During the 2020 New Zealand general election, first-time candidate Smith contested the Botany electorate for the ACT Party, where he came third.[5] He had been placed at 11 on the initial ACT Party list but was moved up to 10 after ninth-ranked Stephen Berry withdrew three months before the election.[6][7] ACT received sufficient support for 10 of its members to be elected to Parliament, including Smith.[8][9]
Smith was ACT's spokesperson for land information, commerce and consumer affairs, state owned enterprises, revenue, racing, arts, culture and heritage, and sport and recreation, and associate spokesperson for finance.[10] He was also a member of the Finance and Expenditure Committee.[10]
In his maiden speech, Smith described his political views as liberal and centre-right. He called for increased productivity, quoting quoted American economists Paul Krugman (from The Age of Diminished Expectations)[2][11] and Murray Rothbard.[2] He also called on the government to reduce its spending and debt, and for more houses to be built.[2] In later speeches, he became outspoken on foreign direct investment; he considered increased foreign direct investment would support a more productive and competitive New Zealand economy[12] and, in July 2022, described New Zealand as "like North Korea but without the nukes" in respect of its foreign investment laws.[13]
Smith proposed legislation to exempt investors from OECD countries from the need to receive Overseas Investment Office approval to invest in New Zealand, except in respect of investments in residential land. The Overseas Investment (Exempt Investment from OECD Countries) Amendment Bill, a private member's bill in Smith's name, was introduced into Parliament in August 2021.[14] Its first reading failed 43–77 on 21 September 2023.[14][15]
Smith did not stand for re-election in the 2023 election. He did not give a reason for not seeking to stand again.[16] His expected valedictory statement was cancelled due to illness[17] and his final parliamentary speech was in opposition to the government's Fair News Digital Bargaining Bill.[18] In that final speech, he defined his political views as "anarcho-capitalist" and promoted self-regulation of the media industry in a free market.[18]
