The extension of the higher approval threshold for investment in Australia by US investors to NZ investors, and the increased threshold for Australian investment in NZ, will facilitate Trans-Tasman investment.

The Foreign Acquisitions and Takeovers Amendment Regulation 2012 (No.1) (Cth) (Regulation), which amends the Foreign Acquisitions and Takeovers Regulations 1989 (Cth) to extend the higher monetary threshold of $1,078 million (to be indexed annually) for investments in non prescribed sensitive sectors by US private investors to NZ private investors, commenced on 1 March 2013.

New NZ regulations similarly increased the monetary threshold for most acquisitions of ‘significant business assets’ by Australian private investors to $NZ477 million (to be indexed annually) from 1 March 2013. These changes do not apply to investments involving ‘sensitive land’.

For further information, see the G+T January Corporate Advisory Update.

See also the regulations and the explanatory memorandum and the commencement instrument and its explanatory statement.

See also the New Zealand Overseas Investment Office news release and the NZ regulations.