There are two ways you may be able to claim artwork on your tax return:
If you are a small business operating out of a commercial office or home office location, you may be eligible to claim a 100% write-off on artwork worth up to $150,000 per piece. The artwork must have been installed or first used between 12th March 2020 and 30th June 2023. This is a substantial increase to the previous instant write-off threshold which was just $30,000.
If you are not a small business but had to relocate to work at home during COVID-19, you may also be able to claim on artwork. The process and variables differ slightly, but the ATO has created a shortcut to claim the costs of setting up a home office, including claiming artwork costs.
Individual circumstances always apply, so we recommend discussing your particulars with a tax professional.
What are the criteria for the artwork?
In order to claim a tax deduction on artwork purchased for your office, the artwork has to meet four criteria to be eligible for the instant asset write-off. It must be:
- Tangible;
- Capable of being moved;
- Purchased with the dominant purpose of display in a business premise; and
- Not be trading stock.
It won’t matter if your artwork is bought new or second-hand. But it is important to note that the above criteria do not include NFTs (non-fungible tokens) to be claimed as an art tax deduction.
What sort of art should I purchase?
Now that you know how you can claim significant deductions for artwork in the workplace, the challenge is to decide what you want to buy. Art preferences are obviously very subjective, but it’s also good to consider where you will put the artwork and its purpose.
Art can be such a wonderful representation of your organisation’s vision and purpose. It’s also a great opportunity to connect with your employees, clients, or customers.
If you’re unsure about what might work best in your workplace, we can help. We can provide you with mock-ups of your preferred artwork to place in your office space.
If you’re an interior designer or architect, all trade and industry professionals receive a 20% discount on any artwork purchased.
