NEW ZEALAND Trends and Developments Contributed by: Lance Jones, Olivia Hausmann, Chris Dann, Sam Wilson, Geoff Hosking and Jordan Wright, Anthony Harper
The 2026 Election Casting a shadow over the otherwise-supportive cross-border investment and M&A environment for 2026 is the prospect of the 2026 general election in New Zealand in November. Inevitably, the political (and therefore economic) uncertainty leading up to, during and immediately following the election will once again impact investment decision-making and deal-doing over that period, and the outcome of the election itself could, depending on the policy indications of the post-election government, throw cold water on the pro-investment fire lit by the current government. Summary – What’s in Store? The current government’s prerogative is to be strongly pro-investment, and it has implemented, in a short space of time, a number of major regulatory, tax, structural and policy changes that target, incentivise and reduce barriers to high-value foreign direct invest - ment in core growth sectors. With that foundation and market forces potentially aligning, continued growth in cross-border investment and M&A is expected in the first three quarters of 2026, and there is hope for an encouraging year overall, notwithstanding the likely slowdown around the general election.
ters) Amendment Bill, with the legislation to be enact - ed by mid-2026. Tax changes The government also made two key investment- focused changes in 2025 to New Zealand’s tax rules. In April, the government made significant changes to New Zealand’s much-maligned Foreign Investment Fund rulesso that eligible investors, particularly new migrants and returning New Zealanders, will be able to use a new revenue account-based taxation method that taxes realised returns rather than estimated gains. This change is again intended to support and align with the improved visa pathways and related new OIA consent pathway for investment visa holders, to make New Zealand a more attractive place to invest for high net worth individuals. In May 2025, the government introduced a new scheme, which allows businesses to deduct 20% of the upfront cost of productive assets such as machin - ery, tools and equipment immediately. This creates an income tax saving in the first year but also, perhaps more significantly, allows businesses to accelerate the depreciation of their assets by taking a larger deduc - tion in the year of purchase. This deduction is open to any business and, according to the government, has already had a significant impact on investment in productive assets.
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