The New Zealand government announced on November 7, 2025, that it will update its International Screen Production Rebate (ISPR). This government-funded cash rebate, in place since 2014, allows international productions to receive money back from spending in New Zealand. The current program provides a 20% base rebate, which can be increased to 25% if a project is found to bring wider benefits to the country.

The new changes, effective January 1, 2026, are designed to make the incentive more competitive. Key changes include:

• Lowering the minimum qualifying spend for feature films from $15 million to $4 million, opening the rebate to more mid-budget projects.
• Reducing the threshold to access the extra 5% Uplift from $30 million to $20 million, allowing more productions to qualify for the full 25% rate.
• Extending the 5% Uplift to post-production, digital, and visual effects (PDV)-only projects, helping to secure more high-value PDV work for local vendors.
• Removing the cap on “above-the-line” spending for key creative roles, ensuring top global talent like directors, producers, and principal cast can base projects in New Zealand.

This policy change was initiated by the New Zealand Government, which funds the rebate. Other key parties involved include the New Zealand Film Commission, which administers the program, and Screen NZ International, the industry body representing local producers and vendors. Key individuals include New Zealand’s Economic Growth Minister, Nicola Willis; New Zealand Film Commission CEO, Annie Murray; and Screen NZ International Executive Vice Chair, Harry Harrison.

This move is a direct response to escalating incentive offers globally. Australia increased its federal Location Offset to 30% in 2023, which can be combined with state-level incentives to reach a 40% total. The United Kingdom replaced its tax relief with a 34% gross rebate (netting to 25.5%) in 2024 and added a 53% gross rate for independent films. Ireland offers a 32% tax credit. New Zealand’s 25% rate is a necessary catch-up to remain in consideration, but it remains numerically lower than the 30%-40% offered by Australia and the 25.5% net rate in the UK.

The key supply-chain impact is workforce stabilization. The changes aim to provide more consistent work for New Zealand’s skilled crews and vendors, particularly in post-production, digital, and visual effects (PDV). Lowering the entry point to $4 million for feature films should attract a wider variety of productions, smoothing the “boom-and-bust” cycle common in project-based industries. Expanding the 5% uplift to PDV-only projects secures a critical, high-value part of the post-production supply chain.

These changes are a necessary defensive adjustment to prevent further production outflow to Australia and the UK. The 25% rate is a baseline requirement, not a market-leading offer. The most impactful changes are not the headline rate but the structural ones: lowering the entry thresholds and including PDV-only projects. This signals a strategic pivot to secure mid-budget streaming series and feature films, rather than just competing for mega-budget blockbusters, which will likely still be drawn to Australia’s 40% stacked incentives. This update provides immediate stability for the post-production sector, including major vendors like Wētā FX. However, it is unlikely to recapture large-scale physical productions lost to higher-rebate jurisdictions.