Avatar Brings $307m to NZ Economy
January 27, 2010 New Zealand Finance
The box-office hit Avatar has attracted in excess of NZD307 million to the New Zealand economy during the time of its filming in the country.
According to a press release issued by Gerry Brownlee, Economic Development Minister of New Zealand, on January 24th, the award winning film delivered millions of dollars in expenditure to the economy. He claimed that this boon would not have been possible without the government’s Large Budget Screen Production Grant (LBSPG) scheme, from which Avatar has already received NZD44.69 million in tax rebates.
The LBSPG was instituted in the Taxation (GST, Trans-Tasman Imputation and Miscellaneous Provisions) Act 2003 and originally provided a 12.5 percent tax rebate on aspects of productions that exceeded a preset expenditure level. In mid-2007 the grant was increased to 15 percent and also came to include post-production, digital and visual effects work, that exceeded NZD3 million.
The grant was instituted in the hopes of stimulating economic growth by creating incentive for international productions to be created in New Zealand. Gerry Brownlee expanding on this, said “Attracting large budget film productions here offers wider benefits to the economy, including increased opportunities for New Zealanders as well as tourism benefits from having New Zealand locations shown to an international audience.”
Photo by vancouverfilmschool