Small business can now claim a 100% tax deduction on art purchases up to the value of $20,000.
As reported in the Australian Newspaper and the Sydney Morning Herald and following confirmation on air yesterday via 2GB Sydney by the Minister for Social Services, Scott Morrison, art purchases up to a value of $20,000 are now 100% tax deductible for Australian small businesses.
The measure was announced in the 2015 Budget, allowing businesses with an annual turnover of less than $2million to immediately deduct the full amount of asset purchases up to a value of $20,000. The deduction is not capped on the number of allowable asset purchases. For example, a small business owner may choose to acquire 5 paintings of $20,000 each, so a potential deduction of $100,000 appears allowable.
According to the Sydney Morning Herald article, “A deduction for purchasing art work, as long as it is for business purposes, appears to be within the rules.”
An exceptional work of art or a company art collection allows a small business to make a bold statement. Not only can the right work of fine art enhance the walls of your office for the benefit of staff and clients, if well chosen and following the right advice, fine art will prove to be an exceptional appreciating asset for your business. Piermarq has a strong history of providing Australian businesses, both large and small, with exceptional advice and guidance as how to build and manage fine art within their business structure. With this new legislation Australian small businesses will gain a significant advantage to build a tax efficient, performing asset base that looks great on the wall.
Through our unique, tailored approach Piermarq allows business owners to navigate the Australian art market with ease. Exceptional artworks by proven performers will provide the best opportunity for long term, highly competitive investment outcomes, while impressing stakeholders at a 100% tax deduction.
To learn about opportunities for your business in the art market and view works presently available under $20,000 contact Piermarq. For further information related to the suitability of this budget measure for your small business, consult with your accountant.