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Small Business Tax Deduction on Art

Updated: Oct 27, 2023

The end of the financial year is fast approaching, so make sure your small business is not missing out on taking advantage of an instant tax dedication on any new artworks purchased that cost $20,000 or less.

As reported in the Sydney Morning Herald last week. Click HERE for the full article.

Last year from 12 May 2015, small businesses with aggregate annual turnover of less than $2 million are immediately able to deduct any new assets purchased, provided the assets cost less than $20,000.

Subject to the passage of legislation, the Australian government has also proposed that the $2 million threshold will increase to $10 million from the 1 July 2016. This will apply for assets acquired until 30 June 2017.

The $20,000 limit applies to each individual item. Small businesses can apply this $20,000 rule to as many individual items as they wish. For example, a small business owner may choose to acquire 5 paintings of $20,000 each, for a potential deduction of $100,000.

A piece of fine art can have great impact for a small business. In addition to core decorative purposes, business of all sizes utilize fine art for reasons ranging from motivating staff, projecting style and prestige to clients or even addressing their cultural views. Whether it be just one piece or a collection of art for your company, the right artworks will enhance the walls of your office for the benefit of both staff and clients.

As with any art purchase, if chosen well and if you have followed the right advice, it should prove to be a solid investment for any business.

For more information contact one of our experienced art consultants on 1300 55 74 73.

You should seek professional advice to determine whether you are able to claim a deduction.

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