EOFY instant artwork write-off scheme ― Is it time to update your collection?

Tax time is just around the corner, and we’re excited to share that you may be able to claim art through the Australian government instant write-off scheme. Eligible small to medium businesses have the opportunity to claim an immediate, 100% tax deduction for artworks via the instant asset write-off scheme. This tax benefit ends on 30 June 2023, making now the perfect time to consider purchasing artwork.

What is the Instant Artwork Write-Off Scheme?

The Instant Artwork Write-Off scheme allows eligible businesses to claim a 100% tax deduction for the purchase of artworks that are tangible, purchased principally for a business premise, capable of being moved, and not considered trading stock. This means that businesses can claim the full cost of the artwork as a tax deduction in the year it was purchased, rather than depreciating it over several years.

Who is Eligible?

Small to medium size business owners with an aggregated annual turnover of less than $500 million qualify for the scheme. It doesn’t matter if your office is in your home or a multi-floor office tower, the ATO classifies artwork as both an investment and a depreciating asset when bought by and for businesses. Be sure to check your eligibility with your personal tax accountant.

How Much Can I Claim?

Business owners can claim up to $150,000 per artwork, with no limit to how many pieces of art you can claim. This means that you can claim the full cost of an artwork valued up to $150,000 as a tax deduction, and you can purchase as many artworks as you like, so long as they meet the eligibility criteria.

Why Invest in Artwork?

Investing in artwork can provide a range of benefits for your business, including:

– Enhancing the appearance of your workspace: Artwork can add colour and interest to your workspace, creating a more pleasant and stimulating environment for employees and visitors.

– Supporting local artists: By purchasing artworks from local artists, you can support the creative industries in your area and help to build a vibrant and diverse arts community.

– Demonstrating your business values: Displaying artwork that aligns with your business values can help to communicate your brand identity and create a positive impression of your business among clients, customers, and stakeholders.

– Providing a potential financial return: While artwork should not be viewed solely as an investment, it is possible that the value of the artwork may appreciate over time, potentially providing a financial return on your investment.

 

What to do now?

Need ideas?  Browse our website to view our stockroom or call the Gallery (03) 6223 7895.  We also offer a personalized consultancy service, where we can tailor artworks to suit your space without even having to leave your office desk.  There is still time to co-ordinate this prior to June 30.

We look forward to hearing from you.  Happy selecting!