30 Jul 2008

Royalty bill 'a new tax on art'

2:34 pm on 30 July 2008

Parliament has been told that a proposed art resale royalty is a new tax on art that will result in important works being sold in Australia rather than New Zealand.

The Government Administration Select Committee is considering a bill to ensure artists benefit from the rising value of their work by introducing a 5% royalty on resales of more than $500.

Auction house owner John Mowbray told the committee on Wednesday that the bill is unworkable because it is uneconomical to try to find unknown artists in order to pay royalties as low as $25.

Mr Mowbray described the bill as a new tax on art that would lead to important works being sold at auction in Australia.