Photo by Fons Heijnsbroek on Unsplash
The first resale royalty was successfully reported on 5 December, following the much-anticipated launch of the Resale Royalty Scheme on 1 December 2024.
Administered by Resale Royalties Aotearoa Toi Huarau, a non-profit subsidiary of Copyright Licensing New Zealand, this scheme ensures artists, and their successors receive royalty payments when artworks are resold.
As of 1 December 2024, a 5% royalty will now be collected for eligible artists each time their artwork is resold over the threshold of NZD$2,000.
Sam Irvine, Chief Executive of Resale Royalties Aotearoa and Copyright Licensing New Zealand, says the scheme recognises the contribution visual artists make to New Zealand’s cultural identity.
“This scheme supports the longevity of New Zealand artists’ careers and enables them to continue producing artwork for the benefit of society,” Mr Irvine says.
“The long-term sustainability of our arts and cultural sector is essential not only for preserving our heritage but also for fostering innovation and creativity that drive New Zealand’s future.”
Minister of Trade Todd McClay highlighted the importance of this initiative in fulfilling New Zealand’s Free Trade Agreements with the United Kingdom and the European Union.
“The Resale Royalties Scheme brings New Zealand in line with global standards to ensure artists are fairly compensated when their work is resold. It means New Zealand art sold here and overseas will return a payment to our artists.
“It strengthens our commitment to fair trade practices made in our agreements with the UK and EU. And importantly, it enhances the reputation of New Zealand’s creative sector and promotes the value of our cultural exports.”
The Artist Resale Royalty scheme also aligns Aotearoa with global best practices. New Zealand now joins over 30 OECD countries, including Australia – where a similar scheme has been operating since 2010 and has generated over $14 million in royalties and benefitted more than 2,700 artists (Resale Royalty, 2023).
To be a qualifying resale under the scheme, the resale value must be $2000 NZD (excl. GST) or greater. The contract for the resale must be entered into on or after the commencement date of the Act (1 December 2024). The sale must be a “Professional Resale” or a “Voluntary Qualifying Resale”.
Mr Irvine says Copyright licensing New Zealand, as the owner of Resale Royalty Aotearoa, is proud to be strengthening its association with the New Zealand creative sector.
“We have over 30 years of experience as a not-for-profit provider that collects, distributes and supports the Aotearoa New Zealand literary community. We are excited to begin supporting the visual art community in this space too.”
Resale Royalties Aotearoa is calling on emerging and established visual artists and their successors, Art Market Professionals, art buyers and collectors, and GLAM (galleries, libraries, archives and museums) professionals to join the registry at resaleroyalties.co.nz/register/. Here they can find more information on the scheme and qualifying criteria.