In Australia, eligible businesses are able to claim an immediate deduction for the business portion of the cost of an asset in the year the asset is first used or installed ready for use. Currently, this means that eligible businesses are able to claim up to a threshold of $150,000 from eligible art purchases. There is currently no limit to how many pieces of art you can make this claim for.
There are four criteria that need to be met for the instant asset write-off.
The artwork must be
- Tangible
- Capable of being moved
- Purchased with the dominant purpose of display in a business premise
- Not be trading stock
It will not matter if the artwork purchased is new or second-hand. It is important to note that the above criteria do not apply to or include NFTs (non-fungible tokens) to be claimed as an art tax deduction.
*This information has been prepared for informational purposes only, and is not intended to provide, and should not be relied upon for, legal, tax, or financial advice. You should consult your own legal, tax, and financial advisors before engaging in any transaction.