As an art market professional over many years, I am stunned that the Government is not allowing art as an appropriate investment. This goes against all international research and trends.
Indeed, art investment has proven as successful as any other asset class in terms of capital accumulation. Three separate sources have shown that art investment generates more than 10% per annum over the long run which is as good as, if not better, than share market performance.
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31 Comments
1 Mark Seares wrote:
I am a property valuer and real estate agent of some 35 years standing. I’ve seen the introduction of compulsory superannuation and tried to manage lifetime decisions whilst Governments continually shift the goal-posts.
Now Mr Cooper wants to dictate what I can invest in.
Well I’ve studied the markets Mr Cooper; I’ve lost a heap following the advice of stockbrokers who helped me “balance” my SMSF with equities like Babcock & Brown and others which no longer exist. I’ve never lost like that in the art market. In fact I’m well in front at present, despite the lack of your ASIC regulations, but even ASIC must understand the fundamentals of supply & demand.
You propose to kill a major sector of the art market and force that sector to dump all it’s investment in a five year time frame, with a view to “protecting” us? My investment plan fails miserably under this proposal. It needs to be thoroughly reconsidered.
Yours Sincerely,
Mark Seares
2 Jason Hartcup wrote:
Count our vote
The arts need all the support and backing backing they can get and we
as artists need people to buy our work or we will be less productive.
A world without the use of imagination and the generation of culture
is to be avoided at all cost.
This country can provide an ideal environment for creativity and self-
expression.
Jason HARTCUP BA MFA
3 Josiane Smith wrote:
Art is one of the measures of fending off dystopia.
4 Ken Martin wrote:
I don’t believe we have to look as far back as the Great Depression when stockbrokers were jumping out of windows onto Wall Street to know how speculative other investments can be and for Mr Cooper to point this bone at artists shows a lack of understanding of the reality of art investment. As a full time practicing sculptor of 30 years, I see the Cooper report recommendations – banning art investment in SMS funds as devastating should they come to fruition. The impact on the financial survival of practicing artists, art galleries & the diverse range of art related businesses, would be an enormous retrograde step, resulting in destruction of art related businesses , unemployment and vandalism of our emerging culture. The existing system enhances artists potential to be self sufficient tax paying members of the community , supporting a larger industry.
Sincerely Ken Martin
5 Ken Wong 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.
6 Dennis Ropar wrote:
The art market is tough enough as it is without making it harder for artists to sell their work. I live solely off my art sales with a young family to support and I am a voter and a taxpayer!
7 Maudie Palmer wrote:
I wish to support your campaign to overturn the Cooper recommendations to ban Art Works from SMSFs. These recommendations if they should be adopted will have a disastrous impact upon the Art Industry.
Yours Maudie Palmer AO
8 Trevor Fleming 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.
9 Belinda Fox 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.
10 Romeo Viglino 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.
11 Brad Shrimpton 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 Michael Pulsford 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 Steve Cooper 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.
14 Anthony Curtis wrote:
Hello,
I am a visual artist who regularly exhibits in commercial and public galleries in Australia.
While I understand the concerns the Cooper Review have found with art forming part of a DIY super fund, I feel that a ban on art in DIY funds will have a devastating effect on the careers and income of emerging and mid-career artists in Australia.
It is a fact of life that many individuals collect art as an investment and sometimes speculate in the art market, as they do in shares or property.
The percentage of funds invested in art and collectibles by DIY super funds is very small compared to traditional investments such as shares or property.
Therefore, I really question the regulatory benefit of banning the inclusion of art or collectibles in DIY super funds.
I urge you to reconsider this proposed change in the interest of maintaining the strength of Australian visual art and culture.
Thank you
15 Lyne Marshall wrote:
If the recommendations of the Cooper Review go ahead more galleries will close, more artists will suffer and Australia will go into a cultural void. Art is part of making our history. I ask the Australian Government to take this country forwards, not backwards, and preserve our culture through continuing to allow art to be a Super investment. The art market is already suffering. To then flood it with art works no longer allowed as Super will not serve anybody but cause financial hardship for everybody across the spectrum, from the investor across to the artist and onwards to many other areas.
16 David Grant wrote:
As a taxpayer, art collector and voter I urge you to overturn the Cooper recommendations to ban Art works from SMSFs
17 dean vella wrote:
As a professional exhibiting artist of over twenty years and also having been a director in a major australian commercial fine art gallery for over 15 years has given me a sound insight of the australian art market. I myself have amassed for my self managed super fund a substantial collection of art over the years.All of which have been self sourced and subjective to my own preferences. I can honestly say that the art component of my super fund has steadily added value to my fund.Artwork, unlike shares that once purchased you have no control of their value have increased their value remarkably well. Property has also over the past decade returned good increases in value however comes with a high maintanance cost. Artwork once purchased cost nothing to keep and if sold privately, nothing to sell. All this stands as sound proof of the high quality of art as an investment.
My time involved in the operations of a commercial gallery, which promoted a larger variety of australian and international artist both living and deceased and as an artist myself, has given me the knowledge that 30% plus of the sales in commercial galleries were to self managed super funds. By removing this ,I believe ,would not only be devastating to the survival of commercial galleries throughout this country but seriously harm the careers of emerging artist and the income of established artist in this country. It would also have flow on effects for the art economy which would emerge with time due to the lack of investor confidence that would be generated by the removal of government endorsement of art as a valued commodity in a major part of australian super funds. For all of this I believe this in a serious mistake to undermine the security of the value of australin art.
18 Jacqui Durrant wrote:
I support Save Super Art for many reasons stated in comments above, but most of all I am concerned for the impact the Cooper reccommendations will have on indigenous art sales, and therefore the indigenous communities of this country. We have taken enough from them already.
19 Madeleine wrote:
Thank you, Michael, well said!
20 Virginia Coventry wrote:
I support the SAVE SUPER ART campaign against the Cooper Review recommendations banning art investments in Self Managed Super Funds.
21 Marc Jarnet wrote:
As a professional Engineer,
A professional Artist
a private investor.
I have three children who I encourage to work and support artists and support themselves through investments and not rely on existing dubious financial structures, I request you ignore the coopers and similar findings and advise your government to spend our tax money more wisely in the future, as equally your views and actions will reflect on your election performances in the near future.
22 Megan Evans wrote:
I am writing to strongly express my disappointment about the Cooper Report and the effects it will inevitably have on the art market and the livelihoods of artists if it is allowed to be passed in the Senate.
I am a professional artist who has had the privilege of working in my trade for over 25 years. I have not accumulated great wealth but have managed to survive and in some way contribute to the Australian culture through my art. If the proposed changes recommended in the ill informed Cooper Report go ahead not only my career but the career and livelihoods of many struggling Australian artists will be severely effected and as a result the culture of Australia will be diminished.
Please pass on my point of view to those who may be able to affect change.
Yours sincerely
Dr. Megan Evans
23 Dean Vella wrote:
Dear Mr Cooper
As a professional exhibiting artist of over twenty years and also having been a director in a major Australian commercial fine art gallery for over 15 years has given me a sound insight of the Australian art market. I myself have amassed for my self managed super fund a substantial collection of art over the years. All of which have been self sourced and subjective to my own preferences. I can honestly say that the art component of my super fund has steadily added value to my fund. Artwork, unlike shares that once purchased you have no control of their value have increased their value remarkably well. Property has also over the past decade returned good increases in value however comes with a high maintenance cost. Artwork once purchased cost nothing to keep and if sold privately, nothing to sell. All this stands as sound proof of the high quality of art as an investment.
My time involved in the operations of a commercial gallery, which promoted a larger variety of Australian and international artist both living and deceased and as an artist myself, has given me the knowledge that 30% plus of the sales in commercial galleries were to self managed super funds. By removing this ,I believe ,would not only be devastating to the survival of commercial galleries throughout this country but seriously harm the careers of emerging artist and the income of established artist in this country. It would also have flow on effects for the art economy which would emerge with time due to the lack of investor confidence that would be generated by the removal of government endorsement of art as a valued commodity in a major part of Australian super funds. For all of this I believe this is a serious mistake to undermine the security of the value of Australian art.
24 Liam 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.
25 Hans Sip wrote:
The Cooper report carries extremely ill conceived recommendations and is a disaster in the making for both galleries supporting aboriginal artists and the artists themselves. As you are aware I am a passionate collector and have devoted very considerable funds out of my superannuation fund in support of this industry.
I have effectively ceased buying since the recommendations were first mooted. They are even more draconian than I expected them to be. The 5 years divestment period will create a flood onto the market that will devalue art in general and heaven knows how much aboriginal art is held in super funds throughout Australia. Artists that have spent their working lives building their careers with their community centres and private galleries will experience a major setback.
I am in contact with many private galleries throughout Australia specializing in aboriginal art and those that have not already closed down over the last couple of years are hanging on by a thread. The Cooper Report may spell their death knell.
26 Karen Gray wrote:
Since the announcement of this short sighted report we are already seeing a slump in Australian art sales and as an artist I am certainly feeling the effects. And what a draconian recommendation to FORCE the sale of artworks as investment through Self Funded Super.
This will have a devastating effect on the Australian Art market! Why single out the Arts? Mr Cooper, don’t you like Art???
27 Suzanne Fegan 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.
28 Rae Walker wrote:
I agree with Charles Nodrum’s comments. I support SAVE SUPER ART. To make a living in the Australian art industry is extremely tough.
The art world needs encouragement not more hurdles.
They allow the investment in SHARES in Self Managed Super Funds don’t they!
29 Jana Gerovska wrote:
HANDS OFF ART IN SUPER!
30 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 investmant 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.
31 Jillian Holst wrote:
I have been an art advisor and registered art valuer for over thirty years.
During this time I have personally witnessed, with thoughtful and judicial purchases, how my clients have financially benefited in their investment in art.
One salient fact seems to have been totally ignored in the rather questionable arguments against art as an investment in SMSF’s.
The people who own their own funds are also the custodians of the assets within their SMSF. They are responsible to ensure growth..why? Because it guarantees comfort in their retirement/old age.
WHY would anybody jeopardise that?