Those living in the Melbourne area have a chance tomorrow to directly ask Minister for the Arts Peter Garrett whether the Federal Government will rule out the Cooper recommendations to ban artworks from SMSFs.
He will be addressing the University of Melbourne Symposium at the Elisabeth Murdoch Lecture Theatre at 10.10am. There will be an opportunity for audience questions from 10.40am to 11.00am.
In contrast to Peter Garrett’s undecided stance the Liberal Party have made it very clear that they will rule out the Cooper proposals. Senator Ciobo, Shadow Minister for the Arts last week stated this intent in his media release “For Pete’s sake, save art from Labor’s super axe”, which can be viewed at the below link:
For Petes sake save art from Labors super axe
If Garrett does not understand how serious the issue of uncertainty created by Cooper is destabillising the arts industry, Sydney dealer Dennis Savill today disclosed that since the recommendations were made public two months ago he has only purchased one artwork. During a normal period at this time of year he would normally have purchased 40 paintings.
Brisbane artist and gallery owner Michael Eather, owner of Fireworks Gallery, has sent us his own thoughts on the double-headed hydra that is resale royalties and Cooper. See below “The Perfect Storm”.
Finally, please keep sending your emails of support to Save Super Art www.savesuperart.org.au. We are also now on Facebook and twitter.
30 Comments
1 Andrew Crellin wrote:
It’s unfortunate to say the least that it won’t be Mr Cooper himself, nor any of the other Cooper Review panellists that is making themselves available to answer public questions about this issue. That there was no public debate or consultation at all about the principles and assumptions underlying Cooper’s decision is a disgrace. We can only hope common sense prevails.
2 Richard Gray wrote:
Dear Mr Cooper, Government Ministers and Opposition Spokespeople
I support the SAVE SUPER ART campaign against the Cooper Review recommendations banning art investments in Self Managed Super Funds. The recommendations are fundamentally flawed, serve no good purpose, are already creating damaging uncertainty in the Australian art market, and, if implemented, would create disastrous “unintended consequences” for the Australian art industry.
3 Emma Walker wrote:
Dear Mr Cooper, Government Ministers and Opposition Spokespeople
I support the SAVE SUPER ART campaign against the Cooper Review recommendations banning art investments in Self Managed Super Funds. The recommendations are fundamentally flawed, serve no good purpose, are already creating damaging uncertainty in the Australian art market, and, if implemented, would create disastrous “unintended consequences” for the Australian art industry.
4 Michael Nagy wrote:
The artworks I accumulated in my super fund , by living Australian artists, have appreciated more than the stock market or housing market they are legitimate investments and supporting a significant Australian industry.
5 Sonia Ropar wrote:
I am a labour voter, but I will be voting Liberal at the upcoming Federal election if Peter Garrett goes ahead with these Cooper proposals.
6 Andrew Crellin wrote:
My name is Andrew Crellin, I am a dealer in rare coins in WA and have been following your blog since I became aware of it a few weeks ago.
I wanted to send a message of support for your efforts, I expect if there was no significant reaction to this issue it would have been accepted out of hand by now – let’s hope there’s some possibility that the recommendations can be amended such that SMSF trustees are not unduly affected by this ludicrous process.
Much as you did in your “oppressive and loathsome” post, after hearing Cooper interviewed on ABC radio last week, I also attempted to get my head around the scope of the absurd presumptions and principles the Review Panel was operating on – it took me half a day to deconstruct all of their statements, however once that was done it was then simple to refute each of them.
I’ve posted part of these on my own (numismatic) blog:
http://www.sterlingcurrency.com.au/articles/cooper-review-self-managed-superannuation-what-it-may-mean-australias-rare-coin-market
Don’t hesitate to let me know if you’d like copies of my own notes on Cooper’s logic, I’ll be happy to send them through. They may not contain anything earth-shattering, however you can rest assured that there are like-minded individuals right across the country that are in your corner on this issue.
All the best, let’s hope common sense prevails.
7 Gina Kalabishis wrote:
Art creates our culture, our Australian artists are our greatest cultural Asset.
8 Andrew Morris wrote:
It seems incongruous that the Cooper Review panel has recommended that ‘Collectables/Personal Use Assets (C&PUA)’ will not be available to trustees of self managed superannuation funds as an asset class from 5 years after legislation is enacted.
Collectables (including works of art) currently form less than 0.1% of all assets held by self managed superannuation funds in Australia; therefore this recommendation is an overreaction and overkill. The Cooper Review was clearly misinformed, or worse, not informed to the extent it had an obligation to be.
Trustees of self managed superannuation funds should have available to them the widest possible suite of investment/asset choices that comply with existing legislation and are in accordance with each fund’s written Investment Strategy. Trustees are responsible for the investment choices they make; that choice which should not be infringed beyond the status quo.
A bizarre outcome of removing the ability of trustees to invest in ‘C&PUA’ is that the investment choices they will have going forward, will be limited to other asset classes that have proved extremely volatile, certainly in recent years. Many trustees/members have experienced permanent reductions in their superannuation for listed share investments held within self managed super, especially those in Pension phase who have had to sell devalued listed shares to fund their ongoing pension withdrawals. Removing ‘C&PUA’ as an asset choice may in actual fact exacerbate that negative outcome for many funds going forward.
It is conceded that informed expertise is required by those that invest in ‘C&PUA via their self managed super funds, however those that do are subject to annual independent audit to ensure compliance with the law/s. Trustees who invest in ‘C&PUA’ seek out expertise from a myriad of specialists located over Australia (who will all be negatively impacted if this recommendation become law). What evidence is there of breaches of legislation? Perhaps this is really just a speculative aversion to ‘C&PUA’ without the Cooper Review Panel having facts (or worse, the Panel was clearly not willing to concede the facts from submissions received).
Rare Australian Coins and Banknotes are a classical example of ‘C&PUA’ held within self managed superannuation funds that have experienced 10-15% per annum compounding returns in recent years, without the potential downside risk as listed shares during the same period.
The fact that taxpayers can invest in ‘C&PUA’ outside of superannuation is hardly a reason to ban them inside of self managed superannuation. That is nonsensical!
If this recommendation is legislated into law, it is envisaged that many businesses will close and employees across Australia will be made redundant from various businesses who sell ‘C&PUA’, or who are allied to those that do.
The indigenous arts communities will also be adversely and severely affected by such a change, given self managed superannuation funds have been one of their greatest their sponsors to date.
This recommendation sounds like the proverbial use of a ‘sledge hammer to crack a peanut’, for no net gain for the ultimate retirement of superannuation fund members; more likely the complete opposite will occur. What incredibly poor ill-conceived public policy.
9 Andrew Morris wrote:
As a financial adviser, I have a client in the Australian Rare Banknote market who has advised me he has experienced a $1 million reduction in his business turnover, mostly as a result of this proposed change. Trustees of self managed superannuation funds have stopped investing. This proposed legislation is already negatively impacting upon Australian businesses and their employees.
10 Matt wrote:
A friend of mine recently sold a painting for $70,000 that he purchased in 2006 for $38,000. He did so through his super fund which prompted me to look into self managed funds and investment in fine art. I was amazed and buoyed by the statistics particularly as I lost a bundle in 2008 share crash. I have recently purchased some artworks for my super fund and have already had a positive return on one – against the flow in this economic climate!
The Cooper review smacks of a government trying to prop up the economy with forced investment into the Australian share market. Any good financial planner will tell you that diversity is the key. Diversity does not equal splitting my superannuation across different sectors of the stock market.
Clearly Mr Cooper has no idea of the intrinsic value of art, but let’s hope that he can conduct some further research so he can accurately assess the commercial value of this strong and legitimate investment area.
11 John Sheehan wrote:
Dear Mr Cooper, Government Ministers and Opposition Spokespeople
I support the SAVE SUPER ART campaign against the Cooper Review recommendations banning art investments in Self Managed Super Funds. The recommendations are fundamentally flawed, serve no good purpose, are already creating damaging uncertainty in the Australian art market, and, if implemented, would create disastrous “unintended consequences” for the Australian art industry.
12 Kristen Potts wrote:
Dear Mr Cooper, Government Ministers and Opposition Spokespeople
I support the SAVE SUPER ART campaign against the Cooper Review recommendations banning art investments in Self Managed Super Funds. The recommendations are fundamentally flawed, serve no good purpose, are already creating damaging uncertainty in the Australian art market, and, if implemented, would create disastrous “unintended consequences” for the Australian art industry.
13 Patricia A Barbaro wrote:
Are we again robbing the young artistic and creative talents of the younger generation by attempting to penalise every avenue through which this instinct may be developed.
Has the stolen generation taught us nothing but” throw away” everything including politicians. Is anything precious anymore?
14 Paul Cavell wrote:
Other “unintended serious consequences” to the Australian art market include a major threat to art supply businesses, litho and etching press makers, picture framers, paper makers art couriers paint and ink makers, charcoal makers and many more related enterprises.
15 Dagmar Cyrulla wrote:
I believe this is a short term view to revenue raising. Perhaps the government should consider the increased unemployment benefits that it will need to pay, once the art industry loses its support through Superannuation investment portfolios.
One of the wonderful things about visiting a country is to engage with it’s art and culture, if we (the government) don’t nurture ” the arts”, we are in danger of losing a huge Australian asset. The freedom for the public to buy art with their superannuation has seen a great many more art buyers, possibly a group that are not in a position to spend money on art until they retire are able to do so, therefore supporting the arts. I urge them to reconsider their recommendation.
16 Brian Paxton wrote:
Dear Mr Cooper, Government Ministers and Opposition Spokespeople
I support the SAVE SUPER ART campaign against the Cooper Review recommendations banning art investments in Self Managed Super Funds. The recommendations are fundamentally flawed, serve no good purpose, are already creating damaging uncertainty in the Australian art market, and, if implemented, would create disastrous “unintended consequences” for the Australian art industry.
17 Will Zhao wrote:
You are destroying the Art industry.
18 Kristin Headlam wrote:
Dear Mr Cooper, Government Ministers and Opposition Spokespeople
I support the SAVE SUPER ART campaign against the Cooper Review recommendations banning art investments in Self Managed Super Funds. The recommendations are fundamentally flawed, serve no good purpose, are already creating damaging uncertainty in the Australian art market, and, if implemented, would create disastrous “unintended consequences” for the Australian art industry.
19 Sharon wrote:
Dear Mr Cooper, Government Ministers and Opposition Spokespeople
I support the SAVE SUPER ART campaign against the Cooper Review recommendations banning art investments in Self Managed Super Funds. The recommendations are fundamentally flawed, serve no good purpose, are already creating damaging uncertainty in the Australian art market, and, if implemented, would create disastrous “unintended consequences” for the Australian art industry.
20 Allan Cross wrote:
In addition to all the other comments, now we are being restricted in our ability to diversify our investment types. Why exactly is it that governments that want us to be self funded in our retirement, keep interfering with how we save to do that.
21 Noreen McErlain wrote:
Dear Mr Cooper, Government Ministers and Opposition Spokespeople
I support the SAVE SUPER ART campaign against the Cooper Review recommendations banning art investments in Self Managed Super Funds. The recommendations are fundamentally flawed, serve no good purpose, are already creating damaging uncertainty in the Australian art market, and, if implemented, would create disastrous “unintended consequences” for the Australian art industry.
22 Boris Blankleider wrote:
It is good that the Government recognises the importance of investment in mining and industry, to the material wealth of Australia. But as custodians of the future welfare and happiness of the nation, the Government must also recognise the importance of investment in art, to the cultural and spiritual wealth of Australia.
The current proposal to ban art investment in Self Managed Super Funds must be rejected for it will undermine the art industry.
As John F. Kennedy said in his State of the Union Address, January 14, 1963, “This country cannot afford to be materially rich, and spiritually poor”.
23 Raymond Benson wrote:
Dear Mr Cooper, Government Ministers and Opposition Spokespeople
I support the SAVE SUPER ART campaign against the Cooper Review recommendations banning art investments in Self Managed Super Funds. The recommendations are fundamentally flawed, serve no good purpose, are already creating damaging uncertainty in the Australian art market, and, if implemented, would create disastrous “unintended consequences” for the Australian art industry.
24 Greg Nazvanov wrote:
Art is now listed on Chinese Stock Exchange:
http://www.artinfo.com/news/story/35237/vogue-for-treating-art-as-stocks-comes-to-china/
Is the government still not convinced that it is a good investment?
25 Jenny Riegels wrote:
Dear Mr Cooper, Government Ministers and Opposition Spokespeople
I support the SAVE SUPER ART campaign against the Cooper Review recommendations banning art investments in Self Managed Super Funds. The recommendations are fundamentally flawed, serve no good purpose, are already creating damaging uncertainty in the Australian art market, and, if implemented, would create disastrous “unintended consequences” for the Australian art industry.
26 Kay Benson wrote:
Hands off my super – I choose the way I invest my superannuation. I do not need government to put their finger in the pie – this is always the thin edge of the wedge. I am a responsible investor of a self managed fund not in need of interference.
27 Aniela Kos wrote:
ART is one of the most viable and enjoyable lawful investments, save Super ART and we help Australian artists to live and culture to survive!
28 Catherine Pilgrim wrote:
Dear Mr Cooper, Government Ministers and Opposition Spokespeople
I support the SAVE SUPER ART campaign against the Cooper Review recommendations banning art investments in Self Managed Super Funds. The recommendations are fundamentally flawed, serve no good purpose, are already creating damaging uncertainty in the Australian art market, and, if implemented, would create disastrous “unintended consequences” for the Australian art industry.
29 Adam Coates wrote:
Dear Mr Cooper, Government Ministers and Opposition Spokespeople
I support the SAVE SUPER ART campaign against the Cooper Review recommendations banning art investments in Self Managed Super Funds. The recommendations are fundamentally flawed, serve no good purpose, are already creating damaging uncertainty in the Australian art market, and, if implemented, would create disastrous “unintended consequences” for the Australian art industry.
30 Lesley Kehoe wrote:
Dear Mr Cooper, Government Ministers and Opposition Spokespeople
I support the SAVE SUPER ART campaign against the Cooper Review recommendations banning art investments in Self Managed Super Funds. The recommendations are fundamentally flawed, serve no good purpose, are already creating damaging uncertainty in the Australian art market, and, if implemented, would create disastrous “unintended consequences” for the Australian art industry.