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Resale Royalties for artists in Aotearoa New Zealand

Resale Royalty Aotearoa Toi Huarau’s kaupapa is to provide mutual benefit to visual artists and their successive generations, as well as the wider visual arts community.

RRA is a wholly-owned subsidiary of Copyright Licensing New Zealand (CLNZ)

Resale Royalties Aotearoa (RRA) collects and distributes royalties under the Artist Resale Royalty Scheme on behalf of eligible visual artists.    

Register now

Select the Register now link to register with RRA.

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.  

Select the learn more link for more information and a guide for Artists & Successors.

Select the Register now link to register with RRA.

Learn more
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. 

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

Select the learn more link for more information and a guide for Art Market Professionals.

Select the Register now link to register with RRA.

Learn more
Register now

NZ Auction Houses

Webbs

Established in 1976, Webb’s is New Zealand’s oldest auction house. Specialising in the sale of Art, Decorative & Asian Arts, Fine Wines & Whiskies, Jewels & Luxury Accessories, and Collectors’ Cars.

Webb’s has a long and rich history in the art market, with locations in Auckland, Wellington and Christchurch. Take a video tour of the Webb’s museum-quality Mt Eden auction and gallery space, hosted by Senior Art Specialist, Mark Hutchins-Pond.

Art + Object

Art+Object was founded in 2007 with the goal to bring a more contemporary voice to the Australasian auction scene. Directors Leigh Melville and Ben Plumbly bring decades of experience in the art and auction worlds together with significant business and professional achievements.
Art+Object focuses on being an agile, forward thinking auction house specialising in modern and contemporary art, applied art, and rare books. Watch the video for a Directors’ tour of the Art+Object gallery, as it transitions from one successful auction to the next.

International Art Centre

Situated in the heart of Parnell, Auckland, International Art Centre is New Zealand’s only auction house to focus solely on art. With specialty sales of Historical, Modern and Contemporary art, the gallery and auction house maintain strong relationships with both national and international artists. Join Director Richard Thomson to hear how International Art Centre’s focus on the people, from the artist, to the buyers and sellers, is key to their business, and how they have developed since their start in 1971. 

Purpose

The Artist Resale Royalty Scheme enables 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). Select the learn more link for more information about the Scheme.

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Legislation

The Resale Right for Visual Artists Act 2023, and the Resale Right for Visual Artists Regulations 2024 came into force on 1 December 2024. Select the learn more link for more information about the governing legislation, regulations and RRA’s policy statements.

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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)

Apply this test in four steps using this flowchart (click on each for a checklist).

  • 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

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 has been operational since 1st December 2024.   Select the learn more link for more information about RRA.

Learn more

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

The Minister for arts, culture and heritage has appointed Copyright Licensing New Zealand to administer the Artist Resale Royalty scheme. The scheme will be operated by a subsidiary named Resale Royalties Aotearoa Toi Huarau.

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.

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

When is a royalty payable?

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

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.

Select the learn more link for more information about how the scheme operates.

Learn more

FAQs

  • Has there been any consideration regarding the extension of copyright duration that will be enacted sometime in the next four years?

    Currently the artist resale royalty will apply for 50 years after the death of the artist which aligns with New Zealand’s current Copyright Act. However our understanding is that the Copyright term will be extended prior 1 May 2028, and we would expect that the ARR term will then also be extended to align with the Copyright Act. 

  • How does the scheme apply to GLAM organisations?

    The scheme 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 is the resale value calculated?

    The resale royalty payable is calculated at 5% of the “resale value” of the qualifying resale (section 16).

    Section 10 says that “resale value” means: “the value of the consideration given for the visual artwork under the contract for resale” which may include:

    • the amount paid in New Zealand dollars;  
    • the value of goods and/or services paid in kind;  
    • (if paid in another currency), the amount converted to NZD at the date of payment.   

    ‘Resale value’ does not include:

    • goods and services tax (GST; or
    • duties, levies, or taxes (etc) under the Customs and Excise Act 2018; or
    • “any costs associated with the resale, for example, a commission or a buyer’s premium” 

    Plain English Guidelines

    In plain English, this means that the “Resale Value” is the amount the buyer has agreed to pay the seller for the artwork itself.   All external and other associated costs (taxes, fees, or levies, etc) are separate to (not part of) the scheme or the Resale Value calculation.  This ensures the value of the royalty relates directly to the value of the artwork itself, and is not subject to other external or variable factors.

    For example:

    An original visual artwork sells at auction.  The sale and purchase agreement records that the buyer will pay $2,000 to the seller as consideration for the artwork (plus any applicable fees and taxes).  

    Under the AMP’s terms of service, the parties agree that the seller will pay the AMP a 20% commission ($400) for acting as its agent, and the buyer will pay the AMP a 15% premium (additional amount) ($300) for facilitating the resale.

    Resale Value

    Assuming the Act applies, in the example given above:

    • The “Resale Value” is $2,000 because, in terms of s 10(1) of the Act, that figure represents the value “given for the visual artwork under the contract for resale”. 
    • In plain English, this is the amount the buyer has agreed to pay the seller “for the artwork”. 
    • The artist is entitled to a 5% share in that Resale Value = $100 in this example.  (The AMP and the seller are jointly and severally liable to pay the $100 royalty to RRA).

    Other Associated Costs:

    Other fees, costs, taxes etc may or may not apply to the sale.  These are, however, separate matters to the value given for the artwork. 

    It is important to distinguish these other transactions from the “Resale Value”.  Note that commissions, premiums, taxes, and other costs are usually separately stated in your legal documents and invoices.  For example, they may appear as separate & distinct line items to the hammer price, within the same invoice (or in separate invoices).  They may appear in the AMP’s terms of service rather than in the contract for resale. 

    A helpful way to distinguish “Resale Value” from “costs associated” is first to ask (1) who is paying whom, and second to ask (2) in respect of what?  For example, “Resale value” is (in plain English) the amount the buyer has agreed to pay the seller, for the artwork.   By contrast:

    • a “buyer’s premium” is, first, an amount the buyer has agreed to pay to the AMP (i.e. not buyer to seller).  It is, second, not given “for the artwork”, but rather for the AMP successfully facilitating the resale. 
    • “commission” is, first, an amount the seller has agreed to pay the AMP (i.e. not buyer to seller).  It is, second, not given as consideration “for the artwork”.  Rather it is given for professional services related to the resale (e.g. marketing, valuation, handling & housing of goods, administration, auctioneering, and other professional services etc). 

  • How much is the resale royalty payment?

    The amount is the same for both eligible artists and successors, a 5% royalty will be collected for eligible artists 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 retain 20% for the purpose of funding RRA operations and distribute the remainder of the royalty to the visual artist or successor.

  • 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.

  • 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).

  • When is a resale royalty payable?

    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 had not “expired” at the time of resale)

     Use the flowchart in the Criteria section of the Homepage to apply this test in 4 Steps.

  • 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 eligibilit

  • 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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