Milestone in Investment Ties with New Zealand
Joint media release with
The Hon Craig Emerson MP
Minister for Trade and Competitiveness
Minister Assisting the Prime Minister on Asian Century Policy
The Protocol on Investment for the Australia‑New Zealand Closer Economic Relations (CER) agreement takes effect today, marking a milestone in the Trans-Tasman relationship.
From today, investors from both Australia and New Zealand will benefit from lower compliance costs and greater legal certainty when investing in their Trans-Tasman neighbour.
Australia and New Zealand are close partners, with more than A$100 billion in two-way investment.
The start of the Protocol on Investment coincides with the 30th anniversary year of the CER agreement.
"The CER agreement has delivered huge benefits to both countries," Trade Minister Craig Emerson said.
"Trade barriers have been lowered, business costs have come down and jobs have been created."
New Zealand private investors undertaking business acquisitions will now benefit from the higher screening threshold of A$1,078 million (indexed annually), up from A$248 million. In exchange, the screening threshold for Australian private investors in New Zealand is now NZ$477 million (around A$390 million, and indexed annually), up from NZ$100 million (around A$80 million).
"The Protocol on Investment will strengthen both our economies by reducing barriers to investment between Australia and New Zealand," Assistant Treasurer David Bradbury said.
1 March 2013