Higher NZ-OZ investment thresholds good for NZ business
Higher NZ-OZ investment thresholds good for NZ business
Raising the thresholds for Trans-Tasman investment in New Zealand is a positive move which will make it easier for private equity funds to invest into growing New Zealand companies, according to the New Zealand Private Equity and Venture Capital Association.
Prime Minister John Key and Australian Prime Minister Julia Gillard will sign the CER Investment Protocol during Ms Gillard’s visit to New Zealand, which sets higher thresholds for investment that does not go through a screening process.
Colin McKinnon, executive director of NZVCA, said private equity investment in New Zealand already includes substantial Australian investment activity.
“Australian private equity funds have been active in New Zealand for many years. These changes will make it easier for them to help build strong New Zealand based companies providing employment for Kiwis and paying New Zealand taxes.
“Moreover, privately owned companies in New Zealand are also active investors in Australia. These changes likewise help to encourage more investment in Australia.
“In 2009 private equity and venture capital investment activity in New Zealand totalled $177.6 million. Private equity is an important source of capital, and New Zealand businesses benefit from it. Raising the thresholds is a positive move.
“Australian private equity fund managers are active members of the NZVCA helping to promote the industry and the asset class on both a domestic and international basis and working to create a world-class venture capital and private equity environment.”
ENDS