The Federal Government is considering changes to superannuation law that would cost the Australian art market an estimated $100million in sales each year.
If adopted, the Cooper Review recommendations to ban art investments by Self Managed Super Funds (SMSFs) would have a disastrous effect across the whole art industry.
Currently, SMSFs invest an estimated $100million on art in Australia each year. Art galleries estimate that up to 25% of their sales are to SMSFs.
Remove these sales, and the whole art world suffers – artists, suppliers, valuers, dealers and auction houses.
The Federal Government’s Cooper Review of Superannuation has called for a ban on art investment by SMSFs, and for SMSFs to divest all existing art investments within 10 years.
These recommendations are fundamentally flawed, serve no good purpose, and are extremely damaging to the Australian art industry.
TELL COOPER, HANDS OFF ART IN SUPER!
1. Art is a legitimate investment for retirement savings
2. The integrity of these investments is already covered by existing regulations
3. The “unintended consequences” of the Cooper recommendations are disastrous for the Australian art industry.
3 Comments
1 John Anderson wrote:
It is sad to see that Art is seen as an exotic investment when it is in fact a significant cultural practice , the product of which ,should be recognised and valued for its commercial value in exactly the same way as a share portfolio.By including it in a SMSF the investor is supporting an industry that pays taxes through its sales and contributes to Australian society in ways that go beyond simple consumerism.The whole thrust of Coopers logic has the smell of a narrow minded attitude about the nature of art practice and a total underestimation of its importance in presenting Austalia as a cultured nation to world.This proposal threatens all Australian artists and in particular Aboriginal artists right at a time when other industries have been receiving fiscal stimulus in the face of the GFC.As it is most artists are poorly rewarded for their efforts and support the cultural satisfaction of the public without charge. Not only will this worsen this situation it will undercut the art industry which has taken years to establish in this colony. It is a embarassment to think that a Labour Government that sees itself as progressive is even considering it.
2 occandaabek wrote:
why not…
3 Anna Waldmann wrote:
Investing in the arts is as valid or as much of a gamble as investing in shares or in property.
It has however the added benefit of supporting what makes Australia different and exciting: its creativity.
Why target artists? The financial pages of every newspaper are full of distressing stories about major companies going bust and taking with them the savings of thousands of investors. I don’t recall any similar reports about about art investments.
The Cooper review recommendations are not informed by realistic research or an understanding of how the arts sector works. It has however the potential to undermine a sector that has worked hard at becoming highly professional and has been suceessful in establishing its national and international credibility.