Unvaccinated visa holders, permanent residents, and Australians who normally live in New Zealand will from Friday be able to travel in and out of New Zealand without entering Managed Isolation and Quarantine.
In a statement this afternoon, Covid-19 Response Minister Chris Hipkins said the change was being made because the health risks were comparatively lower.
"The high numbers of people in New Zealand who are vaccinated, combined with how common the Omicron variant has become ... means the risk posed to our healthcare system from overseas returnees is now much lower," he said.
He said the Director-General of Health would sign a class exemption allowing the change, which would not prevent people in other groups continuing to apply for exemptions based on individual circumstances.
It will go into effect from 11.59pm on 5 May, with a manual process used to approve Traveller Declarations by unvaccinated people. This would be set up by phone calls to the New Zealand Traveller Declaration Contact Centre.
An online form would also be available for unvaccinated people with residence visas from 13 May.
National's Covid-19 Response spokesperson Chris Bishop said the party was pleased to see the change.
"Frankly it's taken too long. One of the most interesting things, or sad things, about the last few weeks has been the number of permanent residents who have been effectively barred from entering New Zealand. And I, alongside a few other MPs, have dealt with quite sad constituency cases of people rocking up to the airport expecting that they can get on planes and finding that not only can they not get on a plane but there's no MIQ for them anymore.
"We have effectively barred permanent residents from entering New Zealand in the past few weeks, it's worth remembering these guys pay taxes, and permanent residents in New Zealand can vote.
"I've been urging the minister to move and they now have done, I just regret it wasn't a few weeks earlier."
BusinessNZ chief executive Kirk Hope said it was good to see the government apply a pragmatic risk lens and it was time to welcome the world back or risk playing catchup.
"Workers should have the confidence to reconnect with friends and family overseas, without fear they will be prevented from re-entering New Zealand," he said.
"We encourage the government to now apply this mode of thinking across all classes of immigration and bring forward dates for the Reconnecting NZ strategy."