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My picks:
Dented Hearts is really pretty. Folk pop sorta stuff, really clean and sweet.
Justin Joyous, though really new and not well-known (as far as I know) is a pretty good example of a genre/movement, I guess: something I can only describe as Kiwi-indie psych rock. Bands like Lawrence Arabia, UMO, some Split Enz/Crowded House stuff, Phoenix Foundation etc.
Weka: fantastic downbeat/electronica stuff. Check out their remix of the Tiny Ruins track, too.
Kittens of the Internet just got nominated for a Silver Scroll (industry-level songwriting award). Sweet electropop.
Tami Nielson is country/folk, pretty stellar.