The potential impacts of the options proposed

Option 1: Incentivising incomes, skills and New Zealand content

This option reflects the least amount of change to current settings and may improve skills development in the sector. However, it would require productions to pay an additional production cost by way of a levy or skills development plan, which might have an impact on New Zealand’s attractiveness as a film location.

This option might have greater impact on NZSPG-NZ domestic productions. Domestic productions, excluding co-productions would need to satisfy new cultural content and creative talent criteria that seek to achieve cultural and creative objectives in a clear and targeted way. Some domestic productions, depending on how the settings of the criteria are finalised, might not receive funding. However, the opportunity to recalibrate the settings for the Significant New Zealand Content test would better align with our objective to support the development of high-quality, compelling New Zealand content and build and showcase creative talent.  

Option 2: Incentivising business growth, incomes, skills and New Zealand content

This option involves a more substantive level of change and might result in more significant impact. In addition to the impacts identified under Option 1, the repeat activity uplift and/or cap could support a more consistent pipeline of production work for the sector which in turn might support growth in firms and careers.

It is difficult to know at this stage how international productions would be impacted by this change. On one hand they would continue to be eligible for the 20% NZSPG-Int. However, the introduction of a project cap might mean that significantly large productions would no longer come to New Zealand. Opening an additional 5% to repeat activity would give more opportunity for international productions to access additional incentives.

New cultural content and creative talent criteria might have a significant impact on official co-productions and could reduce the number applying for the NZSPG-NZ. Official co-productions that chose to apply and meet the new cultural content and creative talent criteria would be more likely to provide cultural benefits than under the status quo.

Comparison of the two new options against the current NZSPG settings

<Option 2 | Other matters we seek feedback on>