Australian Government Announces Resale Royalty Scheme for Visual Artists

Sally Wilson of Davies Collison Cave reports on a new royalty scheme to be introduced for Australian visual artists as a result of legislation to be enacted by the Federal Government. The legislation has priority status for the first session of Parliament early next year, with the scheme to be implemented by 1 July 2009.

According to Sally Wilson of DCC, the scheme will grant visual artists a right to a five percent (5%) royalty payment on secondary sales of their works. The right will trigger on resales exceeding $1,000 for the artist’s lifetime plus 70 years following their death. Liability for payment will be shared between the parties to the sale. An agency to be appointed by government tender will collect and distribute the royalty payments.

The scheme has implications for all visual artists, buyers and sellers of art and intermediaries in the art market, including auction houses and commercial galleries. Sally Wilson points out that some critics of resale royalty schemes imply that, by nature, the arrangements benefit only a handful of established artists whose works are in demand and demand high prices. However, whilst the introduction of the scheme is unlikely to halt sales of works by important Australian artists, it may also provide an incentive for some collectors to look more widely to new works by emerging artists.

DCC – Australian Government Announces Resale Royalty Scheme for Visual Artists