Time is running out for businesses to claim 100% tax deduction on art
As you no doubt already know, eligible Australian businesses can currently claim a 100% tax deduction in the current financial year on artwork purchased for business uses, regardless of the price. This includes where the artwork is purchased for display around the office as part of the fitout.
What you may not know is that this amazing benefit is soon ending, with time running out for most businesses to claim a generous tax deduction.
As of 30th June 2023 the Temporary Full Expensing incentive comes to an end. Introduced at the end of 2020 as part of the Government’s COVID-19 economic recovery measures, Temporary Full Expensing allows all Australian businesses with a turnover of less than AUD$5bn to instantly deduct the full cost of their newly purchased assets, including art. Since then KAB Gallery has assisted several large Australian businesses to bolster their art collection by way of this amazing economic incentive, along with countless small and medium businesses as well.
However just like all the Government’s COVID measures, Temporary Full Expensing is now coming to an end. This means that after 30th June 2023, medium and large Australian businesses (ie those with a turnover of greater than $10m) will no longer be eligible to claim this fantastic 100% tax deduction on art.
What’s more, as it currently stands small businesses (ie those with a turnover of less than $10m) will only be able to claim the older-style of instant asset write-off after then. This meant from 1st July 2023 small businesses can only claim a 100% tax deduction on artworks costing less than $1000. While the Government may change its mind in the May 2023 budget, everything currently points to this remaining the case after 1st July. At this point in time it’s clear that businesses have a lot of potential tax deductions to lose after 30th June 2023.
KAB Gallery has so many fantastic artworks to complement any businesses, and we’re available right now to assist. Call us on 1300 78 7773 or email [email protected] to book your exclusive FREE consultation with our Director and Curator Kerry-Anne Blanket to discuss buying art for your business before the end of June. Consultations can take place in either our Sydney or Terrigal galleries, on the phone, or virtually via video.