The Government has announced changes this morning – to be implemented from January – that will lift New Zealand’s competitiveness against countries such as Australia (which has a rebate of up to 40%), Ireland (32%), UK (29%), and Canada (up to 29%).
The changes here include lowering the minimum spend for feature films to qualify for the rebate – from $15 million to $4m.
As well, the threshold for productions to access the extra 5% uplift will drop from $30m to $20m, to help attract more mid-budget productions.
The 5% uplift will also include post-production, digital and visual effects (PDV)-only projects.
Officials will also remove the cap on how much international productions can claim for “above the line” roles, such as director, producer, principal cast or screenwriter.
The changes were announced by Economic Growth Minister Nicola Willis in Auckland, at a function where actor Cliff Curtis and NZ Film Commission chief executive Annie Murray also spoke.
Curtis told Newstalk ZB that the changes were “crucial”.
“Without these incentive improvements… we were looking at a very grim downcycle, but this is going to give us a foothold in the global market.
Actor Cliff Curtis at today’s announcement that the screen production rebate is being boosted. Photo / Michael Craig
“Also, the minister and the ministry have been smart enough to diversify the incentives to include local storytellers’ smaller projects.
“That’s where the young talent comes through, like my daughter. They’re not going to go straight into making a $100 million movie, are they?
“They’ve got to start somewhere. So our local storytellers … that’s what makes a local market more attractive to global investors.”
Rebate benefits
Willis said the updated settings would be funded through the additional $577 million already announced in the Budget.
“These changes ensure New Zealand remains a serious contender in an increasingly competitive global screen industry,” said Willis.
Economic Growth Minister Nicola Willis at today’s announcement about a boost to the screen production rebate. Photo / Michael Craig
“They will help diversify our screen economy, build stronger partnerships in growing markets across Asia and the Middle East, and keep Kiwi talent in steady work while attracting new investment, skills and technology.”
New Zealand’s screen sector supported around 24,000 jobs and contributed $3.5 billion a year to GDP. Every dollar invested through the rebate delivered around $2.40 in return to the wider economy — through wages, services and international exposure.
The NZ Film Commission has previously cited specific examples of the economic benefit of international shows that were produced here, including Netflix’s Sweet Tooth: NZ$6.91 was generated in GDP for every $1 rebated, with more than 1180 jobs and 950 New Zealand businesses directly benefiting, according to a study.
“Modern screen production is borderless and dynamic,” said Willis.
“By staying agile and globally connected, we can turn Kiwi creativity into [a] competitive advantage — keeping New Zealand on the world stage and growing one of our most distinctive export industries.”
NZ Film Commission chief executive Annie Murray.
The rebate has been in place since 2014 – and has sometimes attracted political noise. The New Zealand Film Commission, which administers the rebate, says it is essential for the growth of the screen industry.
In the eight years to 2022, about $1.15 billion has been paid out through the rebate scheme, with those productions spending about $5.2b in the same period in New Zealand.
Films such as Avatar, The Hobbit, Mulan, and Deadpool & Wolverine have all qualified for the rebate, among dozens of others.
Murray said: “International productions are an essential part of New Zealand’s screen ecosystem. They generate export income and boost economic growth with flow-on benefits not just to creative industries but to tourism, hospitality, construction, and technology, they also create a sustainable pipeline for our local screen workforce and businesses.
“One of the advantages of the rebate is it’s a straightforward cash incentive (simple to claim and not tied to tax), with the New Zealand dollar offering excellent value for international productions.
“These benefits, combined with the announced changes, mean New Zealand is better positioned to compete with other territories offering incentives, demonstrating our ability to remain agile in a global screen production environment that is continually evolving.”
Industry reaction
Screen NZ International executive chairwoman Mel Turner said: “We welcome any changes to the Screen Production Rebate which make it easier and more compelling for studios and production companies to consider filming in New Zealand.
Screen NZ International executive chair Mel Turner.
“We are grateful to the minister and MBIE for taking on board the feedback from the international screen production sector and responding so promptly.
“Our industry survey conducted in July, together with other research and modelling, highlighted a sharp decline in production activity and underscored the urgent need for change to improve New Zealand’s international competitiveness.”
SNZI vice chair Harry Harrison said the changes were pragmatic.
“They provide a more competitive framework to a broader range of international productions considering New Zealand and have the potential to generate economic stimulus at home, with sustainable business activity and local employment.”
Graham Dunstan of Auckland Actors said it was great that the Government had listened to the industry.
He pointed out how the system worked. “There is no rebate unless there has been certified spending. The scheme is self-funding, the rebate is applied after the money has passed into the NZ economy.”
Editor-at-Large Shayne Currie is one of New Zealand’s most experienced senior journalists and media leaders. He has held executive and senior editorial roles at NZME including Managing Editor, NZ Herald Editor and Herald on Sunday Editor and has a small shareholding in NZME.