However, for domestic producers working with budgets between 4 and 8 million, the benefits are mostly indirect. More international work may boost jobs and post production capacity, yet local filmmakers still face tighter rules under the domestic rebate, including the 25 percent Above the Line (ATL) cap. Without alignment between international and domestic incentives, Kiwi producers remain at a disadvantage when trying to raise finance and attach marketable talent.

The 40 percent domestic rebate was designed to support local filmmaking, but this cap limits how much can go to key creatives such as writers, directors, producers and lead cast. Introduced to manage risk, it now restricts opportunity and makes it harder to raise finance or attach talent.

Independent films rely on international partners and private investment. When ATL spending is capped, it limits both. Removing the ATL cap would be one key step toward aligning international and domestic settings, creating a stronger and more balanced ecosystem that sustains jobs, supports growth, and gives Kiwi producers the flexibility to build, not just survive.