New Zealand is stepping up its game in the global production race, unveiling major updates to its International Screen Production Rebate in a bid to keep the country competitive against powerhouse markets like Australia, the UK, and Canada.

The program — which has underpinned blockbusters like Avatar: The Way of Water, The Hobbit, Mulan, and Deadpool & Wolverine — currently offers a 20% rebate on qualifying local spend, with a potential uplift to 25% for projects delivering wider economic and cultural benefits.

Starting January 1, 2026, those incentives will expand significantly. The minimum qualifying spend for feature films will drop from approximately $9.1 million USD (NZ$15 million) to $2.43 million USD (NZ$4 million), opening the door for more independent and mid-budget productions. Meanwhile, the threshold to qualify for the additional 5% uplift will lower from $18.2 million USD (NZ$30 million) to $12.1 million USD (NZ$20 million) — a move designed to keep mid-tier streamers and series in play.

For the first time, the uplift will also cover post-production, digital, and VFX-only projects, a strategic win for the country’s booming visual effects sector led by Wētā FX. In a further modernization, the government is removing caps on above-the-line costs — including fees for directors, producers, writers, and principal cast — aligning the program with international best practices.

“Global competition for large-scale screen productions has intensified,” said Economic Growth Minister Nicola Willis. “These updates modernize the rebate to attract a broader range of productions, create more consistent work for local crews and businesses, and encourage greater foreign investment in our creative industries.”

The reforms are backed by $350 million USD (NZ$577 million) in new funding from Budget 2025, bringing total support for the International Screen Production Rebate to $662 million USD (NZ$1.09 billion) over the next four years.

According to government data, the screen sector supports around 24,000 jobs and contributes $2.12 billion USD (NZ$3.5 billion) annually to the national economy. Officials also claim the rebate delivers a strong return, generating $1.46 USD (NZ$2.40) for every $1 USD invested.

With rival territories offering attractive rates — Australia up to 40%, Ireland 32%, and both the UK and Canada near 29% — New Zealand’s recalibrated incentives aim to ensure it remains a top-tier destination for international film and television productions.

“These changes ensure New Zealand remains a serious contender in an increasingly competitive global screen industry,” Willis added.