What Is the Overseas Investment (National Interest Test and Other Matters) Amendment Bill?

The Overseas Investment (National Interest Test and Other Matters) Amendment Bill is a law that reshapes how New Zealand evaluates foreign investment. It introduces a new national interest test to ensure overseas investment benefits New Zealand’s economy while protecting sensitive assets such as residential land, farmland, fishing quota, and significant business assets.

For people visiting New Zealand or those thinking about remote work on visitor visas, the bill adds another layer to how foreign involvement in local businesses is managed. It affects overseas persons, overseas companies, and even digital nomads who may one day work with a New Zealand employer or New Zealand business.

Why Did New Zealand Introduce a National Interest Test?

The bill responds to growing concerns about safeguarding New Zealand’s national interest. While overseas investment can drive economic growth and create new economic opportunity, the government wanted a way to address investments that could threaten national security, public order, or strategically important industries.

The national interest test ensures:

• Only the relevant minister can apply the test when necessary.

• Investments involving sensitive assets face closer review.

• New Zealand has clear pathways to grant consent or decline consent when foreign investment poses risks.

This helps balance international investment with Zealand’s national interest while keeping compliance costs proportionate.

How Does the National Interest Test Work?

The investment national interest test follows a three stage process.

Stage 1: Standard Screening

• Applications are checked against the Overseas Investment Act 2005 and existing investor tests.

• This step ensures that only serious investors continue.

Stage 2: Ministerial Review

• The relevant minister may decide a full national interest assessment is needed.

• Factors include sensitive transactions, sensitive land, fishing quota, or significant business assets.

Stage 3: Final Decision

• The minister may approve, decline, or add conditions.

• Reasonable grounds must exist for intervention.

This creates a single national interest test that applies fairly across all cases while reducing uncertainty for low risk investments.

What Key Changes Does the Amendment Bill Introduce?

The amendment bill introduces key changes to the overseas investment regime:

• Adds a single test for national interest pathway cases.

• Expands rules for ownership or control interest in sensitive assets.

• Allows the minister to grant retrospective exemptions where appropriate.

• Updates the ministerial directive letter to reflect new regime expectations.

• Enables proportionate compliance action to address breaches.

• Clarifies the purpose statement to ensure focus on benefit to New Zealand.

By streamlining the process, the bill marks a balance between protecting New Zealand’s national interest and encouraging increasing economic opportunity through foreign partnerships.

How Does This Affect Overseas Persons and Businesses?

For overseas persons and overseas companies, the rules now make clear when a national interest assessment is triggered. If the investment involves sensitive categories such as farm land or strategically important business assets, stricter conditions apply.

For Zealand businesses seeking partnerships, the bill creates confidence that foreign investors are screened carefully. This reassures New Zealand residents that their resources, jobs, and local businesses remain protected.

How Does This Connect to Visitor Visas and Remote Work?

Although the Overseas Investment Act primarily governs large-scale investment, its spirit also ties into broader immigration and visa rules. Many visitor visa holders, digital nomads, and remote workers are engaging with New Zealand clients and Zealand businesses in new ways.

Some activities are allowed under visitor visa conditions, such as:

• Answering emails for an overseas employer

• Making phone calls coding or writing reports for Zealand clients

• Giving presentations or zealand creating content for social platforms

• Acting as a social media influencer connecting with New Zealand based employers

Other activities may breach visa rules if they involve direct work for a Zealand employer provide goods or services or receiving gain or reward locally.

Can Digital Nomads Work in New Zealand Under Visitor Visas?

Many digital nomads ask if they can work remotely in New Zealand on Zealand visitor visas.

Here is what’s important:

• You can work remotely for an overseas employer as long as your activity undertaken does not breach visa conditions.

• If you are physically present in the country beyond a certain month period, you may become a tax resident and be required to pay tax under New Zealand income tax or a tax treaty.

• Some may need a separate visa or work visa if their remote work benefits a New Zealand based employer.

This links back to the immigration act and immigration instructions that govern what visitors can and cannot do while visiting New Zealand.

What Are the Tax Obligations for Remote Workers in New Zealand?

If you are remotely in New Zealand working for an overseas employer, your tax obligations depend on:

• Days in New Zealand: Spending more than 183 days may make you a tax resident.

• Income source: Earnings from New Zealand based employers may be subject to Zealand income tax.

• Tax treaty: Agreements with other countries may reduce double taxation.

Visitors enjoying free accommodation, visiting family, or working as tourists should remain cautious about not breaching visitor visa conditions.

How Does This Bill Impact Local Businesses and Economic Growth?

The bill aims to both protect Zealand’s national interest and support local businesses. By filtering out sensitive transactions that could harm public order or security, New Zealand can focus on economic opportunity that truly benefits the country.

Benefits include:

• More jobs for New Zealand residents

• Growth in Zealand businesses through safe partnerships

• Protection of sensitive land and fishing quota and residential areas

• Assurance that overseas investment national interest serves the wider community

This shows how investment national interest test supports both the government’s duty to address breaches and the public’s call for fairness.

What Role Does Parliament Play in This Process?

The Zealand Parliament oversees the select committee stage where public submissions help shape the bill. The first reading and later stages allow members to debate the bill amends.

The matters amendment bill strengthens the overseas investment act while ensuring non mandatory factors are considered fairly. Public order, economic growth, and reasonable grounds are always central.

This transparent process allows visitors, partners and guardians, and New Zealand residents alike to see how the law evolves.

Conclusion

The Overseas Investment (National Interest Test and Other Matters) Amendment Bill reshapes how overseas investment national interest is reviewed. By adding a single national interest test, reducing compliance costs, and protecting sensitive assets, the bill secures New Zealand’s national interest while encouraging safe international partnerships.

For those visiting New Zealand, whether as tourists, people visiting family, or digital nomads, it is essential to respect visa rules and understand how visa conditions, tax obligations, and the immigration act connect with wider national policies.

If you need legal guidance on visas, overseas investment, or immigration in New Zealand, visit Surani Associates for professional support.

Works Cited

New Zealand Government. Overseas Investment Act 2005. New Zealand Legislation, 2005, https://www.legislation.govt.nz/act/public/2005/0082/latest/DLM356881.html.

New Zealand Government. Overseas Investment (National Interest Test and Other Matters) Amendment Bill. New Zealand Parliament, 2020, https://www.parliament.nz/en/pb/bills-and-laws/bills-proposed-laws/document/BILL_98088/overseas-investment-national-interest-test-and-other-matters.

Inland Revenue. Tax Residence in New Zealand. New Zealand Inland Revenue Department, https://www.ird.govt.nz/international-tax/tax-residency.

Immigration New Zealand. Visitor Visa Guide. Immigration New Zealand, https://www.immigration.govt.nz/new-zealand-visas/options/visit.

Ministry of Business, Innovation and Employment. Overseas Investment and National Security. MBIE, https://www.mbie.govt.nz/business-and-employment/business/overseas-investment.

Frequently Asked Questions

1. What is the purpose of the Overseas Investment (National Interest Test and Other Matters) Amendment Bill?
The bill ensures that overseas investment benefits New Zealand while protecting sensitive assets and national security.

2. Who decides if the national interest test applies?
Only the relevant minister can require a full national interest assessment.

3. Can digital nomads work remotely in New Zealand on a visitor visa?
Yes, but only if the work is for an overseas employer and does not breach visitor visa conditions.

4. Do remote workers need to pay New Zealand income tax?
Remote workers may become tax residents if they stay beyond 183 days or earn from New Zealand based employers.

5. How does this bill affect local businesses?
It encourages safe overseas partnerships while protecting sensitive land, resources, and strategically important businesses.