Corporate art collections are an established and growing presence among large and global companies such as Deutsche Bank, UBS, Bank of America, Microsoft, Samsung and the like. But what about smaller companies?
As the end of financial year approaches, some art galleries like Sydney’s .M Contemporary are reminding Australian art lovers in business that the purchase and installation of artworks before 30 June 2023 for their workplace may be considered tax deductions.
Next Thursday June 15th from 6 – 8pm Michael Fox, art accountant and the Director of Fox Galleries, will speak at .M Contemporary Gallery, to discuss how art acquisitions impact tax and superannuation approaching the EOFY. This will be followed by a question-and-answer session. The gallery asks that you be in touch should you wish to attend.
You can also watch Michael Fox discuss his interest in art and tax in this interview with David Hunt on Art Hunter here.
Make sure you have checked the eligibility criteria for your business and learn about the bigger picture of an instant asset write-off as described by the Australian Taxation Office. Artwork in this context is suggested to be an investment and depreciating asset.
The ATO says eligible small to medium size businesses (a turnover of less than $500 million per year) may be eligible access this instant asset write-off measure for painting and sculpture artworks which cost less than $150,000.00 if the purchase adheres to the following guidelines;
- Capable of being moved
- Purchased with the dominant purpose of display in a business premise; and
- Not be trading stock.