Overseas Investment (Fees) Amendment Regulations 2021

2021/206

Coat of Arms of New Zealand

Overseas Investment (Fees) Amendment Regulations 2021

Patsy Reddy, Governor-General

Order in Council

At Wellington this 9th day of August 2021

Present:
Her Excellency the Governor-General in Council

These regulations are made under section 61 of the Overseas Investment Act 2005 on the advice and with the consent of the Executive Council and on the recommendation of the Minister of Finance.

Regulations

1 Title

These regulations are the Overseas Investment (Fees) Amendment Regulations 2021.

2 Commencement

These regulations come into force on 13 September 2021.

3 Principal regulations

These regulations amend the Overseas Investment Regulations 2005.

4 Regulation 33 amended (Fees and charges)

In regulation 33(2), replace “fees and charges in Parts 7 and 8” with “hourly fees and charges in Parts 6 and 8”.

5 Regulation 34 replaced (When fees and charges are payable)

Replace regulation 34 with:

34 When and how fees and charges are payable and refundable

(1)

A fee or charge that is payable under regulation 33 must be paid in accordance with this regulation, regulation 34A, and Schedule 2.

(2)

If an application is made but rejected because the requirements in section 23 of the Act are not met, a further fee is also payable on making an application that replaces the rejected application.

(3)

Fees payable after acceptance of an application are payable—

(a)

after the regulator notifies the applicant that the requirements in section 23 of the Act are met, but before a decision is made on the relevant application; and

(b)

within the time frame specified in the invoice issued by or on behalf of the regulator for the matter.

(4)

Fees payable for monitoring compliance are payable—

(a)

before a decision is made on the relevant application; and

(b)

within the time frame specified in the invoice issued by or on behalf of the regulator for the matter.

(5)

The regulator must refund a monitoring compliance fee if consent is not granted as a result of the relevant application.

34A Further provisions about fees for complex applications

(1)

For the purpose of Schedule 2, a complex application fee applies if either or both of the following applies at the date of the regulator’s invoice:

(a)

5 or more persons are to be considered as part of the determination under section 15(1) of the Act as to who is the relevant overseas person for the overseas investment:

(b)

10 or more persons are to be considered as part of the determination under section 15(2) of the Act as to who is within the category of individuals with control of the relevant overseas person.

(2)

The regulator must refund the difference between a complex application fee and a not complex application fee if, at the time that the relevant application is decided,—

(a)

fewer than 5 persons are determined under section 15(1) of the Act to be the relevant overseas person for the overseas investment:

(b)

fewer than 10 persons are determined under section 15(2) of the Act to be within the category of individuals with control of the relevant overseas person.

(3)

Persons who have previously met the investor test are counted under subclauses (1) and (2) in the same way as other persons, even if the circumstances in section 29A(3) of the Act apply.

6 Schedule 2 replaced

Replace Schedule 2 with the Schedule 2 set out in the Schedule of these regulations.

Schedule Schedule 2 replaced

r 6

Schedule 2 Fees and charges

r 33

Part 1 Applications relating to transaction in category of overseas investment in sensitive land only—residential land

The fees and charges in this Part apply to applications relating to transactions that will result in an overseas investment in sensitive land only, where all of the relevant land is residential land.

Matter for which fee or charge payable and when and how payable($)
1For consent, or a standing consent, for a transaction involving a land decision only, on the basis of section 16(1)(b)(i)(A) of the Act (the commitment to reside in New Zealand test) or clause 1 of Schedule 4 of the Act (residential land: commitment to reside in New Zealand standing consents), where the land is residential (but not otherwise sensitive) land, payable on making application—
(a)

if the applicant is 1 or more individuals

2,040
(b)

if the applicant is a company, trust, limited partnership, or any person other than 1 or more individuals

5,800
2For consent, or a standing consent, for a transaction involving a land decision only, on the basis of section 16(1)(d)(i) of the Act (the commitment to reside in New Zealand test) or clause 1 of Schedule 4 of the Act (residential land: commitment to reside in New Zealand standing consents), where the land is or includes both residential, and otherwise sensitive, land—
(a)

payable on making application

0
(b)

payable after acceptance of application

8,100
(c)

payable for monitoring compliance

8,800
3

For consent for a transaction involving a land decision only, on the basis of section 16(1)(b)(i)(B) of the Act (the increased housing test), if the investor test does not apply to the overseas investment because circumstance 2 in section 16(3)(b) of the Act applies, payable on making application

2,040
4For a waiver relating to a trigger event under clause 8 of Schedule 2 of the Act, payable on making application3,400
5For an exemption certificate under clause 4(2) of Schedule 3 (dwellings in large apartment developments that are purchased off plans), payable on making application14,200
6For consent for a transaction involving a land decision only, on the basis of 1 or more of the tests in section 16(1)(b)(i) of the Act (the commitment to reside in New Zealand test, the increased housing test, the non-residential use test, and the incidental residential use test), other than where any of items 1 or 3 of this Schedule apply,—34,100
(a)

payable on making application

13,300
(b)

payable after acceptance of application

16,800
(c)

payable for monitoring compliance

4,900
7For a standing consent under clause 2 of Schedule 4 of the Act (the increased housing test, the non-residential use test, or the incidental residential use test),—
(a)

payable on making application

13,300
(b)

payable after acceptance of application

40,700
(c)

payable for monitoring compliance

3,500
(d)

for each transaction of which the regulator must be notified under a condition imposed under clause 2(3)(c) of Schedule 4 of the Act, payable when the transaction must be notified

16,800

Part 2 Applications relating to transaction in category of overseas investment in sensitive land only—forestry activities and profits à prendre

The fees and charges in this Part apply to applications relating to transactions that will result in an overseas investment in sensitive land only, where 1 or more of the following applies:

(a)

the modified benefit to New Zealand test in section 16A(3) of the Act applies, for things described in section 16A(2) (forestry activities):

(b)

the special test relating to forestry activities in section 16A(4) of the Act applies:

(c)

the application is for a standing consent on the basis of clause 3 of Schedule 4 of the Act (which relates to forestry activities):

(d)

the section 12 interest is 1 or more regulated profits à prendre.

Matter for which fee or charge payable and when and how payable ($)
8

For consent for a transaction involving a land decision only, on the basis that—

(a)

section 16A(1) of the Act be applied (the benefit to New Zealand test), where the only section 12 interest is 1 or more regulated profits à prendre (other than forestry rights); or

(b)

section 16A(3) of the Act be applied (the modified benefit to New Zealand test for things described in section 16A(2) of the Act (forestry activities)),—

payable—

(c)

on making application

13,300
(d)

after acceptance of application if the application is complex

42,700
(e)

after acceptance of application if the application is not complex

17,300
(f)

for monitoring compliance

3,000
9For consent for a transaction involving a land decision only, on the basis of section 16A(4) of the Act (the special test relating to forestry activities), payable—
(a)

on making application

13,300
(b)

after acceptance of application

17,500
(c)

for monitoring compliance

3,000
10For a standing consent under clause 3 of Schedule 4 of the Act (forestry activities), payable—
(a)

on making application

13,300
(b)

after acceptance of application

38,500
(c)

for monitoring compliance

3,000
(d)

for each transaction of which the regulator must be notified under a condition imposed under clause 3(3)(c) of Schedule 4 of the Act, payable when the transaction must be notified

11,200

Part 3 Applications relating to transaction in category of overseas investment in sensitive land only, significant business assets only, or sensitive land and significant business assets only

The fees and charges in this Part apply to applications relating to transactions to which Part 1, 2, or 4 do not apply.

In this Part, a matter is on the basis of the modified benefit test for farm land if consent for a transaction is sought—

(a)

on the basis of section 16A(1C) of the Act (modified benefit test if relevant land is or includes farm land), as it applies after the commencement of section 9 of the Overseas Investment Amendment Act 2021; or

(b)

on the basis of section 16A(1)(b) of the Act, as it applies before the commencement of section 9 of the Overseas Investment Amendment Act 2021 (if the relevant land is or includes non-urban land that, in area (either alone or together with any associated land) exceeds 5 hectares).

Matter for which fee or charge payable and when and how payable($)
11For consent for a transaction involving a land decision only, on the basis of section 16(1)(c)(i) of the Act, payable—
(a)

on making application

13,300
(b)

after acceptance of application

29,100
(c)

for monitoring compliance

4,900
12

For consent for a transaction, on the basis of the benefit to New Zealand test (other than where section 16A(3) of the Act applies), where—

(a)

the application is not on the basis of the modified benefit test for farm land; and

(b)

the determination is made by the relevant Ministers—

(whether or not the transaction also results in an overseas investment in significant business assets), payable—

(c)

on making application

13,300
(d)

after acceptance of application if the application is complex

114,600
(e)

after acceptance of application if the application is not complex

49,000
(f)

for monitoring compliance

11,700
13

For consent for a transaction, on the basis of the benefit to New Zealand test (other than where section 16A(3) of the Act applies), where—

(a)

the application is not on the basis of the modified benefit test for farm land; and

(b)

the determination is made by the regulator under delegation—

(whether or not the transaction also results in an overseas investment in significant business assets), payable—

(c)

on making application

13,300
(d)

after acceptance of application if the application is complex

113,200
(e)

after acceptance of application if the application is not complex

45,900
(f)

for monitoring compliance

9,000
14

For consent for a transaction, on the basis of the benefit to New Zealand test, where—

(a)

the application is on the basis of the modified benefit test for farm land; and

(b)

the determination is made by the relevant Ministers—

(whether or not the transaction also results in an overseas investment in significant business assets), payable—

(c)

on making application

13,300
(d)

after acceptance of application if the application is complex

119,600
(e)

after acceptance of application if the application is not complex

56,100
(f)

for monitoring compliance

13,300
15

For consent for a transaction, on the basis of the benefit to New Zealand test, where—

(a)

the application is on the basis of the modified benefit test for farm land; and

(b)

the determination is made by the regulator under delegation—

(whether or not the transaction also results in an overseas investment in significant business assets), payable—

(c)

on making application

13,300
(d)

after acceptance of application if the application is complex

119,600
(e)

after acceptance of application if the application is not complex

51,700
(f)

for monitoring compliance

9,000
16

For consent for a transaction involving—

(a)

any other land decision on the basis of the benefit to New Zealand test (other than on the basis of section 16A(4) of the Act (the special test relating to forestry activities)); and

(b)

a business decision,—

payable—

(c)

on making application

13,300
(d)

after acceptance of application if the application is complex

67,900
(e)

after acceptance of application if the application is not complex

27,900
(f)

for monitoring compliance

4,400
17

For consent for a transaction involving—

(a)

any other land decision that is either on the basis of section 16A(4) of the Act (the special test relating to forestry activities) or not on the basis of the benefit to New Zealand test; and

(b)

a business decision,—

payable—

(c)

on making application

13,300
(d)

after acceptance of application

27,900
(e)

for monitoring compliance

4,400
18For consent for a transaction involving a business decision only—
(a)

on making application

13,300
(b)

after acceptance of application

22,100
(c)

for monitoring compliance

3,400

Part 4 Applications relating to overseas investment in fishing quota

The fees and charges in this Part apply to applications relating to transactions that will result in an overseas investment in fishing quota, whether or not the transaction also results in an overseas investment in sensitive land or an overseas investment in significant business assets.

Matter for which fee or charge payable and when and how payable($)
19For consent for a transaction, payable—
(a)

on making application

13,300
(b)

after acceptance of application

119,600
(c)

for monitoring compliance

3,400

Part 5 Applications relating to transaction of national interest

The fee in this Part is payable in addition to any fee for consent for a transaction set out in any other Part of this schedule.

Matter for which fee payable and when and how payable($)
20

For consent for a transaction of national interest, payable—

(a)

if the transaction is identified as a transaction of national interest by the applicant in the application, after acceptance of application; or

(b)

if the Minister notifies the applicant under section 20A(2) or 20B(1) of the Act,—

(i)

on the issue of an invoice by or on behalf of the regulator; and

(ii)

within the time frame specified in the invoice

83,700

Part 6 Applications for individual exemption or variation of consent or conditions of consent

Matter for which fee or charge payable and when and how payable($)
21For an exemption under section 20AA(3) of the Act (exemptions from definition), payable on making application25,500
22For an exemption by way of addition to Schedule 3 (which relates to portfolio investors) or Schedule 4 (which relates to New Zealand controlled persons), payable on the issue of an invoice by or on behalf of the regulator and within the time frame specified in the invoice$560 per hour spent considering the application or monitoring compliance
23For any other exemption under section 61D of the Act (Minister may grant individual exemptions), payable on making application37,100
24For a variation of consent or a condition of consent (including addition to and revocation of a condition of consent), where the consent was granted on the basis of section 16(1)(b)(i)(A) or section 16(1)(d)(i) of the Act (the commitment to reside in New Zealand test), or clause 1 of Schedule 4 of the Act (residential land: commitment to reside in New Zealand standing consents), payable on making application3,400
25For a variation of consent or a condition of consent, where the only variation is to extend the specified period within which a matter must occur or to extend the use-by-date of the consent and where item 24 does not apply, payable on making application10,400
26For any other variation of consent or condition of consent (including addition to and revocation of condition of consent), payable on making application23,000

Part 7 Other applications

A fee or charge under this Part is payable on making the application.

Matter for which fee or charge payable and when and how payable($)
27For an exemption under section 20(5) of the Act (exemptions from farm land offer criterion)13,000
28

For an assessment under section 29A(1) of the Act if a person or persons (A) have previously met the investor test (whether under section 18A or section 29A(1)) and the assessment is either or both of the following:

(a)

a reassessment of A because of a change in the extent to which investor test factors were established or not established since the investor test was last met:

(b)

an assessment of persons that could apply under section 29A(7) with A

13,000
29For any other assessment under section 29A of the Act25,500
30Discount to be deducted from the total fees in this schedule relating to an application for consent, for any application— 12,500
(a)

in respect of which all of the persons that are required to meet the investor test in respect of the overseas investment (see section 18A(2) of the Act) have previously met the investor test; and

(b)

to which section 29A(3) and (4) of the Act applies

Part 8 Information and services

A fee or charge in this Part is payable on the issue of an invoice by or on behalf of the regulator and within the time frame specified in the invoice.

Matter for which fee or charge payable and when and how payable($)
31For each request for provision of information or services$337 per hour

Michael Webster,
Clerk of the Executive Council.

Explanatory note

This note is not part of the regulations, but is intended to indicate their general effect.

These regulations, which come into force on 13 September 2021, alter the fees payable for matters under the Overseas Investment Act 2005. The fees and charges include goods and services tax.

Cost recovery impact statement

Land Information New Zealand produced a cost recovery impact statement on 7 May 2021 to help inform the decisions taken by the Government relating to the contents of this instrument.

A copy of this cost recovery impact statement can be found at—

Issued under the authority of the Legislation Act 2012.

Date of notification in Gazette: 12 August 2021.

These regulations are administered by the Treasury.