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 (1^st 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).

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.

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).

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).