Australia and New Zealand Foreign Direct Investment Attractiveness Survey 2026

Australia and New Zealand are among the world’s most admired investment destinations. But the qualities investors admire about our countries aren’t necessarily those that determine where capital flows.

In brief:

• Investors value the quality of life, political stability and sustainability credentials on both sides of the Tasman.
• But other factors – workforce capability, labour costs, level of R&D, and innovation and tax competitiveness – guide investment decisions.
• Our nations’ future competitiveness will depend on converting reputation into execution.

For decades, Australia and New Zealand have sold a simple story to the world: we are prosperous, safe, and stable places to invest. That story has served us well.

Strong institutions, trusted legal systems, transparent markets and high living standards helped attract global capital. But in a more geopolitically fragile, fragmented and technology-intensive global economy, capital is becoming more selective.

Beyond quality of life, safety, diversity and culture, investors are focused on the ability to turn ideas into commercial outcomes, mobilise talent, deliver projects and scale growth.

Friction points

Regulatory complexity emerged as one of the clearest friction points. Only 16% of respondents viewed Australia's approvals processes for foreign investment as “not at all restrictive”. In New Zealand, the figure was 5%.

While both countries have introduced reforms to improve investment pathways, the findings suggest investors continue to perceive approval processes as complex and difficult to navigate.

This matters because capital is mobile. Investors are not simply comparing tax rates or labour costs. They are comparing the ease with which opportunities can be converted into value. Markets that can provide talent, infrastructure, policy certainty and efficient project delivery are increasingly gaining an edge.

Australia and New Zealand have been prosperous, safe and stable places to invest, but must do more to continue to attract capital. Investors increasingly prioritise countries that are agile, build capability and adapt to change.

Three priority areas for future competitiveness

The report identifies three strategic priorities for governments and policymakers to consider.

1. Innovation, AI and the digital economy

Almost half (46%) of investors said improving technology infrastructure should be the top priority for Australia and New Zealand to strengthen attractiveness for AI investment and innovation.

In response, the report suggests pre-zoned, investment-ready data centre precincts are one of the highest-leverage economic opportunities available to both countries, supported by abundant renewable energy resources, available land and strong international connectivity.

2. Workforce, mobility and productivity

Three in 10 investors who redirected capital away from Australia and New Zealand cited better access to technology or skilled labour elsewhere as a contributing factor. The report explains the role of targeted migration settings, fast-track arrangements for specialised talent and stronger workforce development pathways in addressing these challenges.

3. Tax competitiveness and investment certainty

Investors consistently identified tax certainty and predictability as important elements of an attractive investment environment. In fact, 19% of those surveyed said a lack of stable, predictable and competitive tax settings are a leading risk to the future attractiveness of Australia and New Zealand.

The report suggests that tax settings should be considered as part of a broader competitiveness agenda encompassing investment certainty, regulatory efficiency and business confidence.