From 1 December 2024, Resale Royalties Aotearoa (RRA) will collect and distribute royalties under the Artist Resale Royalty Scheme on behalf of eligible visual artists.  

RRA administers the Artist Resale Royalty Scheme.  
Register here

Purpose

The Artist Resale Royalty Scheme will enable eligible artists (or their successors) to receive a royalty payment each time there is a qualifying resale of their original visual artwork. 

RRA will collect and distribute the royalties to eligible artists (and their successors).    

Legislation

The Resale Right for Visual Artists Act 2023, and the Resale Right for Visual Artists Regulations 2024 will come into force on 1 December 2024.

Visual artists (and their successors)

Please register your interest with RRA to ensure timely payment to you. 

Registering your eligibility in advance greatly assists RRA to administer the scheme on your behalf.  It assists RRA to identify, collect, & distribute your royalty payments to you in a timely fashion.  

Read more or our Guide: Information for Artists & Successors.

Register now

Art Market
 Professionals

Art Market Professionals have certain obligations and liabilities under the Scheme.  These are explained in our Guide: Information for Art Market Professionals. 

View profiles of New Zealands largest auction houses here.

Please register to stay informed about your obligations under the scheme, and to receive administrative support with compliance.  

Register now

Criteria

An “eligible artist” (or their successor) has a right to be paid a resale royalty each time there is a “qualifying resale” of an “original visual artwork” by that artist (provided the resale right has not “expired” at the time of resale)

  • Is there a “qualifying resale”?

    Checklist 1: If all three criteria below are checked, the resale is a “qualifying resale”

    • The resale value must be $2,000 NZD (excl. GST) or greater
    • The contract for the resale must be entered into on or after the commencement date of the Act (1st December 2024)
    • The sale must be a “Professional Resale” or a “Voluntary Qualifying Resale”

    Note:

    “Resale” does not include the first transfer of ownership of the artwork (irrespective of whether the first transfer of ownership was made for money or other consideration).

  • Of an “original visual artwork”?

    Checklist 2.1 If any of the criteria below is met, the work is a “visual artwork”

    • cultural expressions of Māori or Pacific peoples;
    • painting, drawing, carving, engraving, etching, lithography, woodcutting, printing (including a book of prints) ;
    • sculpture, collage, modelling;
    • craftwork, ceramics, glassware, jewellery, textiles, weaving, metalware, furniture;
    • photography or video art;
    • multimedia art;
    • art created using computers or other electronic devices;
    • ethnic or cultural art that is a variation of any type of work described above in the 2nd through final bullets.

    However, visual artwork does not include:

    • a building*; or
    • a dramatic work* or musical work*; or
    • a literary work*, unless it is a compilation that includes a visual artwork.

    (* These terms are defined in s 2(1) of the Copyright Act 1993)

    Checklist 2.2: To be an “original”, the visual artwork must have been:

    • Created by, or under the authority of, the artist; or
    • One of a limited number of copies of visual artwork made by that artist or under their authority.

  • Is the artist an “eligible artist”?

    Checklist 3.1:   IF the artist is alive at the time the contract for resale is entered into:  is the artist:

    • a New Zealand Citizen, or a person domiciled or resident in New Zealand; or
    • a citizen or subject of, or a person domiciled or resident in,  a “reciprocating country” At the time of publication this includes Australia and the United Kingdom.

    If you ticked either of these boxes, then the artist is an eligible artist.

    Checklist 3.2:  IF the artist is deceased at the time the contract for resale is entered into:  at the time of their death was the artist: 

    • a New Zealand Citizen, or a person domiciled or resident in New Zealand; or
    • a citizen or subject of, or a person domiciled or resident in, a reciprocating country

    If you ticked either of the above, then the deceased artist is an eligible artist.  Although the eligible artist is deceased, the resale right is held by their successor(s) (meaning the successor(s) are entitled to payment of the royalty, provided they meet the same criteria for eligibility (above).

  • If the eligible artist is DECEASED, check whether the resale right had expired at the time of the resale

    In the case of deceased eligible artists, their resale right may or may not have expired.  A resale royalty will only be payable if the contract for the resale was entered into on or before the following expiry dates (as applicable):

    • (where the artwork is by a single artist) – the expiry date is 50 years from the end of the calendar year in which the artist died
    • (where the artwork was created jointly by 2 or more artists) – the expiry date is 50 years passed from the end of the calendar year in which the last of those artists died.

    If the resale contract was entered on or before the expiry date, a resale royalty is payable.

    If the resale contract was entered into after the expiry date, no resale royalty is payable.

    Deceased Artists:  After an artist’s death, the right to receive the resale royalty payment passes to their successor.  However, the successor must meet the same eligibility requirement to receive payment (meaning they are a citizen or domiciled or resident in New Zealand or a reciprocating country (or in the case of a body corporate, they are incorporated, registered, or carrying on business in New Zealand or a reciprocating country).

    However, in the case of deceased eligible artists, their resale right may or may not have expired.  To check an expiry date see STEP 4 (above).

About Us

Resale Royalties Aotearoa Toi Huarau (RRA) will administer the Artist Resale Royalty scheme on behalf of eligible artists (and their successors).   

Our name

Our Māori name Toi Huarau means ‘art of many benefits, for many people’; toi meaning art or artwork; hua meaning benefit, fruit; rau meaning many or numerous.

Our name is inspired by our kaupapa of providing mutual benefit to visual artists and their successive generations, as well as the wider visual arts community.

Our role

RRA is a non-for-profit organisation established to administer the Artist Resale Royalty scheme in accordance with the Act, and the Regulations.  It is a wholly-owned subsidiary of Copyright Licensing New Zealand (CLNZ), who were appointed by the Minister for Arts, Culture, and Heritage as the collection agency for the purposes of the Act.   

The scheme will be fully operational on 1st December 2024.  

About the Scheme

Scheme purpose

The purpose of the scheme is to enable eligible artists (or their successors) to receive a royalty payment each time there is a qualifying resale of their original visual artwork.

How does the scheme operate?

Each time a resale meets the Criteria, the seller (and their agent) must pay a resale royalty (5% of the resale value) to the Collection Agency.   

  • Certain parties involved in the qualifying resale are obliged to provide information to the Collection Agency about the resale (such as the name of the artwork, the resale value, and the name of the original artist).  This helps the Collection Agency verify information about the resale and about artist eligibility.   
  • The Collection Agency will then use its best endeavours to distribute the royalty to the eligible artists (or their successors) in accordance with the Act and Regulations. 

When does the scheme start?

The scheme will be operational from December 1st 2024.  Register your details now.

How much is the resale royalty payment?

Eligible artists can receive a royalty payment of 5% of the resale value (minus administration costs) each time there is a qualifying resale of their original visual artwork.  The collection and distribution of the payment is managed by Resale Royalties Aotearoa, a not-for-profit, who will retain 1% of the resale value to fund its collection, distribution, and other functions

Who will operate the scheme?

The Minister for arts, culture, and heritage has appointed Copyright Licensing New Zealand (CLNZ) as the collection agency for the purposes of the Artist Resale Royalty Scheme. The scheme will be operated by a new not-for-profit subsidiary named Resale Royalties Aotearoa Toi Huarau.

When is a royalty payable?

Not every “resale” qualifies for a resale royalty.  Check out the Criteria section above.

FAQs

  • How does the scheme apply to GLAM organisations?

    This section applies to:

    • publicly funded art galleries; and
    • publicly funded museums, libraries, and archives that collect and display artworks (“GLAM”). 

    Three ways the Scheme affects GLAM:

    1. GLAM are not Art Market Professionals (AMPs). 
    2. However, resales involving GLAM do fall within the Scheme.  If any GLAM is involved in a resale of original visual artwork it may still count as a “professional resale”  (and therefore a “qualifying resale”).  (See Step 1 of the Criteria to learn what a qualifying resale is). 
    3. GLAM don’t have liability for paying the royalty.  Generally, GLAM aren’t required to report to RRA on qualifying resales either, UNLESS there are no Art Market Professionals involved in the resale.  In that event, then each GLAM  will be responsible for reporting information about the resale to RRA.

  • How much is the resale royalty payment?

    The amount is the same for both eligible artists and successors, who can receive a royalty payment of 5% of the resale value (minus administration costs) each time there is a qualifying resale of their original visual artwork. 

    The collection and distribution of the payment is managed by RRA, a not-for-profit.  RRA will distribute 80% of the royalty collected to the eligible right holder (provided they can be found), and retain 20% of the royalty for the purpose of funding its operations under Scheme. This means the artist will receive a net distribution of 4% of the resale value, and RRA will retain 1% of the resale value to fund its collection, distribution, and other functions.

  • What is an “original visual artwork”?

    Checklist 2.1:  If any of the following boxes are checked, the work is a “visual artwork”:  

    • cultural expressions of Māori or Pacific peoples;
    • painting, drawing, carving, engraving, etching, lithography, woodcutting, printing (including a book of prints);
    • sculpture, collage, modelling;
    • craftwork, ceramics, glassware, jewellery, textiles, weaving, metalware, furniture;
    • photography or video art;
    • multimedia art;
    • art created using computers or other electronic devices;
    • ethnic or cultural art that is a variation of any type of work described above in the 2nd through final bullets.

    However, visual artwork does not include:

    • a building*;
    • a dramatic work* or musical work*;
    • a literary work*, unless it is a compilation that includes a visual artwork.

    * (These terms are defined in s 2(1) of the Copyright Act 1993)

    Checklist 2.2: To be an “original”, the visual artwork must have been:

    • Created by, or under the authority of, the artist; or
    • One of a limited number of copies of visual artwork made by that artist or under their authority.

  • What is IRD tax guidance for artists?

    Artists are entitled to receive a payment each time their art is resold (a resale payment). These payments may be taxable.

    If you are an artist who was in business when your artwork first sold, you need to pay income tax on resale payments for that art. This is because resale payments are not taxed before they are paid to artists.

    RRA’s admin fee “is a deductible expense” for artists who are in business.

    Read the full IRD ‘Resale payments for artists’ here.

  • When does the resale right expire?

    In the case of deceased eligible artists, their resale right may or may not have expired.  A resale royalty will only be payable if the contract for the resale was entered into on or before the following expiry dates (as applicable):

    • (where the artwork is by a single artist) – the expiry date is 50 years from the end of the calendar year in which the artist died
    • (where the artwork was created jointly by 2 or more artists) – the expiry date is 50 years passed from the end of the calendar year in which the last of those artists died.

    If the resale contract was entered on or before the expiry date, a resale royalty is payable.

    If the resale contract was entered into after the expiry date, no resale royalty is payable.

    Deceased Artists:  After an artist’s death, the right to receive the resale royalty payment passes to their successor.  However, the successor must meet the same eligibility requirement to receive payment (meaning they are a citizen or domiciled or resident in New Zealand or a reciprocating country (or in the case of a body corporate, they are incorporated, registered, or carrying on business in New Zealand or a reciprocating country).

    However, in the case of deceased eligible artists, their resale right may or may not have expired.  To check an expiry date see STEP 4 in the Criteria section (above).

  • Who is an “eligible artist”?

    Checklist 3.1 IF the artist is alive at the time the contract for resale is entered into:  is the artist:

    • a New Zealand Citizen, or a person domiciled or resident in New Zealand; or
    • a citizen or subject of, or a person domiciled or resident in,  a “reciprocating country”

    If you ticked either of these boxes, then the artist is an eligible artist. 

    Checklist 3.2 IF the artist is deceased at the time the contract for resale is entered into:  at the time of their death was the artist: 

    • a New Zealand Citizen, or a person domiciled or resident in New Zealand; or
    • a citizen or subject of, or a person domiciled or resident in, a reciprocating country

    If you ticked either of the above, then the deceased artist is an eligible artist.  Although the eligible artist is deceased, the resale right is held by their successor(s) (meaning the successor(s) are entitled to payment of the royalty, provided they meet the same criteria for eligibility (above).

  • Who is an Art Market Professional?

    The Act defines “Art Market Professionals” in section 11 as:

    (a) a person who carries on business as an auctioneer (within the meaning of section 5(3) of the Auctioneers Act 2013):

    (b) an art dealer:

    (c) an art consultant:

    (d) the owner or operator of an art gallery that deals in visual artworks:

    (e) any other person who is in the business of dealing in visual artworks.

  • Who is liable to pay the resale royalty?

    The following persons are jointly and severally liable to pay the 5% resale royalty to RRA (section 17, of the Act) :

    • The seller, and either
      • the agent acting for the seller on the resale (usually the AMP); or
      • if the seller does not have an agent, the agent acting for the buyer on the resale; or
      • if there are no agents, the buyer.
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