Summer services update
This page sets out the rules that apply to transactions entered into before 16 August 2022, and to applications for consent made before 16 August 2022 (regardless of when the transaction is entered into).
What is investing in forestry?
Investing in forestry can include:
- buying or leasing land to plant a forest on
- buying or leasing an existing forestry operation
- acquiring sensitive land for forestry and another purpose, such as farming.
Investing in forestry rights means buying the rights to establish, maintain and harvest trees on someone else’s land.
Do I need consent?
You must apply for consent if you are an overseas person and you want to:
- buy or lease land that is currently planted for forestry
- buy or lease land to be used for forestry, or
- buy more than 1,000 hectares of forestry rights in a calendar year.
Who can invest without consent?
You do not need to apply for consent to buy forestry rights if:
- you are buying less than 1,000 hectares of forestry rights per calendar year, or
- you are an Australian citizen or an Australian entity (in certain circumstances).
Even if you do not need consent, you may still need to notify us of the investment.
Find out if you need to notify us of a transaction
Help and advice
Contact us to confirm which requirements apply to you, or talk through your options.
Contact the Overseas Investment Office
Types of forestry consents
There are 3 different consent options, depending on what you intend to do with the land:
Special forestry test
This is the most streamlined test. It is for investors who are:
- purchasing land to plant a forest on, or
- buying existing forestry land.
Assessment criteria
Under this test, you are required to:
- use the land exclusively, or nearly exclusively, for forestry activities
- replant after harvesting, unless you are exempt
- only use the land for accommodation to support forestry activities.
You will also need to implement and maintain certain arrangements for the land, including:
- public access
- protection of habitat for indigenous plants and animals
- protection of historic places
- log supply arrangements.
You do not need to include a comparison between the benefits your investment will bring and those provided by the vendor or a New Zealand investor.
Fee
Find information on the OIO fees framework.
General benefit test / forestry benefit test
The forestry benefit test may be used if you plan to use the land only for forestry activities but cannot put in place or keep existing arrangements relating to the land (for example, agreements for public access).
If you intend to buy sensitive land for forestry as well as another purpose (such as farming) or if you do not intend to replant after harvest, you will need to apply under the general benefit test.
Assessment criteria
Applications under these pathways are assessed against the benefit to New Zealand test. The investment must be likely to result in benefit to New Zealand, measured against 7 benefit factors. Benefits are compared to the current state (for the general benefit test) or the continued ownership of the vendor (for the forestry benefit test).
Under the forestry benefit test, you are also required to:
- replant after harvest unless you are exempt
- use the land exclusively, or nearly exclusively, for forestry activities
- only use the land for accommodation to support forestry activities.
Fee
The fee for this consent application depends on the complexity of the application and whether the decision to grant consent lies with Ministers.
Find information on the OIO fees framework.
Standing consents
Investors in forestry or forestry rights may choose to apply for a standing consent. This allows them to apply for consent before identifying the property or land they want to buy.
A standing consent covers a predetermined number of transactions and may have an expiry date.
Assessment criteria
Standing consents are for quality investors with a proven track record. To be granted a standing consent, investors will need to:
- have detailed business plans well advanced
- meet specific conditions
- justify the need for a standing consent over one-off consents
- notify the Overseas Investment Office each time they use the standing consent to enter a transaction.
Fee
Find information on the OIO fees framework.
Apply
The Apply section contains information and resources to help you apply for consent online. We recommend you seek expert legal advice as early as possible and book a pre-application meeting to discuss the requirements before making an application.
Legislation
The Overseas Investment Act 2005 outlines the criteria for consent for overseas investments in forestry:
Conditions for forestry consents - Part 2, Section 16 (c)
Exemptions involving forestry rights - Schedule 3
Standing consents - Schedule 4