NZ Introduces Fast-Track Investment Bill to Spur Growth and Boost Wages

The revamped system will align New Zealand’s investment practices with those of other advanced economies, which benefit from open borders for capital and innovation.

New Zealand has taken a major step toward reinvigorating its economic future with the introduction of the Overseas Investment (National Interest Test and Other Matters) Amendment Bill, which passed its first reading in Parliament this week. The legislation, spearheaded by Associate Finance Minister David Seymour, promises to overhaul the country’s restrictive foreign investment framework to better attract international capital, encourage business growth, and deliver higher wages for Kiwi workers.

Breaking Free from Economic Stagnation

New Zealand’s current foreign investment regime is among the most prohibitive in the OECD. As a result, foreign direct investment (FDI) has languished at just 39% of GDP—significantly below the OECD average of 52%. Seymour says this trend has stifled productivity and wage growth and left New Zealand trailing its global counterparts.

“New Zealand has been turning away opportunities for growth for too long,” Seymour remarked. “This Bill is about reversing that and ensuring New Zealand is seen as open for business.”

The figures are compelling. From 1993 to 2013, New Zealand’s productivity grew by 1.4% annually. Over the last decade, that figure has plummeted to just 0.2% per year. Meanwhile, capital per worker—a key productivity indicator—has grown at an anemic 0.7% annually over the past decade, compared to 2.2% in the previous one.

Simplified Screening to Accelerate Investment

At the heart of the reform is a new, streamlined screening process for lower-risk investment proposals. The existing “benefit to New Zealand” and “investor” tests will be replaced with a modified “national interest test.” This will empower regulators to triage routine transactions quickly, while maintaining robust protections where needed.

Crucially, investment decisions—except for sensitive categories like farmland and fishing quotas—must be completed within 15 days unless national interest concerns are raised. This marks a dramatic improvement from the current 70-day regulation benchmark, where decisions often take an average of 30 days.

High-value transactions—such as investments in significant business assets, forestry, and non-farmland assets—comprise roughly $14 billion in gross investment annually. The Bill aims to remove red tape around these key investment flows to unlock more capital and accelerate growth.

National Security Still a Priority

Despite the deregulation push, New Zealand is not compromising on strategic oversight. The current screening framework for farmland and fishing quota investments will remain intact. In addition, the updated Ministerial Directive Letter will offer new guidance on which assets should undergo enhanced scrutiny and what may be deemed contrary to New Zealand’s national interest.

Seymour emphasized the importance of a balanced approach: “This guidance will provide a degree of certainty to investors and support a flexible regime which is responsive to new and emerging risks.”

A Modern Regime for a Global Economy

The revamped system will align New Zealand’s investment practices with those of other advanced economies, which benefit from open borders for capital and innovation. Countries like Australia, the UK, and Canada have long used flexible national interest frameworks to enable growth while managing risks.

“These reforms cut compliance costs, reduce processing times, and restore confidence that New Zealand is open for business,” Seymour said. “If we are going to raise wages, we can’t afford to ignore the simple fact that our competitors gain money and know-how from outside their borders.”

The Bill is set to be fully passed by the end of 2025, with implementation of the new regime and directive letter targeted for early 2026.