10 September 2024
Cooper O’Neil
By email: [FYI request #28069 email]
Dear Cooper,
15 AUGUST 2024: OFFICIAL INFORMATION ACT REQUEST
In your email dated 15 August 2024 you requested information under the Official
Information Act 1982 (OIA) regarding details related to any grants or financial support
provided by the New Zealand Film Commission for the production of the film "
Ted 2."
Responses to your specific questions are set out below.
1. Details of the Grants Provided:
a) The total amount of funding provided to the production of "Ted 2" by the
New Zealand Film Commission.
Ted 2 was approved the New Zealand Screen Production Grant (NZSPG) for International
Productions in November 2015. The NZSPG is not New Zealand Film Commission (NZFC)
funding. It is a rebate scheme administered by the NZFC on behalf of the Ministry of
Business, Innovation and Employment (MBIE).
The purpose of the NZSPG for International Productions is to incentivise the production of
foreign and domestic large budget films, television and other format productions in New
Zealand in order to provide economic and industry development benefits to New Zealand.
Productions must meet specific criteria to be eligible for the rebate. The criteria
Ted 2 was
assessed under is attached at
Appendix 1.
A list of approved rebates for International Productions is published every quarter on the
NZFC website here:
Approved Screen Production Rebates - International Productions
(nzfilm.co.nz)
This page on the NZFC website provides an overview of the Rebate:
New Zealand Screen
Production Rebate for International Productions (nzfilm.co.nz)
Please note that the NZSPG was renamed the New Zealand Screen Production Rebate in
2023.
b) Copies of the grant applications, approvals, and any other relevant
documents that outline the purpose and intended use of the funds.
Documents in relation to this part of your request are attached at
Appendix 1. Information
has been redacted where the documents contain information outside of the scope of the
request or one of the withholding grounds under the OIA applies, in which case the specific
grounds are noted by the redaction.
The Application, Independent Consultant’s Report, Audit Opinion and Audited Expenditure
Statement and the IRD Letter have been withheld in ful under the fol owing grounds of the
OIA:
• Section 9(2)(b)(ii): to protect information where the making available of the
information would likely unreasonably prejudice the commercial position of the
person who supplied or who is the subject of the information.
• Section 9(2)(ba)(i): to protect information which is subject to an obligation of
confidence, where the making available of the information would be likely to
prejudice the supply of similar information, or information from the same source
and it is in the public interest that such information should continue to be supplied.
2. Invoices and Payments:
a) Copies of all invoices submitted in relation to the funds provided for "Ted 2."
b) Records of payments made by the New Zealand Film Commission to the
production.
The NZFC does not hold this information. Invoices for the Rebate are paid by MBIE.
3. Work Done by New Zealand Suppliers:
a) A list of New Zealand-based suppliers, contractors, and companies that were
engaged as part of the production of "Ted 2" and paid using the grant funds.
b) Details of the work carried out by these New Zealand suppliers, including
contracts, statements of work, and any related documentation.
The “grant funds” are not used for this purpose – the applicant must first incur expenses in
order to claim the Rebate.
Wētā FX provided work on the production.
4. Reporting and Accountability:
a) Copies of any reports or evaluations submitted by the production company
to the New Zealand Film Commission regarding the use of the grants.
Please note that the NZSPG is a rebate on incurred expenditure. Applicants are required to
supply supporting documentation for the purposes of assessing this expenditure. An
overview of these requirements is in the Criteria and the Final application forms available
on the NZFC website.
b) Any correspondence between the New Zealand Film Commission and the
production company related to the grant, including emails, letters, and
meeting notes.
Documents in relation to this part of your request are attached at
Appendix 1. Information
has been redacted where the documents contain information outside of the scope of the
request or one of the withholding grounds under the OIA applies, in which case the specific
grounds are noted by the redaction.
5. Other Relevant Documentation:
a) Any other documentation that relates to the funding and financial support
provided by the New Zealand Film Commission for "Ted 2."
The NZFC did not provide funding or financial support for
Ted 2. The NZSPG for International
Productions is a rebate scheme administered by the NZFC on behalf of MBIE.
We will be publishing this letter (with your personal information removed) and
Appendix 1
on the NZFC website.
Please be aware that you have the right, by way of complaint to an Ombudsman under
section 28(3) of the OIA to seek an investigation and review of our response.
Yours sincerely
Tayla Hancock
Senior Advisor, Policy and Performance
New Zealand Film Commission
Appendix 1
1982
Act
s9(2)(a)
Information
Official
the
under
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NZSPG - International Application Checklist (to be
completed for each interim and final application
received)
Applicant
MRC II NZ Limited
Name of production
Ted 2
Date application received:
14 September 2015
1982
3-month expiry date:
14 December 2015
Act
Date acknowledgement Letter Sent
14 September 2015
External consultant
Confirm papers sent to IRD and Yes
consultant
Exit Survey included and sent to Film NZ
Recorded on log and calendar
yes Information
Confirm statutory declaration signed
Yes
Confirm format
Feature Film
Official
Confirm threshold
PDV – QNZPE exceeds NZ$1m
the
Name of Auditor
Grant Thornton
Confirm receipt signed Auditor’s letter
Yes
Confirm receipt of DVD of production (or
examples of footage if int
under erim or PDV
application)
Confirm receipt of distribution
letter/agreement
Date of panel meeting
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Date grant approval letter sent
Confirm approval letter cc’d to MED and
IRD
6th meeting of the NZSPG Panel of the New Zealand Film Commission.
New Zealand Film Commission, Level 3, 119 Ghuznee Street, Wellington
On Thursday 26th November 2015 at 11am.
1982
AGENDA
1.0 Apologies
Act
2.0 Conflicts of Interest
3.0 Minutes
3.1 Minutes of 5th NZSPG-NZ Panel meeting held on Monday 19th
Attached
October 2015.
4.0 Out of scope
4.1
All attached
4.2
4.3
Information
4.4
4.5
5.0
5.1
5.2
All attached
Official
5.3
5.4
5.5
the
5.6
6.0
Final Application Ted 2 (NZSPG – PDV, International)
6.1 Screen Incentives Report
6.2 Independent Consultant’s Report
All attached
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6.3 Email from Applicant
6.4 Audit Opinion and Audited Expenditure Statement
6.5 Weta Letter
6.6 IRD Letter
7.0 Out of scope
7.1
All attached
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7.2
7.3
7.4
7.5
- 1 -
8.0
General Business
8.1 Upcoming applications
All oral update
8.2 Update on the Consultants’ Forum
8.3 Update on Out of
scope
1982
Act
Information
Official
the
under
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Screen Incentives Report on Final Certification
International Grant
Screen Production:
Ted 2
Synopsis: Newlywed couple Ted and Tami-Lynn want to have a baby but in order to
qualify to be a parent, Ted wil have to prove he’s a person in a court of law.
We have identified the following issues:
1982
Background
Ted 2 is a feature film, with PDV activity carried out in New Zealand between 1 Act
March and 31 July 2015. The applicant wil be assessed under the 1 April 2014 NZSPG
International criteria.
Adjustments
Possible adjustments of s9(2)(b) have been identified.
(ii)
s9(2)(b)(ii)
Information
Official
the
under
The NZFC recommends that as the services were performed outside New Zealand
they should be excluded.
Does the Panel AGREE with the NZFC’s recommended adjustments?
Eligibility Cr
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iteria
Administrative Requirements:
Application must be sent in within 3 months of completion of the screen
production
Page 1 of 4
Comments: The application was acknowledged on 14 September 2015 which was
within 3 months from the completion date of 15 June 2015, as per the application
form.
Completed application must be sent in with al required attachments: audited
expenditure statements, auditor’s Letter, DVD, Statutory declaration
Comments:
1982
As the film had already screened in New Zealand at the time of application no DVD
was requested.
Act
Other documentation sent in where applicable.
Comments:
The production, MRC II NZ Limited has entered into an agreement with
Weta Digital Limited, dated 5 March 2015 for the provision of visual effects services
for
Ted 2.
Time of completion
Screen Production Completed after 1 July 2003
Information
Distribution agreement confirmed
DVD of completed production seen
Comments: The Production had already screened in New Zealand cinemas when the
application was received.
Official
QNZPE expenditure thresholds
(A) Over NZ$15 million the
(B) Interim NZ$50 million or more
(C) PDV NZ$1 million or more
Comments: Claimed QNZPE of s9(2)(b)(ii)
under
Format
Feature film Telemovie Mini-series TV Drama series
Direct-to-video
Comments: Theatrical release, 115 minutes.
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Relevant entity
Comments: The applicant is the New Zealand SPV set up to manage the production
in New Zealand.
Residency status
Page 2 of 4
The applicant is a New Zealand resident company
The applicant is a foreign corporation operating with a fixed establishment in NZ
for the purposes of lodging an income tax return.
Comments: MRC II NZ Limited, Incorporated on 04 Feb 2015 with company number
5553105.
Other incentives
Comments: Not applicable.
1982
Auditor
NZFC Approved Auditor
Act
Comments: Grant Thornton were the auditors.
Audited expenditure statements
Comments:
The expenditure statement is signed off by the auditors for QNZPE of
s9(2)(b)(ii) .
Non-Arm’s Length Expenditure
Comments: Not applicable.
Information
Attachments: Attached to this report:
• Independent consultant’s report
• Auditor’s opinion and audited expenditure statements
• IRD letter
Official
Conclusion:
Subject to the Panel’s assessment o
the f the issue identified in this report, the NZFC
recommends that the applicant is eligible to qualify for the International PDV NZSPG.
Total approved QNZPE:
Pending the Panel’s decision, the assessed QNZPE is $2,309,890.67.
under
(Claimed QNZPE of s9(2)(b)(ii)
less adjustments of s9(2)(b)(ii) ).
Recommendation to Panel:
That a NZSPG PDV grant of
NZ$461,978.13 be approved in respect of this screen
production, being 20% of the assessed QNZPE - subject to the Panel’s decision
outlined in the conclusion.
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IRD VERIFICATION
The IRD verification letter is attached.
Date: 27 October 2015
Page 3 of 4
Prepared by: Chris Tyson
Reviewed by: Catherine Bates
1982
Act
Information
Official
the
under
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Page 4 of 4
From:
Brett Thornquest
To:
"ffiske Robert"
Cc:
Chris Tyson
Subject:
RE: Ted 2 PDV application
Date:
Wednesday, 28 October 2015 6:31:11 a.m.
Attachments:
image001.png
Importance:
High
Hi Rob every message u left I returned either by phone or email
s9(2)(b)(ii)
1982
Act
regards
Information
Brett Thornquest
From: ffiske Robert [s9(2)(a)
Sent: Tuesday, 27 October 2015 10:10 AMOfficial
To: Brett Thornquest s9(2)(a)
Cc: Chris Tyson <[email address]>
Subject: Re: Ted 2 PDV application
the
Hi Brett
I would still like to talk to you re the administration charges and have made several attempts to
call you and left messages.
I have put in my report to the Film Commission.
under
I am recommending the Grant be paid on the full application less the s9(2)(b)(ii)
I have forwarded your emails so far to Chris so the panel will see your argument and you can
also still send us both any further information you wish too to support your argument.
Released
Thanks
Rob ffiske
s9(2)(a)
From: Brett Thornquest s9(2)(a)
To: 'ffiske Robert' s9(2)(a)
Sent: Tuesday, 27 October 2015 11:48 AM
Subject: RE: Ted 2 PDV application
Hi rob just checking in on this all good now to proceed to approval ?
Client asking re status
Thanks as always
Regards
brett
1982
Act
From: ffiske Robert s9(2)(a)
Sent: Thursday, 22 October 2015 1:22 PM
To: Brett Thornquest s9(2)(a)
Subject: Re: Ted 2 PDV application
Can you tell me what that project is please?
Rob ffiske
s9(2)(a)
Information
From: Brett Thornquest s9(2)(a)
To: 'ffiske Robert' s9(2)(a)
Sent: Thursday, 22 October 2015 3:05 PM
Subject: RE: Ted 2 PDV application
Official
Hi rob – I meant to say the reference to the Interim Assessment was not for Ted 2 but
another current project, that s9(2)(b) t is vending services for etc
regards
(ii)
the
Brett Thornquest
under
From: Brett Thornquest s9(2)(a)
Sent: Wednesday, 21 October 2015 3:42 PM
To: 'ffiske Robert' s9(2)(a)
>
Cc: 'Chris Tyson' <[email address]>
Subject: RE: Ted 2 PDV application
Hi rob
Released
s9(2)(b)(ii)
s9(2)(b)(ii)
regards
Brett Thornquest
Contrarian Group_Logo and Name
1982
Act
New Zealand Office
www.contrarianinc.com Tel + 64
s9(2)(a)
AUSTRALIA – NEW ZEALAND - USA
From: ffiske Robert [s9(2)(a)
Sent: Wednesday, 21 October 2015 1:32 PM
Information
To: Brett Thornquest s9(2)(a)
Cc: 'Chris Tyson' <[email address]>
Subject: Re: Ted 2 PDV application
Hi Brett
Thanks for the invoices. The invoices provided show no evidence that any of this work
Official
was done in New Zealand. Can you please provide paid invoices from a New Zealand
supplier or evidence of work done in New Zealand.
the
Thanks
Rob ffiske
s9(2)(a)
under
From: Brett Thornquest s9(2)(a)
To: 'ffiske Robert' s9(2)(a)
Cc: 'Chris Tyson' <[email address]>
Sent: Tuesday, 20 October 2015 6:27 AM
Subject: RE: Ted 2 PDV application
Hi rob
Released
Invoices attached
Brett Thornquest
Contrarian Group_Logo and Name
Australian Office U.S.A
Office (Postal)
Level 6 / 69 Reservoir Street 9461 Charleville
Blvd, # 431
1982
Surry Hills NSW 2010 Beverly
Hills CA 90212
Sydney, Australia Tel
Act
s9(2)(a)
New Zealand Office
www.contrarianinc.com Tel + 64
(s9(2)(a)
AUSTRALIA – NEW ZEALAND - USA
NOTICE:
This email and any attachments are confidential; if you are not the intended recipient, notify the sender immediately
and delete this email. Should this email constitute advice, then no responsibility can be accepted if the information
Information
provided by the recipient is inaccurate. If you believe we have overlooked relevant information, bring this to our
attention before acting on our advice. To the extent permitted by law, we will not be liable for loss or damage arising
from reliance on the email. It is the recipient's responsibility to ensure all attachments are scanned for viruses. Liability
limited by a scheme approved under Professional Standards Legislation. Any advice provided herein is provided by
Contrarian Tax Unit Pty Ltd (a related company to
Contrarian Group Australia Pty Ltd /Holdings LLC) and its
officers and employees solely pertains to activities within Australia or New Zealand (as applicable). The laws of
Australia or New Zealand (as applicable) shall govern the provision of any such advice or information provided.
Official
the
From: ffiske Robert s9(2)(a)
Sent: Monday, 19 October 2015 1:01 PM
To: s9(2)(a)
Cc: Chris Tyson <[email address]>
Subject: Ted 2 PDV application
under
Hi Brett
Can I please have copies of the s9(2)(b)(ii)
invoices please.
Thanks
Rob ffiske
s9(2)(a)
Released
1982
Act
Information
Official
the
under
Released
6th Meeting of the NZSPG-NZ & International Panel
Held at the New Zealand Film Commission, Level 3, 119 Ghuznee Street, Wellington
On Thursday 26 November 2015
1982
The meeting opened at 11.10 am.
Present:
Dave Gibson (Chair)
Act
Catherine Bates (NZFC)
John McCay – (Board)
Carrie Cooke (MCH)
Robyn Henderson – (MBIE)
Vincent Burke (Industry Member)
Sharon Menzies (Industry Member) (Phone)
In Attendance:
Chris Tyson (NZFC) (minutes)
June Rout (MBIE)
Information
Rob ffiske (Independent Consultant) (Phone)
Deborah McCarthy (IRD)
Kristen Rowe (NZFC)
1.0 Apologies
Official
None
2.0 Conflicts of interest
None
the
3.0 Minutes
3.1
The minutes of the 5th meeting of the NZSPG-NZ & International Panel held on 19th
October 2015 were tabled.
under
s9(2)(b)(ii)
Released
Page 1 of 6
s9(2)(b)(ii)
1982
Act
Information
Official
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Released
Page 2 of 6
s9(2)(b)(ii)
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Act
Information
Official
the
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Page 3 of 6
s9(2)(b)(ii)
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Act
6.0
Ted 2 – NZSPG – International PDV Final Certificate (MBIE Vote)
6.1
The Panel considered the Screen Incentives Report, the Independent Consultant’s Report,
Information
an email from the Applicant, the Audited Opinion and Audited Expenditure Statement, the
Weta letter and the IRD letter.
6.2
The applicant claimed a company overhead fee of s9(2)(b)(ii)
Official
the
6.5
The NZFC recommended that as the services were performed outside New Zealand they
under
should be excluded.
6.6
The Panel AGREED with the NZFC but asked the NZFC to send the Final Certificate letter to
MBIE for review before sending to the applicant.
6.7
IT WAS AGREED
That the claimed s9(2)(b)(ii)
be excluded from the QNZPE.
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That
Ted 2 fulfilled the requirements of the criteria and that a Final Certificate be granted.
Qualifying New Zealand Production Expenditure (QNZPE)
Total approved QNZPE is $2,309,890
Page 4 of 6
Total Grant
$461,978 (being 20% of the approved QNZPE)
s9(2)(b)(ii)
1982
Act
Information
Official
the
6.0 General Business
under
The
NZFC advised the Panel of up-coming applications for the 16th December Panel meeting
and that the next proposed meeting is currently scheduled for the 3rd February 2016.
The Head of Incentives gave the Panel an update on the Consultants Forum held on the 10th
November 2015.
s9(2)(b)(ii)
Released
The meeting closed at 12.25 pm.
Read and confirmed
Page 5 of 6
Signed: ___________________ Date: _______________
Dave Gibson
Chair
1982
Act
Information
Official
the
under
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Page 6 of 6
1982
Act
s9(2)(a)
Information
Official
s9(2)(b)
s9(2)(b)(ii) (ii)
the
s9(2)(b)(ii)
under
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1982
Act
Information
Official
the
under
Released
New Zealand Screen Production Grant
Criteria
for
International Productions
1 April 2014
under the Official Information Act 1982
This document sets out the eligibility criteria for the New Zealand Screen Production Grant for International
Productions and outlines the application process.
These criteria are subject to change from time to time. Before submitting an application applicants should
check with the New Zealand Film Commission to make sure they are using the correct version of the criteria
and the correct application form.
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CONTENTS
SECTION 1 – INTRODUCTION
4
1
Introduction
4
2
Key Definitions
4
3
Purpose
4
4
Amount of International Grant
5
5
Effective Date and Transitional Provisions
5
6
Eligibility for International Grant
5 1982
VISUAL OVERVIEW OF THE INTERNATIONAL GRANT
6
SECTION 2A – SPECIFIC ELIGIBILITY CRITERIA
7
Act
7
Feature Films
7
8
Television and Other Non-feature Films
7
9
PDV Production
8
10
Bundling
9
SECTION 2B – GENERAL ELIGIBILITY CRITERIA
10
11
Special Purpose Vehicle
10
12
Residency Status
11
13
Responsible Entity
12
14
Other Grants and New Zealand Incentives
12
Information
SECTION 3 – QUALIFYING NEW ZEALAND PRODUCTION EXPENDITURE (QNZPE)
13
15
Expenditure Statement
13
16
QNZPE
13
SECTION 4 – TREATMENT OF EXPENDITURE
16
Official
17
Income Tax
16
18
GST
16
19
Currency Exchange
16
the
20
Non-Arm’s Length Expenditure
16
21
Non-Accrual Basis of Expenditure
16
22
Expenditure by Prior Entities
16
23
Depreciating Assets
16
24
Transfer Pricing
17
under
SECTION 5 – APPLICATION PROCESS
18
25
Initial Assessment Applications
18
26
Initial Assessment Applications for 5% Uplift
18
27
Exchange Rate Fluctuation and Pre-qualification
18
28
PDV Grant SPV Exception 2
18
29
Information Before and During Production
19
30
Final Applications
19
31
Credit and Promotional Materials
20
32
Confidentiality
20
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33
Information for Research Purposes
20
34
Exit Survey
20
35
Further Information
20
36
Application Forms
21
SECTION 6 – ASSESSMENT PROCESS
22
NZSPG Criteria - International FINAL
2
37
NZSPG Panel
22
38
Assessment of Eligibility for the 5% Uplift
22
39
Independent Consultants
22
40
IRD Verification and Payment of International Grant
22
ANNEXURE 1 – FURTHER DEFINITIONS AND INTERPRETATION
23
ANNEXURE 2 – SIGNIFICANT ECONOMIC BENEFITS GUIDELINES
25 1982
ANNEXURE 3 – PDV ACTIVITY
40
Act
Information
Official
the
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NZSPG Criteria - International FINAL
3
link to page 32
SECTION 1 – INTRODUCTION
1
Introduction
Effective from 1 April 2014, the New Zealand Government introduced the New Zealand Screen Production
Grant scheme. This scheme enhances and combines the Large Budget Screen Production Grant scheme and
the Screen Production Incentive Fund. There are two sets of criteria – the NZSPG Criteria for International
Productions and the NZSPG Criteria for New Zealand Productions.
These criteria are the NZSPG Criteria for International Productions.
International Productions are generally
those productions that do not have Significant New Zealand Content and/or that are of a larger scale than
1982
productions that apply under the NZSPG Criteria for New Zealand Productions.
A visual overview of the eligibility criteria for the International Grant is provided at the end of this Section.
Productions that have Significant New Zealand Content should refer to the NZSPG Criteria for New Zealand
Act
Productions to see whether they are eligible for a New Zealand Grant under those criteria.
2
Key Definitions
In these criteria the following terms or symbols have the meaning set out below. Further definitions of other
terms used in these criteria are in Annexure 1. If a word or phrase is capitalised it is defined below or in
Annexure 1.
$ means New Zealand dollars.
5% Uplift means an increase to the International Grant of 5% of QNZPE. This is only available to eligible
productions that pass the Significant Economic Benefits Test.
Information
IRD means the New Zealand Department of Inland Revenue.
International Grant means the grant available under the NZSPG to productions that meet the eligibility criteria
under the NZSPG Criteria for International Productions. It includes the PDV Grant.
New Zealand Grant means the grant available to New Zealand Productions under the NZSPG Criteria for New
Zealand Productions.
New Zealand Productions means productions with Significant New Zealand Content.
Official
NZFC means the New Zealand Film Commission.
NZSPG means the New Zealand Screen Production Grant scheme introduced by the New Zealand Government
the
from 1 April 2014.
PDV Activity means the post, digital and visual effects production activities listed in Annexure 3 (as may be
updated from time to time) to the extent they occur in New Zealand.
PDV Grant means the grant available under the NZSPG to eligible PDV Productions.
PDV Productions means productions that meet the criteria in claus
e 9 of Section 2A.
under
QNZPE means Qualifying New Zealand Production Expenditure as defined in Section 3.
Significant Economic Benefits Test means the test used to determine whether a production brings significant
economic benefits to New Zealand. This test is included in the Significant Economic Benefits Guidelines in
Annexure 2.
Significant New Zealand Content means significant New Zealand content for the purposes of the NZSPG
Criteria for New Zealand Productions as determined in accordance with those criteria.
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3
Purpose
The purpose of the NZSPG for International Productions is to provide a financial incentive for the production of
foreign and domestic large budget films, television and other format productions in New Zealand.
The purpose of the PDV Grant is to specifically foster capacity and new business development for large budget
PDV Productions in New Zealand.
NZSPG Criteria - International FINAL
4
In establishing the NZSPG for International Productions, the New Zealand Government recognises that large
budget screen productions and PDV Activity contribute to New Zealand’s economic development by providing
valuable economic, employment and skill development opportunities for the New Zealand screen production
industry. The International Grant will ensure that New Zealand remains competitive in attracting large budget
screen productions and PDV Activity from offshore.
It is anticipated that only experienced producers will apply for an International Grant. As a consequence of
this, it is expected that applications will be prepared to a high standard and in accordance with both the letter
and intent of these criteria. Applications that do not meet these standards may be rejected by the NZFC.
4
Amount of International Grant
1982
The International Grant is 20% of QNZPE.
Productions that qualify for the 5% Uplift will receive a total International Grant of 25% of QNZPE. Act
5
Effective Date and Transitional Provisions
These criteria are effective from 1 April 2014.
International Productions that have started Principal Photography
before 1 April 2014 will be assessed under
the relevant LBSPG criteria. However, the LBSP Grant on any QNZPE incurred on a production after 1 April 2014
will be paid at the new rate of 20%.
International Productions that start Principal Photography
after 1 April 2014 will be assessed under these
criteria. However, the International Grant on any QNZPE incurred on a production before 1 April 2014 will be
paid at the previous rate of 15%.
Information
6
Eligibility for International Grant
To be eligible for an International Grant, productions and applicants must satisfy:
(a)
the relevant specific eligibility criteria in Section 2A; and
(b)
the general eligibility criteria in Section 2B.
Official
To be eligible for the 5% Uplift, productions and applicants must also pass the Significant Economic Benefits
Test.
the
under
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NZSPG Criteria - International FINAL
5
link to page 31 link to page 31 link to page 31 link to page 32 link to page 32
Visual Overview of the International Grant
No
Is the production an eligible format?
No
Clauses
7.1 and 8.1
grant
Yes
1982
Does the production meet the relevant threshold?
No
Film $15m, TV and other $4m, PDV $1m.
(Claus
es 7.2, 8.2, 9.2)
Act
Yes
20% grant
Has the applicant (including any related entity of the applicant)
Information
incurred QNZPE of $100m or more in the previous 5 years?
(Annexure 2: Significant Economic Benefits Test, Section A)
Yes
No
Official
Does the production achieve a
Is N
the QNZPE on the relevant
minimum of 3 points in Section D
pro o
duction $150m or more (film) or
the
$80m or more (TV and other)?
of the Significant Economic
(Annexure 2: Significant Economic
Benefits Points Test including 2
Yes
No
points from D1 and/or D2?
Benefits Test, Section A)
No
Yes
under
Is the QNZPE on the production
5% Uplift –
$30m or more (film) or $25m or
more (TV and other)? (Annexure 2:
total grant
Significant Economic Benefits Test,
25%
Section A)
No
Yes
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Does the relevant production achieve a
minimum 20 points in the Significant
Economic Benefits Test with a
Yes
minimum 3 points from Section D
including 2 points from D1 and/or D2?
NZSPG Criteria - International FINAL
6
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SECTION 2A – SPECIFIC ELIGIBILITY CRITERIA
7
Feature Films
No
7.1
Format
(a)
A feature film is a production that is not excluded under claus
e 7.1(b) and is:
(i)
commonly screened as the main attraction in commercial cinemas;
(ii)
not less than 60 minutes, or in the case of a large format (IMAX) film not less than 45
minutes; and
1982
is shot and processed to commercial release standards primarily for exhibition to the public in
cinemas.
Act
(b)
A production that fits into any of the following categories (or to a substantial extent fits into the
following categories) is specifically excluded from eligibility:
(i)
an advertising programme or commercial;
(ii)
a discussion programme, current affairs, news, a panel programme, or a programme of a
like nature;
(iii)
pornography;
(iv)
a training programme;
(v)
an interactive digital game; or
Information
(vi)
a production of a public event, including a sports event.
7.2
Expenditure threshold
A feature film must have QNZPE of $15 million or more.
7.3
Simultaneous or Concurrent Shooting of Feature Films
Official
Applicants may seek approval to treat more than one feature film as one production for the purposes of
the International Grant in the following circumstances:
(a)
Where all aspects of the production (pre-shoot-post) are being treated by the producers as a
the
single production and there is no separation of resources between feature films;
(b)
Where all feature films are being budgeted as a single production and reported on that basis;
(c)
Where all feature films share the same or substantially similar setting and characters and an
overarching narrative (e.g. parts of a trilogy, prequels, sequels).
Where the above applies to more than one film, the NZFC will treat all feature films as one production
under
for administrative purposes only. Each feature film within the package will need to meet the relevant
eligibility threshold for a feature film or the bundling criteria. The average QNZPE per film will be used
to determine eligibility. This clause will not entitle any production costs to be QNZPE if they would not
otherwise have been QNZPE if each feature film had been treated as a separate production. However,
for the purposes of claus
e 16.2(b), the date of Completion of the production will be the date the last
feature film approved for such treatment is completed. Requests should be made in writing to the NZFC
stating how the films meet the criteria in this clause and these will be considered on a case-by-case
basis.
Released
8
Television and Other Non-feature Films
8.1
Format
(a)
A television or other non-feature film is a production that is not excluded under clause
8.1(b) and
is either:
NZSPG Criteria - International FINAL
7
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(i)
a single episode programme whether scripted or unscripted including but not limited to
drama, documentary, factual, reality, children’s and animation;
(ii)
a series or season of a series whether scripted or unscripted including but not limited to
drama, documentary, factual, reality, children’s and animation being a programme with a
common theme or themes consisting of at least two episodes that are intended for
release together in a national market or markets and with individual episodes that have
completed Principal Photography within 24 months from the start of Principal
Photography, and
is shot and processed to commercial technical distribution standards and intended to be released
on a distribution platform other than cinema. Distribution platforms include all forms of
1982
television, DVD/Blu-ray, internet, video-on-demand, mobile phone or any other public mass
distribution medium device.
Where the Principal Photography of episodes in a series or season of a series may exceed 24
Act
months due to the specific requirements of the production (e.g. documentaries covering a long
time period or complex animation projects), applicants may seek approval from the NZFC to
extend the 24-month period. Requests should be made in writing to the NZFC stating the
reasons why the production requires an extension and these will be considered on a case-by-
case basis.
(b)
A production that fits into any of the following categories (or to a substantial extent fits into the
following categories) is specifically excluded from eligibility:
(i)
an advertising programme or commercial;
(ii)
a discussion programme, current affairs, news, a panel programme, or a programme of a
Information
like nature;
(iii)
pornography;
(iv)
a training programme;
(v)
an interactive digital game;
(vi)
a production of a public event, including a sports event; or
Official
(vii) a production principally made for the New Zealand market.
8.2
Expenditure threshold
the
A television or other non-feature film production must have QNZPE of $4 million or more.
9
PDV Production
9.1
Format under
A PDV Production must be one of the formats in claus
es 7.1 or 8.1.
9.2
Expenditure threshold
A PDV Production must have QNZPE of $1 million or more. QNZPE in relation to PDV Productions only,
means QNZPE that is spent directly on or is necessarily related to PDV Activity. QNZPE necessarily
related to PDV Activity includes but is not limited to:
(a)
the fees and expenses of personnel working on PDV Activity;
Released
(b)
the hire of studio and office space for PDV Activity;
(c)
the purchase or hire of equipment used for PDV Activity; and
(d)
the depreciation of assets used for PDV Activity.
NZSPG Criteria - International FINAL
8
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10
Bundling
10.1 Format
Each production within a bundle must be one of the formats in claus
es 7.1 or 8.1.
10.2 Expenditure threshold
A bundle consists of two or more productions where:
(a)
each production has QNZPE of $3 million or more;
1982
(b)
all productions have completed Principal Photography (or PDV Activity for a PDV Production)
within 36 months following the date that the first of those productions commenced Principal
Photography or PDV Activity (as the case may be), and
Act
the total bundle has QNZPE of $30 million or more.
10.3 Applicant for a bundle
The applicant for each production within a bundle must be the same entity or must be related to each
other applicant in the bundle by having 50% or more of its shareholding in common.
Information
Official
the
under
Released
NZSPG Criteria - International FINAL
9
SECTION 2B – GENERAL ELIGIBILITY CRITERIA
11
Special Purpose Vehicle
11.1 Applicant to be SPV
An applicant must be a special purpose vehicle (
SPV) established solely to make the production in New
Zealand. The applicant must have its own GST and payroll registration numbers and its own bank
account. If the applicant is part of a group of companies, then the applicant’s GST and payroll returns
must not be grouped with any other company within that group for tax purposes. The requirement for
separate GST registration is conditional on Inland Revenue accepting that the relevant production is
1982
eligible to be registered as a separate registered person under section 56(2) of the
Goods and Services
Tax Act 1985.
Act
11.2 Exceptions
An applicant is not required to be a SPV where one of the following applies:
(a)
Series: the production is a series or a season of a series. In this case a new SPV is not required for
each series or season of the production and the applicant’s existing GST and payroll registration
numbers and bank account may be re-used for the new series or season,
provided that there is
no overlap in QNZPE to be claimed on each series or season. It is expected that all GST and
payroll returns from the start of the new series or season will predominantly include expenditure
relating to that series or season. Minor expenditure relating to other series or seasons may be
included in those returns but this expenditure must be clearly identified and excluded from
QNZPE.
Information
(b)
Repurposing (non-concurrent use): the applicant has incurred all QNZPE to be claimed on a
previous production and/or has applied for an International Grant (or a SPIF or LBSPG grant) in
respect of that previous production. In this case, the applicant’s existing GST and payroll
registration numbers and bank account may be re-used for the new production. It is expected
that all GST and payroll returns from the start of the new production will predominantly include
expenditure relating to that production. Minor expenditure relating to the previous production
may be included in those returns but this expenditure must be clearly identified and excluded
Official
from QNZPE.
(c)
Bundling: the production is part of a bundle. In this case, a new SPV is not required for each
the
production in the bundle and the applicant’s existing GST and payroll registration numbers and
bank account may be re-used for each production
provided that separate tax locations* and a
separate bank account must be used for each production.
(d)
PDV Grant Exception 1 (will usually apply when the Producer or Production Administrator is
applying for the PDV Grant): for PDV Grant applications, the NZFC has waived the requirement
under
for a SPV on the basis that the NZFC has determined that the application is likely to have all of
the following characteristics:
(i)
a small number of PDV suppliers who are not associated with the applicant;
(ii)
a small number of large-value transactions;
(iii)
no live action shoot elements (studio or location);
(iv)
no direct labour costs incurred by the applicant; and
(v)
the applicant has obtained a separate tax location* for the relevant screen production.
Released *An applicant must contact the IRD for information on the steps required to obtain a separate
tax location number for an individual production. This number is a separate identifier within the
applicant’s principal GST and payroll registration number and enables the applicant to submit
separate GST and payroll returns under that number without having to set up a separate entity.
NZSPG Criteria - International FINAL
10
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Notes on clause 11.2(d):
Tax location numbers may be re-used when the conditions in claus
es 11.2(a), (b) o
r (c)
apply to the PDV Grant application.
If this exception applies, the production does not need to have a separate bank account.
If the applicant engages additional PDV suppliers after the NZFC has waived the
requirement for a SPV under this clause, the NZFC waiver will continue to apply.
(e)
PDV Grant Exception 2 (will usually apply when the PDV supplier is applying for the PDV Grant):
for PDV Grant applications, the NZFC has waived the requirement for a SPV on the basis that the
NZFC has determined that the application is likely to have all of the following characteristics:
1982
(i)
a total QNZPE of less than $10 million for a single production;
(ii)
the applicant has been engaged to supply all services on the production in New Zealand
Act
(any services to be provided or sub-contracted by the applicant outside New Zealand must
be contracted separately);
(iii)
the applicant is not associated with the entity to whom the services are being provided in
any way; and
(iv)
there is an arm’s-length contractual arrangement between the applicant and the entity to
which the services are being provided that clearly specifies that the applicant has the right
to apply for and retain 100% of the PDV Grant for the production.
Where the exception in this claus
e 11.2(e) applies, the QNZPE for the production shall be
deemed to be equivalent to the arm’s-length amount actually paid to the applicant prior to the
Information
submission of the final PDV Grant application for the services provided on the production in New
Zealand (the
purchase price) divided by 80% (or, where the production qualifies for the 5%
Uplift, 75%). Where any amount is due but not paid for legitimate commercial reasons, then
these will be considered on a case-by-case basis. The PDV Grant will be paid on the QNZPE
calculated by this method, however, the NZFC reserves the right to review the expenditure
incurred by the applicant to ensure that the purchase price has been paid solely in relation to
QNZPE incurred by the applicant on the production. If the purchase price is not in NZD and is
Official
near the PDV expenditure threshold of $1 million the applicant should use the initial assessment
process to pre-qualify an exchange rate.
The application process for a final application under claus
e 11.2(e) is set out in clause
28 of these
the
criteria.
Applicants seeking a waiver of the requirement for a SPV under clauses
11.2(d) an
d (e) may apply to the NZFC
at any time, however, the NZFC strongly recommends that such application be made prior to the start of PDV
under
Activity on the production in New Zealand (so that applicants have sufficient comfort that they will qualify for
an International Grant). Applications for a waiver must include such information as may be reasonably
required by the NZFC to make a determination under the relevant exception.
12
Residency Status
12.1 Residency of applicant
An applicant must be either:
Released
(a)
a New Zealand resident company, which in this context, means a company that:
(i) is incorporated in New Zealand, or
(ii) carries on business in New Zealand and has either its central management or control in
New Zealand, or its voting power controlled by shareholders who are residents of New
Zealand; or
NZSPG Criteria - International FINAL
11
(b)
a New Zealand resident partnership (a partnership is a New Zealand resident if a majority of the
partners in the partnership are New Zealand Tax Residents); or
(c)
a foreign corporation operating with a fixed establishment in New Zealand for the purposes of
lodging an income tax return (both when it lodges the International Grant application and when
the International Grant is paid). Advice can be obtained from the IRD on whether a company is a
fixed establishment in New Zealand for the purposes of lodging an income tax return.
13
Responsible Entity
An applicant must be the entity responsible for all activities involved in making the production in New Zealand 1982
or, for the PDV Grant, all PDV Activity on the production in New Zealand.
Only one entity per production can be eligible for the International Grant.
14
Act
Other Grants and New Zealand Incentives
A production cannot receive an International Grant and a New Zealand Grant.
A production may not receive more than one International Grant unless the first International Grant was for
the pilot of a series in which case the subsequent series may also receive an International Grant (provided that
the pilot and the subsequent series each satisfy the eligibility criteria).
A production seeking an International Grant is not eligible for any other New Zealand government film finance
or tax incentives in relation to the production (including year 1 deductions under section DS 2 of the
Income
Tax Act 2007 or funding through government agencies such as the NZFC, NZ On Air, Te Māngai Pāho).
Productions will, however, be eligible for development funding provided by the New Zealand Government or
Information
its agencies.
Official
the
under
Released
NZSPG Criteria - International FINAL
12
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SECTION 3 – QUALIFYING NEW ZEALAND PRODUCTION EXPENDITURE
(QNZPE)
15
Expenditure Statement
All costs claimed as QNZPE must be presented in an audited expenditure statement attached to the final
application. Arrangements should be made to track expenditure that relates to QNZPE and non-QNZPE as
early as possible. Where necessary, invoices from any supplier should be broken down to show New Zealand
and non-New Zealand activity with computerised accounts formatted to show this split. This will also facilitate
the independent audit of the expenditure statements.
1982
16
QNZPE
16.1 General QNZPE definition
Act
QNZPE is expenditure spent by the applicant on the production, where that expenditure is incurred on,
or is attributable to:
(a)
goods and services provided in New Zealand; or
(b)
the use of land located in New Zealand; or
(c)
the use of a good that is located in New Zealand at the time that the good is used in the making
of the production; or
(d)
the specific items set out in claus
e 16.2,
excluding the expenditure set out in clause
16.3.
Information
16.2 Specific items
(a)
New Zealand Copyright Acquisition
The cost if deductible under the
Income Tax Act 2007, or the depreciation, if allowable under the
Income Tax Act 2007, of acquiring copyright or the licensing of copyright in a pre-existing work
for use in the production is QNZPE if the original owner of copyright in the pre-existing work is,
Official
or was, a New Zealand Tax Resident.
The cost, if deductible under the
Income Tax Act 2007, or the depreciation, if allowable under the
Income Tax Act 2007, of commissioning and purchasing copyright (or an interest in copyright) in
the
a work created for use in the production is QNZPE if the work is, or was, created in New Zealand.
(b)
Additional Audiovisual Content
Costs incurred in New Zealand on audiovisual content that is intended to be released with the
production in some form are QNZPE where they are incurred by the applicant before Completion
of the production. Examples of additional audiovisual content for release with the production
under
are:
(i)
director or cast commentary tracks;
(ii)
‘making of’ documentaries;
(iii)
material for extended versions;
(iv)
any transmedia content released on a second screen where that content is developed and
produced in conjunction with the production to be viewed contemporaneously with the
production and shares a unified narrative with the production.
Released
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13
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(c)
Travel to New Zealand
The cost of each incoming journey to New Zealand undertaken for the purposes of the
production is QNZPE. The cost of an incoming journey is equivalent to 100% of a one-way fare or
50% of a return fare on a commercial airline.
(d)
Production Insurance
The cost of production insurance, excluding errors and omissions insurance, is QNZPE if paid to a
New Zealand entity.
(e)
Completion Bonds
1982
Completion bond fees are QNZPE regardless of whether they are paid to an entity within New
Zealand or outside New Zealand, but provided they are paid on an arm’s-length basis to a third
party who is a recognised completion guarantor (as determined by the NZFC).
Act
(f)
Freight
The cost of international freight is QNZPE if paid to a New Zealand entity.
16.3 Excluded Expenditure
(a)
Costs relating to short-term visits for non-cast personnel
The fees (and other benefits) for the services of non-cast personnel who travel to New Zealand
and work on the production for thirteen days or less (in total). However, costs relating to travel
to New Zealand in accordance with claus
e 16.2(c) are QNZPE.
Information
(b)
Acquisition or licensing of copyright
The cost of acquiring or licensing copyright in a pre-existing work where the original owner of
copyright in such work is not, or was not, a New Zealand Tax Resident and the cost of
commissioning and purchasing copyright (or an interest in copyright) in a work for use in the
production where the work is not, or was not, created in New Zealand.
Official
(c)
Publicity and promotional costs incurred after Completion
Publicity and promotional costs incurred after Completion of the production.
the
(d)
Additional audiovisual content incurred after Completion
Costs incurred on additional audiovisual content after Completion of the production and/or on
additional audiovisual content not intended to be released with the production.
(e)
Advances
Recoverable advance payments in respect of Guaranteed Deferments, Participation Payments or
under
Residuals.
(f)
Financing Expenditure
All Financing Expenditure.
(g)
Business overheads cap
Business overheads above 5% of the QNZPE or $500,000 whichever is the lesser.
(h)
Guaranteed Deferments, Participation Payments, Residuals
Released Guaranteed Deferments, Participation Payments, and Residuals.
(i)
Acquisition of Depreciating Asset
Except for copyright acquisition expenditure that qualifies as QNZPE, the costs of acquiring a
depreciating asset and any capital costs invested in that asset. See claus
e 23 for the definition
and treatment of a depreciating asset.
NZSPG Criteria - International FINAL
14
(j)
Legal
Legal fees that are NOT related to (i) the drafting and/or negotiation of production and financing
documents; or (ii) legal advice on issues arising in the normal course of the making of a
production. Applicants should ensure that their legal advisors provide a breakdown of their fees.
(k)
Others
Cast and Crew Perks, gifts, fines, Entertainment and Gratuities.
1982
Act
Information
Official
the
under
Released
NZSPG Criteria - International FINAL
15
SECTION 4 – TREATMENT OF EXPENDITURE
17
Income Tax
The International Grant will be given standard grant treatment for income tax purposes. That is, the cost base
of the production will be reduced by the amount of the International Grant.
The International Grant is treated as excluded income for the purposes of income tax.
18
GST
All figures set out in these criteria are net of GST. As such, the International Grant is calculated in relation to 1982
amounts that are net of GST. However, New Zealand tax law requires that the International Grant is paid GST
inclusive. For this reason, the International Grant will be made to eligible applicants on a GST plus basis with
applicants having to return the GST component in their next GST return.
Act
19
Currency Exchange
All production expenditure incurred in foreign currencies must be converted into New Zealand dollars at the
spot rate on the date of payment or, if this is not practicable, on a monthly basis at the mid-month exchange
rates published by the Inland Revenue
(www.ird.govt.nz).
20
Non-Arm’s Length Expenditure
The basis of the arm’s length principle is to ensure that amounts charged between the applicant and any
associate entities (including parent and subsidiary entities) for the provision of goods or services are
commercially reasonable.
Information
Where the applicant incurs expenditure under a non-arm’s length arrangement that inflates the cost of a
particular good or service in relation to the production, then only the commercial rate for that good or service
is QNZPE. The commercial rate will be taken to be the amount that would have been incurred if the parties
were dealing at arm’s length with each other charging what they would ordinarily charge to an unrelated party.
The arm’s length principle applies to any act or transaction directly or indirectly connected with any
expenditure incurred by the applicant - i.e. the principle still applies if a non-arm’s length deal between other
parties otherwise inflates the expenditure of a particular good or service purchased by the applicant.
Official
21
Non-Accrual Basis of Expenditure
To be QNZPE an expenditure item must have actually been incurred on the making of the specific production
the
for which the application is made. In addition, the applicant must have actually discharged its liability to pay at
the time of final application for the International Grant.
22
Expenditure by Prior Entities
Eligibility for the International Grant extends to an applicant that takes over the production from another
under
entity (or entities) and completes the production. The applicant is taken to have incurred the production
expenditure of the previous entity (or entities) for the purposes of the International Grant. Any costs incurred
by the applicant in the takeover of the production are excluded from QNZPE
.
23
Depreciating Assets
Where an applicant purchases an asset for use in the production and sells or disposes of that asset on the
Completion of the production or on completion of the QNZPE, the net cost of that asset can be claimed as
QNZPE (provided the depreciation occurred in New Zealand).
Where an applicant holds a depreciating asset (other than copyright), uses it to make the production and
Released
retains it at the Completion of the production, then QNZPE (provided the depreciation occurred in New
Zealand) may include so much of the decline in value over the effective life of the asset as is attributable to its
use on the production (for tax purposes).
NZSPG Criteria - International FINAL
16
The definition of a ‘depreciating asset’ for the purposes of the Grant is the same as that used by the IRD.
Further information about the treatment of depreciating assets under Subpart EE of the
Income Tax Act 2007
may be downloaded from the IRD website at
www.ird.govt.nz.
24
Transfer Pricing
When considering the issue of transfer pricing, it is difficult to be prescriptive as transfer pricing analysis is
extremely fact-intensive. However, IRD would favour the use of cost plus methodology for a low risk
production contract, the mark-up varying with the degree of risk assumed by the applicant and the timing of
payments received for services provided.
1982
Act
Information
Official
the
under
Released
NZSPG Criteria - International FINAL
17
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SECTION 5 – APPLICATION PROCESS
25
Initial Assessment Applications
Applicants may (but do not have to) apply for initial assessment of eligibility for an International Grant.
Applicants with television or other non-feature film productions are strongly advised to apply for initial
assessment to ensure that the proposed format meets the relevant criteria.
An Initial Assessment Certificate will provide a non-binding view as to whether a production meets the criteria.
It will lapse six months from the date of issue, unless the production has commenced Principal Photography
within that time period. In exceptional circumstances applicants may apply to the NZFC for an extension to
1982
their Initial Assessment Certificate and may, in any event, submit a new application for initial assessment.
26
Initial Assessment Applications for 5% Uplift
Act
Applicants who wish to apply for initial assessment of eligibility for the 5% Uplift
before submission of a final
application, must submit an application for initial assessment and complete all sections of that application.
27
Exchange Rate Fluctuation and Pre-qualification
Applicants concerned that they may not meet the expenditure threshold for an International Grant solely due
to fluctuations in exchange rates may ‘pre-qualify’ for the International Grant by following the process below.
The applicant should seek initial assessment under claus
e 25 and at the same time should:
(a) notify the NZFC that, solely for the purpose of meeting the expenditure threshold, they may require any
non-New Zealand dollar QNZPE converted at the ‘preset exchange rate’ (defined below); and
Information
(b) nominate the relevant non-New Zealand dollar currency or currencies.
The application for initial assessment must be received by the NZFC no earlier than three months before the
start of Principal Photography or PDV Activity (as the case may be). In the event that the start date is delayed,
the applicant may reapply.
On the date the NZFC receives the application for initial assessment it will obtain the relevant exchange rate/s
Official
from the Reserve Bank of New Zealand. This rate or rates will become the ‘preset exchange rate/s’.
If at the time the applicant submits its application for the International Grant, the QNZPE is below the relevant
threshold, the NZFC will apply the ‘preset exchange rate/s’ against the QNZPE incurred in the nominated non-
the
NZ dollar currency or currencies to recalculate the applicant’s ability to meet the threshold.
In the event that the threshold is then met and the application is approved, the amount of the International
Grant will be calculated and paid on actual QNZPE incurred (using the actual exchange rates as per claus
e 19 to
convert any non-NZ dollar QNZPE).
28
PDV Grant SPV Exception 2
under
Where the SPV requirement exception under claus
e 11.2(e) applies, the final PDV Grant application and
verification process shall be as set out in this clause.
The final application for a PDV Grant in respect of the production may only be made once all PDV Activity on
the production in New Zealand has been completed. The application may not be made later than three
months after Completion of the production.
The total PDV Grant will not exceed 20% (or 25% if the applicant qualifies for the 5% Uplift) of the deemed
QNZPE calculated in accordance with claus
e 11.2(e).
Released
The following information must be included with each application form:
(a)
Approved auditor’s opinion verifying the purchase price;
(b)
A copy of the completed production or sample footage;
(c)
Statutory declaration;
(d)
Further information as requested.
NZSPG Criteria - International FINAL
18
IRD verification of the information provided to the NZFC will be different to verification of other productions,
and will likely focus more on invoices, receipts, and bank statements, as well as review of tax compliance of the
processes of the applicant.
29
Information Before and During Production
For planning purposes applicants should provide advance notice by email
to [email address] of their
intention to apply for an International Grant or PDV Grant and, if shooting is to occur in New Zealand, the
estimated shoot dates.
Throughout the production, the NZFC may request information on estimated QNZPE incurred to date and
forecast QNZPE for the New Zealand Government’s financial planning purposes only.
1982
30
Final Applications
Applicants may submit a final application for an International Grant to the NZFC:
Act
(a) once all QNZPE on the production is completed;
or
(b) each time the QNZPE for the production has exceeded a multiple of $50 million (an
interim application).
Where this occurs, a final application setting out the remaining QNZPE must also be provided once all
QNZPE for the production is completed,
provided that an applicant may not apply for an International Grant later than three months after Completion
of the production (or Completion of the last production within a bundle).
An application must be made on the relevant application form.
In the case of bundled screen productions, applicants may only submit an application once QNZPE on all
productions within a bundle is completed. However, an interim application may be made in respect of any
Information
individual production that has either: (a) completed QNZPE where such QNZPE exceeds the relevant
expenditure threshold; or (b) incurred QNZPE of $50 million or more. Applicants may not apply for an
International Grant later than three months after Completion of the last production within the bundle.
The following information must be included with each final application form:
30.1 Audited expenditure statement
Official
All costs claimed as QNZPE must be presented in an audited expenditure statement. The audit must be
prepared by a person who is:
(a)
qualified under the
Companies Act 1993 to audit companies;
the
(b)
not an officer, partner or employee of the applicant, or a related body corporate of the applicant
(but may be contracted by them from time-to-time on a non-permanent basis). A related body
corporate of an applicant would be a subsidiary of an applicant, the holding entity of an applicant
or a subsidiary of the holding entity of the applicant; and
(c)
approved by the NZFC.
under
The auditor’s report is provided at the applicant’s expense, with the name of the auditor and auditor’s
company or firm, qualifications, and contact details to be provided in the relevant section of the
application form.
30.2 Credit list, proof of distribution, sample footage
An application for an International Grant must include:
(a)
a full final credit list; and
Released
(b)
proof of distribution or exhibition arrangements.
If the production has not been released to the public or international marketing for its imminent release
has not occurred, the NZFC may request a copy of the completed production or a dated selection of
footage. Applications for a PDV Grant need not include a final credit list or a copy of the completed
production unless applying under PDV Grant SPV Exception 2.
NZSPG Criteria - International FINAL
19
30.3 Statutory declaration
The information provided in an application must be certified in a statutory declaration by an authorised
person from the applicant - normally this would be the producer or a director of the applicant entity.
30.4 Further information as requested
The NZFC reserves the right to require any further information deemed necessary to complete the
application process. This information must be provided at the applicant’s expense within 28 days of the
NZFC’s request, although the applicant may write to the NZFC seeking an extension of time.
Applicants should familiarise themselves with the relevant application form and the further information
requested in that form.
1982
31
Credit and Promotional Materials
Act
All applicants should provide an on-screen end credit in the completed production. An example follows:
“
The filmmakers acknowledge the assistance of the New Zealand Government’s Screen Production Grant”
In exceptional circumstances (such as where the provision of a credit is not within the control of the applicant),
the NZFC may agree to waive the on-screen credit requirement.
Applicants are also expected to provide promotional materials to the NZFC in accordance with the
Promotional
Materials Schedule available on the NZFC website.
32
Confidentiality
Information
Certain information supplied by the applicant will be provided to the NZSPG Panel, the IRD, MBIE, MCH and
independent consultants where reasonably necessary during the application and approval process.
The NZFC will use reasonable efforts to maintain the confidentiality of the information provided by the
applicant. The NZFC notes however that it is subject to various disclosure requirements, for example under the
Official Information Act 1982, and shall not be liable for any disclosure it believes (acting reasonably) it is
required to make.
Official
As such, the applicant should clearly indicate those parts of its application that it regards as commercially
sensitive and confidential. In processing a request under the
Official Information Act 1982, the NZFC will
consult the relevant applicant prior to a decision on release of information.
the
33
Information for Research Purposes
The NZFC may wish to use information provided by the applicant for research purposes; for example, as part of
a study on the broader economic effects of a production. Information would only be used with the written
agreement of the applicant.
under
34
Exit Survey
In the final application form, applicants may be asked to complete a written survey about their experience of
making a production in New Zealand. This information will be used for research and marketing purposes and,
unless the applicant agrees otherwise, it will be treated confidentially and only non-identifying aggregate
information will be made public.
35
Further Information
For further information on these criteria and the process of applying for an International Grant please contact
the Screen Incentives Manager on tel: +64 (0)4 382 7680, email: [email address].
Released
For information about taxation and other obligations of entities commencing business in New Zealand, filing
business activity statements and annual income tax returns consult the IRD website at
www.ird.govt.nz, or
IRD’s screen production desk’s website at
www.ird.govt.nz/industry-guidelines/screen-production/.
NZSPG Criteria - International FINAL
20
36
Application Forms
Application forms can be downloaded from the NZFC website at www.nzfilm.co.nz/funding/feature-
films/production-funding/new-zealand-screen-production-grant.
Applications, including all required documentation, should be sent to:
Screen Incentives Manager
NZ Film Commission
PO Box 11 546
Manners Street
Wellington 6142
1982
New Zealand
Courier address:
Level 3
Act
119 Ghuznee Street
Wellington 6011
New Zealand
Email address:
[email address]
Information
Official
the
under
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NZSPG Criteria - International FINAL
21
link to page 46
SECTION 6 – ASSESSMENT PROCESS
37
NZSPG Panel
The NZSPG is administered by the NZFC. Applications for an International Grant will be assessed by a panel
made up of industry practitioners and representatives from the NZFC, MCH and MBIE (
NZSPG Panel). The
NZSPG Panel will assess whether applications satisfy the criteria. A representative from the IRD is invited to
attend all NZSPG Panel meetings.
A separate verification panel will be responsible for assessing whether productions and applicants pass the
Significant Economic Benefits Test. See claus
e 38 for details.
1982
38
Assessment of Eligibility for the 5% Uplift
A significant economic benefits verification panel (
SEB Verification Panel) will determine whether a production
Act
and applicant pass the Significant Economic Benefits Test and are therefore eligible for the 5% Uplift. The SEB
Verification Panel will endeavour to make this determination within four weeks of receiving a complete
application.
Due to the nature of the Significant Economics Benefits Test (particularly section D), applicants should ensure
that an authorised person of the applicant is available to engage with and provide further information to the
NZFC and SEB Verification Panel during the assessment process.
Applicants who pass the Significant Economic Benefits Test may be required to enter into an agreement with
the New Zealand Government that will set out the basis upon which the applicant will satisfy the Significant
Economic Benefits Test.
Information
39
Independent Consultants
The NZSPG Panel and the SEB Verification Panel may seek the advice of one or more independent consultants
to provide an independent assessment of any matters relating to the criteria, the International Grant or the
Significant Economic Benefits Test.
Where necessary the consultant may seek further information from the applicant or its auditor. Where this
information relates to non-arm’s length issues, the consultant may seek information on the process and
Official
methodologies adopted to show that the amounts charged accord with the arm’s length principle. All
consultants will be subject to a contractual duty of confidentiality.
the
40
IRD Verification and Payment of International Grant
Payment of the International Grant is dependent on:
(a)
the IRD verifying the quantum of the potential claim for QNZPE against records held by the IRD; and
(b)
approval by the NZSPG Panel.
under
Once a complete final application has been received, the NZFC will endeavour to process the application within
three months. Payment of the International Grant will be made by MBIE upon advice from the NZFC and
receipt of an invoice from the applicant.
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NZSPG Criteria - International FINAL
22
ANNEXURE 1 – FURTHER DEFINITIONS AND INTERPRETATION
Where used in these criteria, the terms below shall have the meaning or be interpreted as follows:
Cast and Crew Perks means benefits (for example; companion airfares, a personal chef) provided to a cast or
crew member that are not part of the total contracted remuneration package for that person.
Completed or Completion means when a production is first in a state where it could reasonably be regarded as
ready to be distributed, broadcast or exhibited to the general public. For different formats, this means:
(a)
feature film – when it is completed to Digital Cinema Package (DCP) format or any replacement format; 1982
(b)
single episode programme – when the programme is finished to master video tape stage (or digital
equivalent) with credits ready for broadcast;
Act
(c)
series – when the series of programmes are finished to master video tape stage (or digital equivalent)
with credits ready for broadcast;
(d)
season of a series – when the programmes are finished to master video tape stage (or digital equivalent)
with credits ready for broadcast, completed within one defined time period or “season” of a series.
Entertainment includes alcohol, wrap parties, and meals outside the production base unless such meals are in
place of standard production catering for cast and crew.
Final Certificate means a certificate issued to an applicant by the NZFC that states whether or not, on the basis
of the information included in a final application, a production has qualified for an International Grant and the
amount of that International Grant.
Information
Financing Expenditure includes expenditure connected with raising and servicing finance for the production,
such as interest payments on loans to cashflow the International Grant, development loans and pre-sales or
gap funding cashflowed to the production budget (but not deferrals).
Gratuities includes tips, koha and similar payments for which no invoice or receipt is provided.
Official
Guaranteed Deferments means
payments to personnel or the production entity (including payments for story
rights) that are quantifiable prior to Completion of the production but are payable after Completion of the
production.
the
Initial Assessment Certificate means a certificate issued to an applicant by the NZFC that states whether or
not, on the basis of the information included in an initial assessment application, a production is likely to
qualify for an International Grant.
Incurred,
for the purposes of the NZSPG,
means paid in cash.
under
LBSPG means the Large Budget Screen Production Grant scheme that was introduced by the New Zealand
Government in 2003 and that has been replaced by the NZSPG.
MBIE means the New Zealand Ministry of Business, Innovation and Employment, or any entity that replaces
that entity.
MCH means the New Zealand Ministry for Culture and Heritage, or any entity that replaces that entity.
New Zealand Tax Resident means:
Released
(a) in the case of a natural person, a person that the
Income Tax Act 2007 treats as a New Zealand resident
under section YD 1; or
(b) in the case of a company, a company that the
Income Tax Act 2007 treats as a New Zealand resident under
section YD 2.
NZSPG Criteria - International FINAL
23
Participation Payments means payments to personnel or the production entity (including payments for story
rights) that are contingent on gross and/or net receipts of the production.
Principal Photography means:
(a)
for drama: the period of time during which the main shooting of the production takes place. It is
expected that certain key shooting cast and crew (such as the director, director of photography, key cast,
hair and make-up, continuity) will be present. The period of time is usually a fixed period, however,
where a pick-up shoot, second unit shoot or re-shoot meets this criteria, it will also be considered
principal photography.
1982
(b)
for documentaries: the period of time required to capture the image of the subject matter of the
production where the director, or in some cases, the field director, is present for the shoot. The shoot
does not need to occur over a fixed period of time. Interviews with key subjects and time critical
photography will be considered principal photography.
Act
(c)
for animation: the period from the day on which production of the animated image commences until the
day that the animated images are completed.
Residuals means any residual payments due to personnel (including those distributed by guilds, unions or
other collecting bodies) for exhibition and distribution of a production other than its original release (these are
not classified as Participation Payments).
SPIF means the Screen Production Incentive Fund that was introduced by the New Zealand Government in
2008 and that has been replaced by the NZSPG.
Information
Official
the
under
Released
NZSPG Criteria - International FINAL
24
ANNEXURE 2 – SIGNIFICANT ECONOMIC BENEFITS GUIDELINES
1982
NEW ZEALAND SCREEN PRODUCTION GRANT
Act
International Productions
Assessment of Significant Economic Benefits
Information
Guidelines
1 April 2014
Official
the
under
Released
NZSPG Criteria - International FINAL
25
New Zealand Screen Production Grant
Assessment of Significant Economic Benefits – Guidelines
Introduction
The New Zealand Screen Production Grant (
NZSPG) was introduced by the New Zealand Government on 1 April
2014.
All international productions that meet the relevant specific eligibility criteria and the general eligibility criteria 1982
for the NZSPG are able to access a grant equivalent to 20% of QNZPE.
Certain productions may be entitled to an additional 5% (
5% Uplift) if they can demonstrate significant
Act
economic benefits to New Zealand.
These guidelines have been developed to provide information for producers on how assessment of a
production’s significant economic benefits will be made.
The guidelines reflect that screen productions can raise New Zealand’s profile internationally, attract high
value tourists, and profile our innovative and creative people and technologies. It is expected that productions
with significant economic benefits will be well placed to market, promote and showcase New Zealand.
This document should be read in conjunction with the full criteria and other documentation for the NZSPG.
Information
Assessment
The assessment of whether a production will bring significant economic benefits to New Zealand will be made
on the following basis:
A production that receives at least 20 points out of a possible 30 points will be considered as bringing
significant economic benefits to New Zealand for the purposes of the NZSPG.
Official
The production must receive a minimum number of points in Section A (Expenditure) and Section D
(Wider Economic Benefits).
the
Certain productions will be able to fast-track to Section D (Wider Economic Benefits) where:
The applicant (or a related entity of the applicant) has incurred QNZPE of $100 million in the past five
years; or
The production is a feature film with QNZPE of $150 million or more; or
under
The production is a TV series or other format with QNZPE of $80 million or more.
Released
NZSPG Criteria - International FINAL
26
Assessment of Significant Economic Benefits – Points Test
Points Available
A – Amount of Past Expenditure or Expenditure on Current Production
Either:
Fast Track based on QNZPE in NZD of past expenditure or expenditure on current production
Fast Track to
Section D
If applicant (including a related entity of the applicant) has incurred QNZPE of $100m or more in the
1982
past five years; or
The production is a feature film with QNZPE of $150m or more; or
Act
The production is a non-feature film with QNZPE of $80m or more.
Or:
A1 – QNZPE in NZD of expenditure on current production
Up to 6
Feature film: A mandatory minimum $30m QNZPE (1pt). Additional point for each $10m QNZPE up
to $80m.
Non-feature film: A mandatory minimum $25m QNZPE (1pt). Additional point for each $10m QNZPE
up to $75m.
Total – Section A (maximum: 6 points and minimum: 1 point) 6
Information
B – New Zealand Production Activity
B1 – Shooting – Location/Studio (50% for 1, 75% for 2, 90% for 3)
Up to 3
B2 – Visual Post-Production (50% plus)
1
B3 – Audio Post-Production (50% plus)
1
B4 – Digital or Visual Effects (50% for 1, 75% for 2 or $5m for 1, $10m for 2)
Up to 2
Official
B5 – If applicable, Concept Design & Physical Effects (Period/Genre) and/or Research & Development
Up to 2
(documentaries) (50% for 1, 75% for 2)
the
B6 – 75% or more of total budget is QNZPE (1 bonus point available if maximum points not achieved
1
in B1-B5)
Total – Section B (maximum: 9 points) 9
C – New Zealand Personnel
To qualify, individuals must be a New Zealand citizen or permanent resident at the time the
under
production is being made.
C1 – Director/Producer/Writer (1 point if 1 of 3, 2 points if 2 of 3)
Up to 2
C2 – Lead or Supporting Cast (1 point if 2 supporting cast, 2 points if 1 lead or 3 or more supporting
Up to 2
cast)
C3 – Majority of Cast (75% plus)
1
C4 – Key Production Staff – DOP, Editor, Production Designer, Composer, Sound Designer, Sound
Up to 3
Editor, Sound Mixer, VFX Supervisor, 1st Assistant Director, 2nd Unit Director, Line Producer, Costume
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Designer, Key Make-up & Hair (0.5 pt per role, maximum of 3 points)
C5 – Majority of Crew (75% plus)
1
C6 – 90% or more of total cast or crew are qualifying persons (1 bonus point available if maximum
1
not achieved in C1-C5)
Total – Section C (maximum: 9 points)
NZSPG Criteria - International FINAL
27
D – Wider Economic Benefits
Are you able to provide wider economic benefits to New Zealand or the New Zealand screen industry?
D1 – Marketing, promoting and showcasing New Zealand
Up to 3
D2 – Placement of New Zealand in screen production
Up to 2
D3 – Investment in New Zealand infrastructure
Up to 2
D4 – Investment in innovation, technology or knowledge transfer
1
1982
D5 – Skills and/or talent development
1
For productions that fast track from Section A only.
1
Act
D6 – Other New Zealand production activity or personnel
Total – Section D (maximum: 6 points and minimum: 3 points which must include 2 points from D1 6
and/or D2)
To qualify as bringing significant economic benefits to New Zealand a production must either:
__ (out of 30)
score a minimum of 20 points in the above points test (and meet the minimum points
requirements in Sections A and D), or
achieve ‘Fast Track’ status and meet the minimum points requirements in Section D.
Information
Official
the
under
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NZSPG Criteria - International FINAL
28
link to page 42
Section A – Amount of Past Expenditure or Expenditure on Current Production
Fast Track – Past Expenditure or Expenditure on Current Production
If the production meets the criteria in this section and scores the minimum points in Section D, then it is
considered to have “Fast Track” status and is not required to score any points in Sections B or C.
Past Expenditure
If the applicant (or a related entity to the applicant*) has incurred QNZPE in New Zealand dollars of $100
1982
million or more on another production or productions in either (at the applicant’s option):
the five years preceding the date of the initial assessment application, provided Principal Photography
on the current production starts no later than 12 months after the date of the initial assessment
application; or
Act
the five years preceding the date of the final application for the current production.
*a related entity is one that has 50% or more shareholding in common with the applicant. In exceptional
cases, where a related entity does not meet this requirement but the applicant can provide evidence of
another means of association or control, the NZFC may accept that that entity is related to the applicant for
the purposes of this section.
Past QNZPE will be measured on the total QNZPE approved for the applicant (or a related entity of the
applicant) by the Large Budget Screen Production Grant Panel, SPIF Committee or NZSPG Panel.
Expenditure on Current Production
Information
Feature films with QNZPE (in New Zealand dollars) of $150 million or more.
Non-feature films with QNZPE (in New Zealand dollars) of $80 million or more.
A1: Points –Expenditure on Current Production
Official
Feature films with QNZPE (in New Zealand dollars) of:
Greater than or equal to $30 million but less than $40 million
1 point
Greater than or equal to $40 million but less than $50 million
2 points
the
Greater than or equal to $50 million but less than $60 million
3 points
Greater than or equal to $60 million but less than $70 million
4 points
Greater than or equal to $70 million but less than $80 million
5 points
Greater than or equal to $80 million
6 points
TV and other non-feature films with QNZPE (in New Zealand dollars) of:
under
Greater than or equal to $25 million but less than $35 million
1 point
Greater than or equal to $35 million but less than $45 million
2 points
Greater than or equal to $45 million but less than $55 million
3 points
Greater than or equal to $55 million but less than $65 million
4 points
Greater than or equal to $65 million but less than $75 million
5 points
Greater than or equal to $75 million
6 points
For initial assessment applications, applicants must submit a detailed spreadsheet of the production’s
estimated QNZPE in New Zealand dollars. Applicants may use the budgeted exchange rate or the Inland
Released
Revenue’s mid-month rate for the month in which the application is lodged
(www.ird.govt.nz). Applicants who
are concerned that the minimum expenditure thresholds for this test may not be achieved solely due to
exchange rate fluctuations may apply to pre-qualify. Please see claus
e 27of the criteria for details of this
process.
NZSPG Criteria - International FINAL
29
Please note that final assessment of whether a production meets the above thresholds will be based on the
level of QNZPE approved at final application stage. If this is below the estimated QNZPE, this may adversely
impact on the points scored and may affect the production’s eligibility for the 5% Uplift.
1982
Act
Information
Official
the
under
Released
NZSPG Criteria - International FINAL
30
Section B – New Zealand Production Activity
Except for Principal Photography, the amount of work on a film-making activity in this section will be calculated
by the amount of expenditure on that work. This will include: where a person works on a film, where goods are
supplied from and/or where the services are performed.
Where expenditure on a film-making activity is split between activity inside and outside New Zealand then
expenditure must be claimed in proportion to the location of that activity.
1982
Information regarding the ownership of any equipment and technical facilities used by an applicant to claim
points under this section may be requested.
If, due to exceptional circumstances beyond the applicant’s control, the actual percentage of shooting days
Act
carried out in New Zealand or the actual percentage of QNZPE is less than the estimated percentage included
in an initial assessment application and this results in the applicant failing to pass this points test, then the
applicant may make a case for reconsideration of its eligibility for the 5% Uplift.
B1 – Shooting – Location/Studio
Up to 3 points will be awarded for the location and/or studio shooting carried out in New Zealand, on the
following basis:
1 point can be awarded if at least 50% of the location and/or studio shooting is carried out in New
Zealand.
2 points can be awarded if at least 75% of the location and/or studio shooting is carried out in New
Information
Zealand.
3 points can be awarded if at least 90% of the location and/or studio shooting is carried out in New
Zealand.
Location/Studio shooting includes Principal Photography at any studio, location, warehouse or other place
where filming takes place. It does not include any shooting done by second or other units. It will be measured
by reference to the number of days spent of the work as set out in the shooting schedule.
Official
B2 – Visual Post-Production
the
1 point will be awarded for the visual post-production if at least 50% of the total budget for visual post-
production is QNZPE.
Visual post-production means:
General
under
Editing off line, on line.
Licence fees for stock footage.
Clearances library (provided copyright is held by a New Zealand Tax Resident).
Clearances sound (provided copyright is held by a New Zealand Tax Resident).
Film Laboratory
Film restoration and repair.
Credits, titles and roller.
Stills manipulation.
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Grading.
Negative inspection, negative pulling, cutting, logging, assembly cutting and pulling and assembling of
scan rolls.
Opticals including fades, wipes, dissolves, 16 mm Blow Up to 35mm, Super 35mm squeeze to achieve
cinemascope aspect ratio, reduction, speed change, ramping, racking, zooms, titles, credits, credit
roller, subtitles, textless backgrounds.
NZSPG Criteria - International FINAL
31
One set each (purchased by production) of:
o Answer prints from cut master negative (also known as trial prints);
o Interpositive/internegative as opposed to plural negatives;
o Answer print/s ex internegative - with sound;
o Sound negative including shooting and printing (but excluding SDDS negative).
Digital negative processing and print from digital negative.
Digital Post-Production
Telecine transfers or film scanning and dubs to tape or files.
Film Scanning and recording.
Digital Intermediates including film scanning/data importing, data management and logging,
1982
conforming, colour grading, outputting of data, and sound laybacks.
Graphics, titles, idents, credit roller, subtitles, textless backgrounds.
Mastering includes standards and aspect ratio conversion, delivery copies for Standard Definition and
Act
High Definition, deliverables for HD and Blu-ray, DVD and Video duplication (one set only).
Digital Cinema Distribution Mastering (DCDM).
Data management and storage.
File transfers (provided the cost is paid in New Zealand).
NOT INCLUDED: Digital Cinema Package (DCP)
B3 – Music Recording, Voice Recording, Sound Post-Production
1 point can be awarded if at least 50% of the total budget for music recording, voice recording activities and/or
sound post-production is QNZPE.
Information
Music recording does not include source music. The performing and recording of the following qualify: a new
piece of music composed for the film; or a new arrangement/score of an existing piece of music, created
specifically for the film.
Sound post-production means:
Music: composing, scoring, recording, tracklay, pre mixing and mixing.
Official
ADR/Dialogue replacement, file transfers and laybacks. Voiceovers, synching and laybacks.
Sound design and editing.
Tracklay - atmospheres and effects, spot effects.
the
Foley effects, recording and tracklay.
Any additional sound recording recorded by a sound editor be it in post-production stage or
production for location specific sounds.
Sound mixing.
Pre dubbing dialogue, atmospheres and effects.
Final Mixing, Print master, Music and Effects track, Dialogue Music and Effects track, TV mix, 5.1 mix.
under
Home theatre mix, speed changes, 6 and 4 track mag tracks, drive usage and stock.
Sound delivery items (one set only purchased by production).
NOT INCLUDED: Dolby, SDDS and DTS licence fees.
For animation only: Work on voice recording will also be eligible. 1 point will be awarded if at least 50% of the
total budget for this activity is QNZPE.
B4 – Visual Effects Production
Released
Either:
1 point can be awarded if at least 50% of the total budget for Visual Effects Production is QNZPE.
2 points can be awarded if at least 75% of the total budget for Visual Effects Production is QNZPE.
Or:
1 point can be awarded if at least $5 million QNZPE is spent on Visual Effects Production.
NZSPG Criteria - International FINAL
32
2 points can be awarded if at least $10 million QNZPE is spent on Visual Effects Production.
Visual Effects Production means:
Pre Visualisation (Pre Vis) 3D storyboards outlining placement, movement, shape and elements needed for the completion of VFX shots.
VFX Plates
Models and miniatures.
Motion capture.
Animatronics.
1982
Elements including pyrotechnics and fire, lightning, smoke, dust, water and clouds.
CGI/3D
Act
3D animation.
Digital creatures.
Digital doubles.
Digital environments.
Virtual studio and sets.
Other digital effects.
2D
Rotoscoping.
Digital matte painting.
Compositing.
Information
Film treatment and restoration.
Wire effects removal.
2D animation.
Sky replacement.
Editing and grading.
Official
For animation only: Costs incurred on shooting, visual design, and layout and storyboarding, will also be
eligible.
B5 – Concept Design and Physical Effects or Research and Development
the
For productions where Concept Design and Physical Effects are a significant part of the production e.g. genre
or period:
1 point can be awarded if at least 50% of the total budget for Concept Design and Physical Effects is
QNZPE. under
2 points can be awarded if at least 75% of the total budget for Concept Design and Physical Effects is
QNZPE.
For documentaries only:
1 point can be awarded if at least 50% of the total budget for Research and Development is QNZPE.
2 points can be awarded if at least 75% of the total budget for Research and Development is QNZPE.
B6 – Bonus point for proportion of budget that is QNZPE
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1 point can be awarded if at least 75% of the total budget is QNZPE. The total budget must include all above-
the-line and below-the-line items usually included in budgets for similar productions.
NZSPG Criteria - International FINAL
33
Section C – New Zealand Personnel
For the purposes of this test, a qualifying person means a citizen or a permanent resident of New Zealand.
To qualify, a person must be a qualifying person at the time the production is made. If a person holds dual
nationality he/she may choose either nationality for the purpose of the test.
C1 – Director/Producer/Writer
1 point can be awarded if at least 1 of the producer, director or writer are qualifying persons;
1982
2 points can be awarded if at least 2 of the producer, director or writer are qualifying persons.
Where there are multiple directors (for example for a series of episodes), 1 point can be awarded if the
majority of the episodes are directed by qualifying persons.
Act
Where there is more than one director (for example for a feature film), applicants will be asked to make a case
for who is the lead, except where there are joint and equal directors in which case an applicant may choose
either to be the lead. The lead director will be determined by taking into account factors including: the person
who takes the credit in the production, the creative input and time spent working on the production.
Applicants will be asked to make a case for who are the lead producers. A producer is defined as an individual
with decision-making authority who plays an active role throughout the pre-production, production and post-
production of a production and assumes responsibility for the physical process of production and carrying
through practical and financial arrangements for the making of the production. Executive producers and
associate producers will generally not be considered lead producers. Line producers are considered under C4.
Information
Where there are multiple scriptwriters (for example for a series of episodes) 1 point can be awarded if at least
66% of the scriptwriters are qualifying persons.
Applicants will be asked to make a case for who are the scriptwriters. A scriptwriter will be determined by
taking into account factors including: the person who takes the credit in the production, creative input on the
script and time spent working on the script. Official
C2 – Lead and/or Supporting Cast
the
1 point can be awarded if two of the supporting cast are qualifying persons.
2 points can be awarded if one of the lead actors or three of the supporting cast are qualifying
persons.
Applicants will be asked to make a case for who are the lead and supporting cast. The lead and supporting cast
will be determined by taking into account factors including: the number of days worked in front of the camera
under
and the centrality of the actor’s role in the production.
For animations only: this will include actors voicing characters.
For documentaries only: this will include the presenter, narrator, or other person who participates or appears
in or is otherwise the subject of a documentary.
C3 – Majority of Cast
1 point can be awarded if at least 75% of the cast are qualifying persons.
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‘Cast’ means all the actors and performers (including stunt men and women) but not extras that appear in the
production.
For the purposes of this test, ‘extras’ means: a person who appears in a production where a non-specific, non-
speaking character is required, usually as part of a crowd or in the background of a scene.
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For animations only: this will include actors voicing characters.
For documentaries only: this will include the presenter, narrator, subject or other person who participates and
appears in a documentary.
C4 – Key Production Staff
Up to 3 points will be awarded for key production staff, on the following basis:
0.5 points can be awarded for each of the key production staff who are qualifying persons.
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Key production staff are: the lead cinematographer, the lead production designer or art director, the lead
editor, the lead digital/visual/special effects supervisor, the composer, the lead sound designer, the lead sound
editor, the lead sound mixer, the first assistant director, the second unit director (if applicable), the line
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producer, the costume designer, key make-up and hair.
For documentaries only, the key production staff are: the lead camera, the lead/field sound recordist, sound
designer, sound mixer, sound editor, the lead editor and the lead researcher.
For animations only, the key production staff are: the animation director, lead layout supervisor, the lead
production designer, the lead character designer, the lead editor, the lead sound designer, the lead visual
effects supervisor and the lead modelling supervisor.
C5 – Majority of Crew
Information
1 point can be awarded if at least 75% of the production crew are qualifying persons.
Production crew means all the people directly involved in the making of a production but who do not appear in
the production. That is, people involved directly in the production and post-production stages but not people
involved in providing ancillary services e.g. caterers.
Whether a person is or is not in the production crew will be determined by taking into account factors
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including: whether he or she is contracted by the production company to perform services on the film; and
whether he or she is given industry-standard on-screen credits.
C6 – Bonus point for Total Cast or Crew
the
1 point can be awarded if at least 90% of the cast (as defined in C3) or production crew (as defined in C5) are
qualifying persons.
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Section D – Wider Economic Benefits
In the case of each of these categories, the intention is that the benefits will be material and over and above
something that might have occurred in the usual course of a production.
All productions must gain a minimum of 3 points in Section D including a minimum of 2 points from D1
and/or D2.
D1 – Marketing, promoting and showcasing New Zealand
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Intent of benefit
New Zealand has achieved considerable success through being able to associate productions made here with
New Zealand and through communicating the message “made in and with New Zealand”. At its most
developed, such as
The Hobbit, New Zealand has been showcased most effectively, with direct benefit for our
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tourism and screen industries.
Broadly speaking, New Zealand wishes to:
1. Associate the screen production with New Zealand in order to showcase New Zealand; and
2. Link locations used in the production with New Zealand; and
3. Utilise the production to highlight the talents of the New Zealand screen industry involved.
Points
Up to 3 points are available to market, promote or showcase New Zealand or the New Zealand screen industry
resulting in positive brand recognition. Different productions have different showcasing value for New Zealand
Information
and this is recognised in the points. The largest number of points are available when a strategic partnership can
be developed with a New Zealand government agency or related entity. At this level, both the production and
New Zealand would have a high degree of active engagement with each other.
Imaginative proposals are encouraged including cross-sector marketing or initiatives that may open up new
markets to New Zealand or give New Zealand better access to capital, tourism, screen or other markets.
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The table below provides further information on the 1 to 3 points scale for D1.
Requirements
Points
the
As per the Promotional Materials Schedule on the NZFC
1 point
website:
Before and during production – key marketing contact and
media and promotional materials as they are released.
After completion of production – hi-res publicity stills, key art,
trailers, press kits, electronic press kit, schedule of restrictions.
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Very large productions – additional materials to be negotiated
on a case-by-case basis.
Some productions are better placed than others to be able to showcase New Zealand and provide marketing
opportunities of significance. It is expected that applicants able to achieve two or three points in D1 will be
able to demonstrate the geographic and demographic markets their production will reach and that these align
with New Zealand’s interests. They will also be able to demonstrate their capacity to work with New Zealand
to realise effective marketing partnerships.
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As above, plus enhanced access to the production (during and
2 points
post shoot) for relevant New Zealand government agencies or
related entities giving the ability to interview key cast and
Difference between 2 points and 3 is the
crew, and access to screen production assets.
degree and scale of active leverage by the New
Zealand government agencies or related
Can include commercial partnerships negotiated with suitable
entities and the applicant; and the extent to
New Zealand partners.
which the production can enable New Zealand
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government agencies or related entities to
generate their own marketing content (as
opposed to utilising production material as per
one point.)
As above, plus full strategic partnership with New Zealand
3 points
government agencies or related entities which leverages:
1. Access to screen production assets including branding,
To gain the full 3 points, a partnership with a
imaging and moving footage for use in paid, owned and
New Zealand government agency or related
earned media.
entity would need to be negotiated and
2. The ability to interview key cast and crew while they are in
confirmed. New Zealand has an effective track
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New Zealand for use in paid, owned and earned media.
record of such partnerships which have worked
3. Opportunities for media to visit and experience location
to enhance both the production’s interests as
shooting (when appropriate).
well as those of New Zealand.
The Hobbit is
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4. Opportunities around the premiere and release of the
such an example.
screen production worldwide.
New Zealand would also be interested in:
- Opportunities to explore commercial partnerships such as
the establishment of a screen attraction utilising sets, props
and costumes and other IP from the production.
- Where appropriate, opportunities to access the fan base for
the production.
- Other opportunities that are specific to the particular
production and the production partners involved in it.
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D2 – Placement of New Zealand in screen production
Intent of benefit
New Zealand recognises that some productions offer the possibility to incorporate New Zealand on-screen, and
that this can have equivalent benefits to marketing partnerships if it is of sufficient weight.
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Points
Up to 2 points will be awarded if an association of significance with New Zealand can be created on-screen,
which would lead to New Zealand brand recognition (assuming the box office or ratings success of the
the
production).
In order to achieve this,
the screen production may utilise:
-
New Zealand as a setting and, if identifiable as New Zealand and depending on the significance (e.g. a
reasonable amount of screen time, not a passing reference), then points may be awarded;
under
-
a New Zealand performer to play a New Zealand character in a significant role (lead or supporting)
and depending on the significance of the role, then points may be awarded;
-
other possibilities the applicant wishes to propose.
D3 – Investment in New Zealand infrastructure
Intent of benefit
New Zealand is interested in developing its screen industry infrastructure (both physical and business
capability) in order to enhance the offering to future productions. We recognise that incoming productions can
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assist New Zealand with this and in a number of cases, such developments constitute a legacy where, but for
the production, this investment would not have occurred.
Points
Up to 2 points will be awarded for:
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-
physical infrastructure which the applicant is able to facilitate being developed, or alternatively left in
New Zealand;
-
merchandising or ancillary business opportunities for New Zealand companies (associated games,
merchandising contracts, related transmedia production, app developments and so on).
The ability to gain 2 points in this section will depend on the significance of the investment. Major capital
investment or ancillary business activity is likely to qualify for 2 points, more minor proposals for 1 point. We
also anticipate that significant commercial developments could be undertaken with New Zealand partners.
Examples:
New Zealand is aware of partnerships around the world which have resulted in the construction of specialist
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soundstages, or specific equipment or facilities such as water tanks. This category can also include providing
significant equipment to an educational institution at the end of production.
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D4 – Investment in innovation, technology or knowledge transfer
Intent of benefit
New Zealand recognises that some productions will be well-placed to extend New Zealand’s knowledge base
within the screen sector or to other sectors by:
-
use of innovative production technologies not already found in New Zealand;
-
transfer of know-how to New Zealand personnel;
-
entering into commercial partnerships to develop new technologies or methods;
-
research and development initiatives.
Points
Information
1 point will be awarded for productions that can demonstrate one or more of the above outcomes.
Examples:
-
First use of new camera technology in New Zealand (3D for
Avatar, high frame rate for
The Hobbit,
LIDAR/HDRI/photogrammetry for
Walking with Dinosaurs 3D).
-
Massive software developed for
The Lord of the Rings, high speed camera rigs developed for
Spartacus, specialised prosthetics for
The Hobbit.
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-
Scanning software developed for film and now used by the healthcare industry.
-
New or advanced data management practices.
D5 – Skills and/or talent development
the
Intent of benefit
New Zealand is keen to grow its capability in key creative roles such as above-the-line personnel and heads of
department. It is expected that most productions will take on trainees in junior roles or that crew may “step
up” into new roles over a period of time. To gain points under this section, the focus should be on skills and/or
talent development that would not happen in the normal course of a production and is focused at developing
under
more senior personnel.
Points
1 point will be awarded for productions that can demonstrate the above outcomes.
Examples:
-
Paid internships.
-
Mentoring opportunities.
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For productions that fast-track from Section A only
D6 – Other New Zealand production activity or personnel
Intent of benefit
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New Zealand wishes to encourage productions to undertake as much New Zealand production activity as
possible or engage significant numbers of New Zealand personnel. For productions that fast-track from Section
A, we expect that productions would commit to activities or personnel over and above what they would do in
the normal course of a production.
Points
1 point will be awarded if a production undertakes a substantial amount of activity in New Zealand that would
not otherwise have occurred. Proposals should align with the activities and personnel set out in section B or C.
Examples:
-
Undertaking an additional motion-capture, elements or plate shoot in New Zealand.
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-
Undertaking some post-production in New Zealand.
-
Undertaking concept design and physical effects in New Zealand.
-
Engaging a New Zealand head of department for an offshore shoot.
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Information
Official
the
under
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ANNEXURE 3 – PDV ACTIVITY
Post-Production:
General
Editing off line, on line
Licence fees for stock footage
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Clearances library (provided copyright is held by a New Zealand Tax Resident)
Clearances sound (provided copyright is held by a New Zealand Tax Resident)
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Film Laboratory
Film restoration and repair
Credits, titles and roller
Stills manipulation
Grading
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Negative inspection, negative pulling, cutting, logging, assembly cutting and pulling and assembling of
scan rolls.
Opticals including fades, wipes, dissolves, 16 mm Blow Up to 35mm, Super 35mm squeeze to achieve
cinemascope aspect ratio, reduction, speed change, ramping, racking, zooms, titles, credits, credit
roller, subtitles, textless backgrounds. Official
One set each (purchased by production) of:
o Answer prints from cut master negative (also known as trial prints)
the
o Interpositive/internegative as opposed to plural negatives
o Answer print/s ex internegative - with sound.
o Sound negative including shooting and printing (but excluding SDDS negative)
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Digital negative processing and print from digital negative
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Sound Post-Production
Music: composing, scoring, recording, track lay, pre mixing and mixing.
ADR/Dialogue replacement, file transfers and laybacks. Voice overs, synching and laybacks.
Sound design and editing.
Tracklay - atmospheres and effects, spot effects.
Foley effects, recording and tracklay.
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Any additional sound recording recorded by a sound editor be it in post-production stage or
production for location specific sounds.
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Sound mixing
Pre dubbing dialogue, atmospheres and effects.
Final Mixing, Print master, Music and Effects track, Dialogue Music and Effects track, TV mix, 5.1 mix.
Home theatre mix, speed changes, 6 and 4 track mag tracks, drive usage and stock.
Sound delivery items (one set only purchased by production).
NOT INCLUDED: Dolby, SDDS and DTS licence fees.
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Digital Post-Production
Telecine transfers or film scanning and dubs to tape or files.
Film Scanning and recording.
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Digital Intermediates including film scanning/data importing, data management and logging,
conforming, colour grading outputting of data, and sound laybacks.
the
Graphics, titles, idents, credit roller, subtitles, textless backgrounds.
Mastering includes standards and aspect ratio conversion, delivery copies for Standard Definition and
High Definition, deliverables for HD and Blu-ray, DVD and Video duplication (one set only).
Digital Cinema Distribution Mastering (DCDM).
under
Data management and storage.
File transfers (provided the cost is paid in New Zealand)
NOT INCLUDED: Digital Cinema Package (DCP)
Visual Effects Production
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Pre Visualisation (Pre Vis)
3D storyboards outlining placement, movement, shape and elements needed for the completion of
VFX shots.
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VFX Plates
Models and miniatures
Motion capture (see note 1 below)
Animatronics
Elements including pyrotechnics and fire, lightning, smoke, dust, water and clouds.
CGI/3D
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3D animation (see note 1 below)
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Digital creatures
Digital doubles
Digital environments
Virtual studio and sets
Other digital effects
2D
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Rotoscoping
Digital matte painting
Compositing
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Film treatment and restoration
Wire effects removal
the
2D animation (see note 1 below)
Sky replacement
Editing and grading
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NOTE 1: For the avoidance of doubt, all costs relating to motion capture and animation activities are
QNZPE even if they are incurred during Principal Photography.
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Document Outline
