Overseas Investment (Forestry) Amendment Act 2022

1: Title
This Act is the Overseas Investment (Forestry) Amendment Act 2022.
2: Commencement
This Act comes into force on the day after the date on which it receives the Royal assent.
3: Principal Act
This Act amends the Overseas Investment Act 2005 2022-08-16 Overseas Investment Act 2005
1: Amendments to Part 2 (consent and conditions regime)
4: Section 16A amended (Benefit to New Zealand test)
1: In section 16A(1AA)
a: item relating to the modified benefit test if land is or includes farm land, second column, after (1D) , (1E), (2)
b: repeal the item relating to the modified benefit test for forestry activities.
2: In section 16A(1B) (3) or
3: Replace section 16A(2) and (3) section 16A(2)
2: Subsection (1C) does not apply if the relevant Ministers are satisfied—
a: that, as a result of the overseas investment, the farm land will, or is likely to, be used exclusively, or nearly exclusively, for forestry activities; and
b: that, whenever a crop of trees is harvested on the farm land, a new crop will be, or is likely to be, established on the farm land to replace the crop that is harvested (subject to subsection (7)); and
c: that the non-occupation outcome will, or is likely to, occur in relation to the farm land (where that outcome in clause 17(3) to (5)
4: Replace section 16A(4)﻿(a)
a: that the relevant land is already used when the transaction is entered into, and will continue to be used, exclusively, or nearly exclusively, for forestry activities; and
5: Replace section 16A(4)﻿(c)
c: that the non-occupation outcome will, or is likely to, occur in relation to the relevant land (where that outcome in clause 17(3) to (5)
6: After section 16A(4)
4A: To avoid doubt, the reference in subsection (2)﻿(a)
7: In section 16A(7)﻿(a) and (b) (2)﻿(d) (2)﻿(b)
8: In section 16A(9) forestry activities forestry activities
a: maintaining a crop of trees:
b: harvesting a crop of trees:
c: maintaining the land during the period between harvesting a crop of trees and establishing a new crop of trees:
d: establishing a crop of trees.
5: Section 16B amended (Conditions for consents relating to sensitive land that is residential land: benefit to New Zealand test)
1: Replace section 16B(2)
2: However, this section does not apply (and see
a: to the extent that the relevant land is farm land and the relevant Ministers are satisfied in accordance with section 16A(2)
b: where the application is being considered in accordance with section 16A(4).
2: In section 16B section 16A(1)﻿(c) section 16A(1)﻿(b)
6: Section 16C amended (Conditions for consents relating to sensitive land that will be used for forestry activities)
1: Replace section 16C(1) and (2)
1: Subsection (2) section 16A(2)
2: If granted, the consent must be made subject to conditions for the purpose of ensuring that the requirements set out in section 16A(2)
2: In section 16C(5) 16A(2)﻿(d) 16A(2)﻿(b)
7: Section 17 amended (Factors for assessing benefit of overseas investments in sensitive land)
In section 17(2) (including where section 16A(3) is being applied)
2: Other amendments
8: Schedule 1AA amended
In Schedule 1AA
a: insert the Part set out in the Schedule
b: make all necessary consequential amendments.
9: Schedule 2 amended
In Schedule 2 clause 17(4)
5: For the purposes of section 16A(2)﻿(c) and (4)﻿(c)
a: accommodation is being provided for the purpose only of supporting forestry activities (as defined in section 16A(9)) being carried out on the farm land (in the case of section 16A(2)﻿(c) section 16A(4)﻿(c)
b: all the buildings being used for that accommodation are located on land on which some or all of those forestry activities are being carried out or on land that adjoins land on which some or all of those forestry activities are being carried out.
10: Schedule 3 amended
1: In Schedule 3, clause 6(4)﻿(b) the combined area of all other forestry rights the combined area of all unconsented forestry rights
2: In Schedule 3, clause 6(5) (4)﻿(b)﻿(i) (4)﻿(b)
3: In Schedule 3, after clause 6(6)
7: In this clause, unconsented forestry right
a: a consent:
b: an exemption in, or an exemption granted under, this Act or the regulations (other than an exemption under this clause).
11: Schedule 4 amended
1: In Schedule 4, clause 3(2)﻿(d) applicant has persons referred to in subclause (2A)
2: In Schedule 4, after clause 3(2)
2A: For the purposes of subclause (2)﻿(d), the persons are the following (viewed as a group):
a: the applicant:
b: the applicant’s associates:
c: the individuals with control of the relevant overseas person.