The long-awaited Overseas Investment (National Interest Test and Other Matters) Amendment Bill (the Bill) was introduced to Parliament yesterday.  Its arrival has been anticipated since February, when the Government first announced plans to overhaul the Overseas Investment Act 2005 (OIA).  

The key objectives of the Bill are:

• Faster screening for low-risk investments: Applications considered low risk will be cleared within 15 working days.  However, if the Overseas Investment Office (OIO) has reasonable grounds to believe the investment may pose a risk to New Zealand’s national interest, a full national interest assessment will be required.
• A single national interest test: The existing investor, benefit to New Zealand, and national interest tests will be consolidated into a single test for all investments other than those involving farmland, fishing quota and residential land (for which the existing consent pathways and rules will remain).
• Revised purpose of the OIA: The purpose of the OIA will expressly acknowledge the role of overseas investment in boosting economic opportunity, while reaffirming that ownership and control of sensitive assets by overseas persons remains a privilege.  This revised purpose underpins the new single national interest test.

The scope of investments requiring consent under the OIA remains largely untouched. Instead, the Bill proposes to reform how consent applications are assessed, with the aim of speeding up decisions and aligning them more closely with New Zealand’s strategic national priorities.

Key changes

Who are the winners and the losers?

Foreign investors making low-risk investments – particularly those not involving farmland, fishing quota, or residential land – are the clear winners. These investors stand to benefit from a significantly shorter consent process. 

Forestry investors, by contrast, are likely to be among the main losers.  The removal of the special forestry test and the standing consent pathway strips away the streamlined treatment many have relied on in recent years. Going forward, forestry investments will be assessed under the broader national interest framework, and will be subject to the same level of scrutiny as other sensitive land transactions.

Investments that are strategically important or politically sensitive – whether due to their size, sector, or the identity of the investor –  are likely to face greater scrutiny. The Bill introduces a more discretionary framework, shifting away from prescriptive tests to a broader national interest lens. This could (without clear guidance in place) lead to assessments that are more subjective, less predictable and potentially more influenced by public or political pressure.  Investors in sensitive sectors should prepare for more rigorous and possibly prolonged review processes.

Our thoughts

The Bill marks a measured but meaningful step towards a more efficient consent regime. However, the shift toward a broader, discretionary national interest test also introduces uncertainty, and also the danger that the process becomes unpredictable – or politicised. We believe that the effectiveness of the reforms will depend heavily on the Ministerial directive letters and the guidance provided by the OIO on: a) how discretion will be exercised; and b) what types of assets or sectors are likely to attract closer scrutiny – e.g. will certain types of land be considered to pose more risk than others?

Another key question is whether the administrative burden on investors will ease. The current OIO process is known for its extensive information requirements – from passports to detailed investment plans. While the Bill promises faster outcomes, it is not yet clear whether the volume of supporting material required will reduce.

Until these practical questions are resolved, the real impact of the Bill remains uncertain.

Next step

The Bill has now entered the Parliamentary process and is expected to pass by the end of 2025. Public submissions to the Select Committee will open shortly.

If you are considering making a submission on the Bill, or need advice on how the reforms may affect your business or investments in New Zealand, please get in touch with our team of experts.