News and Events
Tax Break on Artwork Purchases Up to 50% Tax Break for the Purchase of New Artworks
We'd like to encourage all of our clients who have an ABN and a turnover under $2 million, to take advantage of the Government's 50% tax break for the purchase of new artworks. Under The Nation Building and Jobs Plan, the Government is offering a Small Business and General Business Tax Break for the purchase of depreciable assets. This tax break is in addition to the allowable annual deduction for depreciation that the business is entitled to claim for an eligible asset.

The ATO has accepted that works of art are eligible as depreciable assets under the scheme as long as they meet the following criteria:

1. The artwork needs to be new, purchased from a professional artist registered with an ABN or their gallery.

2. It must be portable and physically tangible.

3. It needs to cost a minimum of $1,000.

4. Businesses with less than $2 million annual turnover must have bought the asset between 13 December 2008 and 31 December 2009, and use or install the asset between 13 December 2008 and 31 December 2010 in order to qualify for the 50% tax break.

5. The work must be purchased primarily for business use, and cannot be sold within the first year or used as trading stock.

These are the main criteria that need to be met however we would also encourage you to familiarise yourself with the ATO guidelines which can be viewed on their website.

For more information please see the ATO website at www.ato.gov.au
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