"Targeted updates" to the International Screen Production Rebate will ensure New Zealand retains its edge as a competitive and attractive place for film, television, and streaming productions, the Government says.
The rebate, which has been in place since 2014, allows film companies and producers to receive money back from spending in New Zealand during production.
Currently, New Zealand's rebate rate is 20%, increased to 25% if a project is found to bring wider benefits to the country.
Competing rates include Australia (up to 40%), Ireland (32%), the United Kingdom (29%), and Canada (up to 29%).
Economic Growth Minister Nicola Willis said the changes responded to industry feedback and are designed to maintain New Zealand's edge in an increasingly competitive global market.
"Global competition for large-scale screen productions has intensified, and the settings we inherited were putting New Zealand at risk of missing out.
"These updates modernise the rebate to attract a broader range of productions, create more consistent work for local crews and businesses, and encourage greater foreign investment in our creative industries."
Under the changes, the minimum qualifying spend for feature films would lower from $15 million to $4 million to allow more productions to access the rebate.
The threshold for the 5% increase would lower from $30 million to $20 million to allow for more mid-budget productions, while eligibility for the 5% uplift would expand to post-production, digital and visual effects-only projects.
A cap on above-the-line costs, such as director, producer, principal cast and screenwriter fees, will be removed to align with international practice.
The updated settings, which take effect from January 1, 2026, were funded by the $577 million allocated in Budget 2025, bringing total funding for the International Screen Production Rebates to $1.09 billion over four years, Willis said.
"These changes ensure New Zealand remains a serious contender in an increasingly competitive global screen industry."
The screen sector supports around 24,000 jobs nationwide and contributes $3.5 billion to New Zealand's GDP. The rebate returns $2.40 on every $1 invested, the Government says.
Films such as Avatar, Minecraft, The Hobbit, Mulan, and Deadpool & Wolverine have all qualified for the rebate, among dozens of others.
James Cameron to attend Avatar: Fire and Ash premiere in Wellington
Award-winning director James Cameron has announced he will attend the New Zealand premiere of his new film Avatar: Fire and Ash at Wellington's Embassy Theatre.
The 71-year-old director best known for his Titanic and Avatar films became a New Zealand citizen earlier this year, having lived with his family in South Wairarapa since 2012.
In a statement this morning, it was announced Cameron would attend the Avatar: Fire and Ash premiere at the Embassy Theatre in Wellington on December 13 alongside other special guests.
The first Avatar film, released in 2009, grossed approximately US$2.92 billion worldwide, making it the highest-grossing film of all time.
The second film thrust New Zealand and our screen industry into the spotlight, with Wetā Workshop at the heart of the ground-breaking movie with its underwater visual effects.
Avatar: Fire and Ash will show in New Zealand cinemas from December 18, 2025.
The morning's headlines in 90 seconds, including dozens hurt in Rotorua bus crash, a new summons for Andrew Mountbatten-Windsor, and a pricey slice of high country luxury. (Source: 1News)
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