investment Act — Overseas Investment Office
Who: New Zealand businesses seeking overseas investment.
Why: Overseas investment can support New Zealand’s COVID-19 economic recovery so that businesses can continue to grow and evolve, and keep more New Zealanders in jobs. The right checks and balances are needed to protect businesses that are important to New Zealand’s national security, economy, and communities.
What you need to do: If you are seeking overseas investment, be aware of the changes to when the OIO needs to be notified, and that a new national interest assessment might apply to overseas investors wanting to invest in your business.
Businesses seeking investment should get advice from their advisors, for example, a lawyer or accountant.