Competitive Business Settings
Update 16 September 2025
A competitive business environment is vital for a small, open economy like New Zealand. It helps businesses of all sizes by keeping costs and rules manageable, encouraging investment and innovation, and supporting productivity and growth.
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Ultimately, this leads to more jobs, better products, and a more resilient economy. But when regulations are too complex or restrictive, they slow investment, limit innovation, and reduce consumer choice. The Government is focused on making it easier for businesses to operate and grow, ultimately building a more agile, innovative, and productive economy.
Since Going For Growth began, the Government has taken concrete steps to strengthen competitive business settings, including:
- Introducing Investment Boost to encourage businesses to invest in growth-enhancing assets, making them more productive, competitive and able to pay higher wages.
- Passing the Customer and Product Data Act and agreeing to apply it to the banking sector to enable
open banking. - Completing the Commerce Commission governance review and the review of New Zealand’s competition settings.
- Setting up an express lane for supermarket developments to boost competition in the grocery sector.
Responding to business needs
Every day, business owners identify new opportunities and face challenges in turning those opportunities into reality. Since the launch of Going For Growth, Ministers have been engaging directly with Kiwi businesses to understand what’s needed to strengthen New Zealand’s business environment. Businesses have consistently called for:
- reduce regulatory burden to make it easier to operate
- stronger incentives for capital investment to support expansion and innovation
- more competitive energy and banking sectors to lower costs and improve service
- greater access to Government procurement for New Zealand-based firms.
These (and other) insights are shaping the Government’s growth-oriented policy agenda and helping to reset New Zealand’s business landscape so opportunities can be realised faster and with fewer barriers and red tape.
Case studies
Improving grocery sector competition
New Zealand grocery prices are high by international standards, and Kiwi shoppers are missing out on competitive grocery offerings. A lack of competition is a main reason for this; something this Government is committed to addressing. To make it easier and faster for new grocery developments to be built across New Zealand, the Government is launching reforms expected to be in place at the end of the year:
- Fast-track supermarkets: The fast-track process will be changed so that grocery developers with the potential to increase competition have more certainty and confidence over how to access it. Other workability improvements will also see timeframes for fast-track approvals reduced by over 6 weeks.
- One-stop shop for building consents: A single streamlined building consent process that will provide certainty and consistency for nationwide developments.
- MultiProof design approvals: Grocery chains and other developments will be able to replicate approved designs across the country with a streamlined process.
These reforms are part of a comprehensive programme of work that includes exploring options to strengthen government’s tools to address anti-competitive behaviour, and investigating the potential for structural changes to the market.
Updating New Zealand's competition settings
New Zealand’s competition law has not kept pace with increasingly concentrated markets. Outdated rules have made it difficult for new businesses to enter and for the Commerce Commission to act quickly when dominant firms block rivals.
The Government is modernising the Commerce Act so that problems can be addressed when they arise – such as stopping supermarkets from buying land just to block new competitors, tackling serial acquisitions of dentists or vet clinics that leave families with fewer options, or preventing large building suppliers from undercutting smaller rivals only to lift prices later.
An independent review of the Commission, led by Dame Paula Rebstock, also found that the Commission had outgrown its governance model, with the board responsible for both governance and regulatory decision making. This dual role, combined with a significantly increased workload, is contributing to delays and complexity. The Government is separating governance and regulatory functions to ensure the Commission can act faster and deliver better outcomes for consumers.
Together, these changes will make markets more open and competitive, reduce costs for businesses trying to grow, and ensure Kiwi consumers benefit from lower prices and more choice and innovation.
Investment Boost
Introduced in Budget 2025, this new tax incentive allows any business to accelerate depreciation of capital assets by immediately deducting 20% of the cost of eligible assets from their tax bill.
Speeding up depreciation means a lower tax bill in the year an asset is purchased, improving cashflow and making more potential investments stack up financially.
The Government has heard many businesses are already acting – investing in equipment, machinery, or technology. Investment Boost applies broadly, not just to traditional assets like farm equipment, vehicles, buildings, and energy infrastructure, but also to advanced technologies.
The goals is clear: encourage businesses to invest in assets that lift productivity, sharpen competitiveness and support higher wages.
Making agricultural product approvals faster and smarter
New Zealand’s farmers and growers - our largest tradeable sector - face delays and complex regulatory processes when trying to get hold of the new agricultural and horticultural products that would keep them globally competitive.
To fix this, the Government is implementing reforms to streamline approvals and cut red tape:
- Faster product approvals: Long wait times and duplicated processes across agencies are being reduced. International approvals will be better recognised to speed things up.
- Clearer requirements: Application processes will be simplified and made more transparent, giving producers more certainty.
- Omnibus Bill for reform: Cabinet has endorsed 16 recommendations to overhaul the system, with legislation underway to deliver the changes.
These reforms are expected to unlock $272 million in economic benefits over 20 years, while helping farmers access safer, more sustainable products faster.
Enable Open Banking to facilitate competition, innovation and productivity
Open Banking is a modern way for consumers and businesses to securely share financial data with trusted third-party providers. The passage of the Customer and Product Data Act in 2025 marked a major milestone toward Open Banking and a more dynamic and innovative banking sector.
Open Banking will make it easier for New Zealanders to get better deals, have more control over their financial data, and make use of innovative banking or financial services. It will encourage new entrants in the banking and finance sector, and allow these businesses to offer more personalised and competitive financial products and services.
The Government is developing Regulations under the Act that will require ANZ, ASB, BNZ and Westpac to provide Open Banking from 1 December 2025, and Kiwibank in 2026.
Government's actions
The Government has delivered 14 actions under the Competitive Business Settings part of Going For Growth. Since February, 10 new actions to support competitive business settings have been identified and started.
Delivered
Delivered since February 2025
- Passed the Customer and Product Data Act, enabling data portability in the banking sector to drive competition and innovation, and agreed to apply the Act to the banking sector.
Unlocking data to increase competition and choice(external link) — Beehive.govt.nz - Implemented Investment Boost to reduce upfront costs for capital investment.
Investment Boost tax incentive takes effect immediately(external link) — Beehive.govt.nz - Passed tax simplification measures through the Taxation (Annual Rates for 2024–25, Emergency Response, and Remedial Measures) Act to reduce complexity and compliance costs in the tax system.
Taxation (Annual Rates for 2024–25, Emergency Response, and Remedial Measures) Act 2025(external link) — Inland Revenue Te Tari Taake - Removed the prospective financial information requirement at the initial public offering stage, reducing costs and complexity in our capital market settings.
Financial Markets Conduct Amendment Regulations 2025 (SL 2025/86)(external link) — New Zealand Legislation - Completed sector reviews for:
- agricultural and horticultural products, to improve the availability of new products to New Zealand’s farmers and horticulturalists and lift the productivity of both sectors
Agricultural and horticultural products regulatory review(external link) — Ministry for Regulation - hairdressing and barbering, to remove outdated rules and thereby reduce costs of compliance in this largely small-business sector.
Hairdressing and barbering regulations given the cut(external link) — Beehive.govt.nz
- agricultural and horticultural products, to improve the availability of new products to New Zealand’s farmers and horticulturalists and lift the productivity of both sectors
- Concluded the Governance and Effectiveness Review of the Commerce Commission and decided on response.
- Completed the review of New Zealand’s competition settings and decided on changes to the Commerce Act.(external link)
Delivered prior to February 2025
- Repealed so-called ‘Fair Pay Agreements’, which reduced flexibility and increased costs for employers.
The repeal of Fair Pay Agreements legislation(external link) — Employment New Zealand - Extended 90 Day Trials to all employers so they can take a chance on a new employee.
Extending 90-day trial periods to all employers(external link) — Beehive.govt.nz - Revoked overly prescriptive affordability requirements for accessing credit through amendments to the Credit Contracts and Consumer Finance Act.
Supporting better financial outcomes for Kiwis(external link) — Beehive.govt.nz - Passed the Contracts of Insurance Act to modernise insurance law.
Safeguarding Kiwis with modern insurance law(external link) — Beehive.govt.nz - Conducted a sector review of Early Childhood Education to help early childhood education centres safely educate and care for our children without excessive compliance requirements and costs.
Review recommends ECE regulation shakeup(external link) — Beehive.govt.nz - Launched a review of New Zealand’s competition rules to combat monopolies and improve economic productivity.
Major review of competition to lift productivity(external link) — Beehive.govt.nz
Underway
New actions since February 2025
- Drafting legislation to amend the Commerce Act to ensure economy-wide competition settings are fit for purpose.
- Implementing the Government’s response to the Governance and Effectiveness Review of the Commerce Commission.
Refreshing competition settings - Strengthening trans-Tasman and international regulatory standards alignment to reduce duplication and compliance costs for businesses operating across borders.
- Developing a joint government and industry anti-scam response to ensure that consumers and businesses can transact confidently online.
New Zealand launches Anti-Scam Alliance(external link) — Beehive.govt.nz - Initiating a sector review of the telecommunications sector to reduce complexity and ensure the settings are right to enable innovation in the sector.
Have your say on the Telco Sector Review(external link) — Beehive.govt.nz - Reviewing the regulation of product labelling to allow for more innovative ways of communicating key.
Regulation Ministry to tackle 30 different product labelling regulations(external link) — Beehive.govt.nz - Reviewing the Crown Pastoral Land Act to support economic growth through productive use of Crown land.
- Progressing amendments to the Māori Trustee Act to unlock funding and improve land productivity.
- Engaging with financial institutions to improve Māori access to capital, including developing data collection process.
- Enhancing monitoring and evaluation of funds available for Māori in support of Māori economic development.
Actions underway prior to February 2025
- Continuing work on implementing the recommendations from the Commerce Commission’s review of competition in into personal banking services and responding to Select Committee inquiry into banking competition.
Delivering more competitive banking for Kiwis(external link) — Beehive.govt.nz - Progressing work on electricity market reform to ensure access to reliable and affordable electricity.
Review of electricity market performance - Progressing work to improve competition in the grocery sector, including reforms to make it easier and faster for new supermarkets to be built across New Zealand.
Annual Grocery Report(external link) — Commerce Commission - Continuing to focus on ensuring that tax settings enable economic growth.
- Progressing reform of health and safety laws to reduce the compliance burden on employers and improve the focus on critical risks.
Health and safety reform - Progressing reforms of the Holidays Act and Employment Relations Act, to simplify them, give businesses certainty, and reduce compliance costs.
Employment Relations Act 2000 amendments
Holidays Act reform - Progressing work on legislation to streamline financial services regulations and cut red tape.
2024-25 financial services reforms - Progressing work to modernise, simplify and digitise key legislation for businesses, including improving the patenting process for New Zealand businesses.
Modernising the Companies Act 1993 and making other improvements for business - Continuing to improve capital markets settings and encourage investment in New Zealand.
Invigorating New Zealand’s capital markets(external link) — Beehive.govt.nz - Examining settings around Māori land use to enable more productive use of Māori land.
- Implementing the sector review of Early Childhood Education to improve regulatory settings and reduce regulatory burden.
Review recommends ECE regulation shakeup(external link) — Beehive.govt.nz - Progressing the Regulatory Standards Bill to bring greater scrutiny to regulatory restrictions.
The Regulatory Standards Bill(external link) — Ministry for Regulation - Improving the Government Procurement Rules to reduce red tape and ensure spending, promotes competition and supports New Zealand businesses.
More information
An update to the Competitive Business Settings pillar was published on 16 September 2025.
Going for Growth: Competitive Business Settings update - September 2025 [PDF, 779 KB]