In line with Aotearoa New Zealand’s Free Trade Agreement (FTA) with the UK and the EU, the Government is establishing an Artist Resale Royalty Scheme to ensure the creators of visual arts are recognised and rewarded when their work is resold on the secondary art market.
“This is about fairness. It underlines our Government’s commitment to honouring the tremendous artistic skill and creativity of so many of our visual artists,” Minister for Arts, Culture and Heritage Carmel Sepuloni said.
“I believe we’ve struck the right balance between allowing a valuable and important resale market to flourish, and respecting the contribution of the original creators of art. Beyond the monetary acknowledgement, this is confirmation for artists that they have rights, and their cultural and societal contribution is valued,” Carmel Sepuloni said.
“This is not only an important part of our free trade agreement with the UK and EU, but it places Aotearoa New Zealand alongside more than 80 other countries who now have resale royalty schemes, aligning with common international practice.
The Artist Resale Royalty Scheme will support our visual artists by ensuring that a five percent royalty is collected when their work is sold on the resale market. The Scheme will be a flat rate of five percent before any additions, deductions, or other charges, ensuring it does not place too large a burden on buyers, sellers, and art market professionals.
“People that buy and sell visual artworks on the secondary market make money on artworks when an artist’s reputation grows and they achieve success. However, currently none of this profit, which is a result of the hard work put in and success achieved by the artist, actually goes to the artist. Under the proposed Artist Resale Royalty Scheme this will change.
“Standalone legislation will be written and pass through the House before the Scheme is introduced by late 2024. The Scheme will be available to citizens and residents of New Zealand or residents of a reciprocating country.