Art & Tax
CLAIMING ARTWORK AT TAX TIME
Featuring 30 First Peoples artists and collectives, Shadow Spirit is a remarkable exhibition that takes place in the derelict upper level of Flinders Street Station. Curated by Kimberley Moulton, a Yorta Yorta woman, for Rising 2023, this groundbreaking blockbuster exhibition serves as both the physical and spiritual centre of the festival. Until July 30, visitors to Shadow Spirit will be immersed in the rich tapestry of Ancestral knowledge systems, paying homage to First Peoples' interconnectedness with the spirit world and the intrinsic links between place, people, and Country. With a harmonious blend of works from esteemed Elders and emerging artists, this ambitious national show will offer audiences a deeply nuanced experience of First Peoples' cultures. Shadow Spirit amplifies the exceptional contemporary creativity of First Peoples art in this country and presents an opportunity to share it with the people of Melbourne and the world.
There are two ways you may be able to claim artwork on your tax return:
If you are a small business operating out of a commercial office or home office location, you may be eligible to claim a 100% write-off on artwork worth up to $150,000 per piece. The artwork must have been installed or first used between 12th March 2020 and 30th June 2023. This is a substantial increase to the previous instant write-off threshold which was just $30,000.
If you are not a small business but had to relocate to work at home during COVID-19, you may also be able to claim on artwork. The process and variables differ slightly, but the ATO has created a shortcut to claim the costs of setting up a home office, including claiming artwork costs.
Individual circumstances always apply, so we recommend discussing your particulars with a tax professional.
What are the criteria for the artwork?
In order to claim a tax deduction on artwork purchased for your office, the artwork has to meet four criteria to be eligible for the instant asset write-off. It must be:
Tangible;
Capable of being moved;
Purchased with the dominant purpose of display in a business premise; and
Not be trading stock.
It won’t matter if your artwork is bought new or second-hand. But it is important to note that the above criteria do not include NFTs (non-fungible tokens) to be claimed as an art tax deduction.
What sort of art should I purchase?
Now that you know how you can claim significant deductions for artwork in the workplace, the challenge is to decide what you want to buy. Art preferences are obviously very subjective, but it’s also good to consider where you will put the artwork and its purpose.
Art can be such a wonderful representation of your organisation’s vision and purpose. It’s also a great opportunity to connect with your employees, clients, or customers.
If you’re unsure about what might work best in your workplace, we can help. We can provide you with mock-ups of your preferred artwork to place in your office space.
If you’re an interior designer or architect, all trade and industry professionals receive a 20% discount on any artwork purchased.
