Last Chance: Can Claim Art as a Tax Deduction

⚠️ Important update for 2025:The 2025 Federal Budget has confirmed that the temporary instant asset write-off boost for eligible small businesses will end on 30 June 2025. If you’ve been considering purchasing artwork for your business, now is the time to act. After this date, the deduction threshold may return to a lower limit or change entirely.

As always, check with your accountant to confirm your eligibility and ensure the artwork meets the ATO’s criteria.

As an artist, I often talk about the power of art to transform spaces. But did you know that original artwork can also offer financial benefits for small businesses? That’s right—under the instant asset write-off scheme, eligible Australian businesses can claim artwork as a tax deduction.

Let’s break it down.

✅ The Basics

If you run a small business, and the artwork is displayed in a business environment (like your office, studio, meeting space, or reception area), it can be considered a legitimate business expense. To be eligible, the artwork must:

• Be tangible (e.g. painting, sculpture, photograph),

• Be created by a professional artist,

• Cost less than the current instant asset write-off threshold at the time of purchase,

• Be used or displayed in your business.

🎨 Why Original Art?

Aside from being tax-effective, original art adds character, warmth, and professionalism to your business. It helps communicate your values and can create an atmosphere that aligns with your brand. Whether you're a therapist wanting to create a calming vibe, or a start-up founder aiming to impress clients, art can do some heavy lifting for your space.

📌 How It Works

When you buy an eligible artwork from a professional artist or gallery, and display it in your workplace, you can write off the full cost as an instant asset (provided it’s under the ATO’s current threshold). This is different from claiming depreciation over several years.

As always, it’s best to chat with your accountant to ensure everything’s in line with ATO guidelines.

🧾 Is My Business Eligible for the Tax Deduction?

If you’re a small to medium-sized business with an aggregated turnover under $10 million, you may be eligible to claim artwork under the Instant Asset Write-off scheme (check the current threshold with your accountant).

To qualify, the artwork must meet the ATO’s criteria. It should be:

• A tangible item (like a painting, print, sculpture, or photograph),

• Purchased principally for display in your business premises,

• Capable of being moved, and

• Not considered trading stock.

⚠️ Note: Digital art like NFTs (non-fungible tokens) don’t qualify under this scheme.

💡 Use It before it ends

If you’ve been thinking about buying a piece of art, the lead-up to the end of financial year is the perfect time. It’s a win-win: you support a local artist and potentially receive a tax deduction.

And if you're keen on commissioning something custom, I’d love to chat.

Disclaimer: The information provided above is general in nature and does not constitute professional financial advice. I recommend consulting a qualified financial advisor or accountant to confirm your eligibility and ensure this advice is right for your individual circumstances.