NZ First has pledged to lift the Game Development Sector Rebate to 40 percent and secure Dunedin’s CODE funding ahead of the 7 November vote.
Tamrah News Desk | October 20, 2026
The NZ First video game rebate pledge, announced on 20 October 2026, would double the Game Development Sector Rebate from 20 percent to 40 percent, according to the party’s published statement. Stuff reported that Winston Peters announced the gaming policy, which the party says is meant to keep local talent and gaming studios in New Zealand as Election 2026 approaches.
What the Gaming Policy Would Change
NZ First said it would raise the maximum claim per studio from $3 million to $10 million and lower the claiming threshold from $250,000 to $150,000. The party says smaller gaming studios could then start claiming earlier. Business Scoop, which published the statement in full, shows the annual rebate budget rising from $40 million to $45 million by 2028.
RNZ reported that the party would widen eligibility while making only a modest increase to the yearly budget. The party links the changes to a target of $3 billion in export revenue by 2030 for the video game industry.
Funding Certainty for the Centre of Digital Excellence
NZ First said it would guarantee the Centre of Digital Excellence, known as CODE, its current $5 million a year and lift that to $7 million by 2028. RNZ reported that NZ First helped establish CODE through $10 million from the Provincial Growth Fund during the previous Labor and NZ First coalition. The Ministry of Business, Innovation and Employment says CODE was set up in Dunedin in 2019 as a regional development initiative.
The party says CODE has seen 20 new studios established and calls its approach “sustainable economic development, not a government hand-out.”
How the Game Development Sector Rebate Has Performed
The Game Development Sector Rebate was announced in Budget 2023 with $40 million a year in funding, and NZ On Air administers it. NZ On Air’s year three figures show 43 successful studios, $21.9 million paid out and combined studio revenue of $829 million. GameDev.net reported that full time jobs across supported studios fell from 1,288 to 1,124, though the average studio grew its workforce by 14 percent.
NZ First says the rebate returned $213 million in income tax and PAYE in 2026, or $9.73 for every dollar spent. The party also says Australia is poaching CODE supported talent because of limited rebate settings. These return figures come from the party and are not independently verified.
Reaction and Rival Pledges
The NZ Herald reported that the plan comes even though some of the largest players are highly profitable and owned offshore. The Herald also reported that NZ Game Developers Association director Lance Burgess worked with NZ First on the policy. According to the Herald, the association has long argued that the biggest studios can spend far more than $3 million on a major game.
Labor announced in October 2025 that it would lift the rate to 25 percent, raise the cap to $4.5 million and lower the minimum spend to $200,000.
Will the NZ First Video Game Rebate Become Law?
The measures are campaign commitments and not current government policy. AAP reported that Prime Minister Christopher Luxon set 7 November as the date of the general election. Until then, MBIE lists the current rebate settings as 20 percent, a $3 million annual cap and a $250,000 minimum spend.
FAQs
What is the NZ First video game rebate plan?
The NZ First video game rebate plan would raise the Game Development Sector Rebate from 20 to 40 percent for gaming studios, lift the claim cap to $10 million and fund CODE.
How much would the Game Development Sector Rebate increase under NZ First?
The Game Development Sector Rebate budget would rise from $40 million to $45 million by 2028, and the rebate rate would double, according to NZ First.
What is the Centre of Digital Excellence and how much funding would CODE get?
The Centre of Digital Excellence in Dunedin supports local game developers. NZ First would baseline its $5 million budget and raise it to $7 million by 2028.
How does the NZ First gaming policy compare with Labor’s?
Labor proposed a 25 percent rebate with a $4.5 million cap, while NZ First proposes 40 percent with a $10 million cap for gaming studios.
When is Election 2026 in New Zealand?
Election 2026 will be held on 7 November 2026, according to AAP.
Which gaming studios can claim the video game rebate now?
Studios meeting the $250,000 minimum spend can claim 20 percent, up to $3 million, through NZ On Air. Forty three studios received payments in year three.
