The Artist Resale Royalty Scheme
This December the Artist Resale Royalty scheme comes into effect, with the purpose of ensuring that visual artists receive a share of the profits when their artworks are resold on the secondary market, bringing Aotearoa-New Zealand in line with common international practice.
We’ve put together this overview of the Scheme to help you better understand what it includes and what it means for buying and selling artwork through Webb’s.
What is the Artist Resale Royalty scheme?
From 1 December 2024, Resale Royalties Aotearoa (RRA) will collect and distribute royalties under the Artist Resale Royalty Scheme for eligible original artworks. This scheme will enable eligible visual artists (or their successors) to receive a royalty payment when their artwork is resold on the secondary art market.
Who/what does this cover?
The Scheme includes original artworks by eligible artists that sell for a hammer price of $2,000 or more. RRA will work to distribute the royalties to artists and their successors and also work towards establishing a cultural fund for any unclaimed royalties.
The Scheme is reciprocal between New Zealand and other countries with an artist resale royalty scheme. This means that artists in each country are treated as rights holders under the other country’s royalty scheme, and the collection agency or agencies in each country will collect royalties on behalf of artists in the other.
Who collects the money?
RRA is a non-for-profit organisation established to collect, hold and distribute royalties under the Artist Resale Royalty scheme in accordance with the Act, and the Regulations. It is a wholly-owned subsidiary of Copyright Licensing New Zealand (CLNZ), who were appointed by the Minister for arts, culture, and heritage as the collection agency for the purposes of the Act. Of the 5% collected; 4% goes to eligible artists and estates, 1% is retained by RRA to fund its collection, distribution, and other functions.
What does this impact me as a vendor/buyer through Webb’s?
Webb’s is pleased to continue to support artists on the secondary market and to continue to see New Zealanders engage with art in Aotearoa.
For those buying art through Webb’s, the scheme has no impact on purchase—the hammer price and buyer’s premium is applied as normal. For vendors, there will now be an additional fee of 5% of the hammer price, which will be deducted from sale proceeds. The details of this fee will outlined in the vendor contract.
We understand that you may still have questions or concerns around the Scheme, so for further information, or to discuss the consignment and sale of artworks under the new Resale Royalty Scheme, please get in touch.
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