Now is the Time for Aussies to Invest in New Zealand Businesses

by Richard Jacobs 28th of July, 2025

Now is the Time for Aussies to Invest in New Zealand Businesses

Earlier this year, I worked with a seasoned Australian investor who acquired a thriving New Zealand business in his industry. When asked why he crossed the Tasman, his answer was simple: “The fundamentals stack up—and the timing couldn’t be better.”

He is not alone. Increasingly, Australian investors are turning their gaze to New Zealand. And with good reason.

A Business-Friendly Budget

The 2025 New Zealand Budget, released just days ago, doubled down on policies to stimulate business growth, attract offshore capital, and streamline the regulatory burden for investors. Minister of Finance Nicola Willis framed it as “a budget for builders, doers and investors,” and many in the business community agree.

A key feature was the NZ$2.9 billion investment boost, allowing New Zealand businesses to immediately deduct 20% of qualifying asset purchases in the first year. For investors acquiring and scaling businesses, this is a powerful tax incentive—particularly in capital- heavy sectors.

Stable, Transparent, and Close to Home

New Zealand ranks consistently among the top countries for ease of doing business. It is politically stable, has a transparent legal framework, and boasts a highly skilled and adaptable workforce. Importantly for Australians, the cultural and business similarities mean very few surprises and the New Zealand’s open-door policy for Australian investors means there are few barriers for Australians setting up, buying, or owning businesses in NEW Zealand.

Easing Lending Environment

The (RBNZ) has been gradually lowering the (OCR), with forecasts suggesting it could reach 3% by the end of 2025.

Additionally, banks have been adjusting downwards their financing test interest rates by as much as 2% on business borrowing, providing greater financial flexibility and a more accommodating credit environment, which is beneficial for foreign investors.

Expert Endorsements

Paul Bloxham, HSBC's Chief Economist for ANZ, noted that New Zealand's economy is poised for growth, with GDP expected to rise by 1.8% in 2025. He emphasised that the country’s stable political environment and proactive economic policies make it an attractive destination for investors.

Similarly, Westpac NZ Chief Economist, Kelly Eckhold, observed that the 2025 Budget’s tax incentives are likely to stimulate business investment and economic activity, further enhancing New Zealand's appeal to foreign investors.

The Undervalued Opportunity

Despite these advantages, many New Zealand SMEs remain undervalued. Baby boomer owners are now looking to exit, according to a 2024 report by ANZ, more than 40% of SMEs are expected to change hands in the next five years creating an opportunity-rich environment for savvy investors..

Final Thought

The Aussie investor I mentioned earlier saw an opportunity to grow his expanding empire by buying a NZ business below the average Australian multiples,

In a time when global markets feel increasingly unpredictable, New Zealand offers a rare combination of proximity, policy support, and pricing arbitrage. As the post-budget sentiment lifts, the Kiwi economy is firmly focused on growth—and Australians are perfectly positioned to take advantage of it.

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