$150,000 of Art, 100% Deductible: The Small Business Tax Deduction

As restrictions ease throughout Australia and offices once again become frequented, coming back to a productive work space has never felt so important. Under the small business tax allowance, purchasing art for your business is 100% tax deductible. What better time to re-energise the workplace?

Paintings by Kat Las on Bluethumb

Offices, receptions, boardrooms – they all count! Pictured here is a stunning seascape by Kat Las

What’s so special about this year’s write-off?

Following a recent budget stimulus announcement, the threshold of the Instant Asset Write-off Scheme is set to soar from $30,000 to $150,000. What’s more, the deadline for making any claims is usually fixed as the end of the financial year in June. In response to the Covid-19 pandemic, this deadline has recently been extended a further six months, giving a small business a better chance to acquire and install assets. So, you can now claim back up to $150,000 spent on artwork for your small business before the extended deadline of 31st December 2020.

This abstract by Dinah Wakefield is the perfect piece for a shared space

How do I know if my business is eligible for the tax deduction?

Small to medium-sized businesses with an annual turnover of less than $500 million qualify for the Instant Asset Write-off scheme. The Australian Taxation Office has stated that an artwork is eligible for tax deduction if it is:

  • Tangible
  • Purchased principally for a small to medium-sized business premise
  • Capable of being moved
  • Not be trading stock.

The ATO considers artworks as an investment and depreciating assets when bought by and for businesses. This makes purchasing art for your workspace under the Instant Asset Write-off scheme 100% tax deductible! Following the Budget Stimulus Package announced by the Prime Minister, there’s no limit to the number of artworks costing less than $150,000 to claim a tax deduction at the end of the financial year.

Liss Kamp prints in Aveo Newstead - Bluethumb's largest commercial project.

Why stop at one? There’s no limit to the amount of artworks you can claim a tax deduction from! Featured: Series by Liss Kamp

Sounds good! How do I start?

So, the real question here is: what artworks will you get for your business? Head over to our blog on choosing office art to kickstart a brief, or contact our complimentary art advisory for customised wisdom from the professionals.

This photograph by Tim Allen was part of a recent trade project

Get started with our team for a curation to suit your office needs. We can take care of framing, transportation and hanging. Say goodbye to bare walls, and hello to workplace inspo!

Reflect, Reset, Emerge: Mia Laing on Unprecedented Times

Leave a Comment

Your email address will not be published. Required fields are marked *