We publish an issue of Resale Royalty eNews three or four times a year, with news about developments for the resale royalty scheme. We email more than 2,500 recipients, who include artists, art market professionals and others interested in the resale royalty scheme.
If you would like to subscribe, contact us.
In this edition
Reporting and the resale royalty scheme
Although awareness of the resale royalty scheme is high, there are a few misconceptions when it comes to the details. Some surround what needs to be reported for resale royalty purposes. Judy Grady, the key contact at Copyright Agency for galleries, auction houses and art dealers, shares some of the questions she is frequently asked.
What do I report?
The most frequent question is: ‘what is required to be reported?’ The short answer is that you need to report all commercial resales that have occurred since commencement of the scheme on June 9, 2010.
As simple as that sounds, this raises further questions such as:
- Does the first resale after 8 June 2010 need to be reported?
Yes, all resales need to be reported. If it is the first transfer of ownership after June 8, 2010, no royalty will be payable. This will be identified through the acquisition question that you answer on the resale report: 'Seller acquired work post 8th June 2010? Yes or No.
- Do resales where the sales price is less than $1000 (including GST) need to be reported?
Yes, but please do talk to Copyright Agency about simplified reporting for these sales.
- Do primary sales need to be reported?
No, primary sales do not need to be reported, but you can report them if you wish. We have made provision for this in the reporting system but it is not required. In response to requests from artists, dealers, galleries and auction houses, we have made provisions for this in the reporting system but it is not a legislated requirement.
Defining Consignment, Primary and Resale
We also receive questions regarding consignment and what defines a primary sale. For resale royalty, we advise thinking in terms of the transfer of title of the artwork. For example, if the first (primary) sale is made through an agent, such as a gallery or dealer, it is still a primary sale if title passes directly from the artist to the buyer. In cases where the gallery or dealer purchases the work from the artist and title passes to them, a resale then occurs when they sell the work to a buyer. In this case the resale would be reported to Copyright Agency and if all other eligibility criteria were met, a royalty would be due. In these two scenarios the gallery or dealer will need to be mindful of how these transactions are documented so that it is clear whether or not they are acting as an agent and whether or not they have taken on title of any artwork. Copyright Agency can provide some guidance on this.
Making reporting easier
Please report resales online at www.resaleroyalty.org.au. After logging in, you will be taken to your dashboard. Click on the ‘Report Resales’ tab at the top of the screen. You can report by completing an online form, or uploading a spreadsheet. Both the spreadsheet and the online form detail the information required to report a resale. If your reporting volumes are low, or if you wish to report resales as they occur, using the online form will be easiest. For larger volumes of resales, you may find it easier to use the spreadsheet.
A few tips for filling in the online form:
- if providing dimensions do not type ‘cm’ in the field. You just need to enter the numbers
- when providing the sale price, do not type the ‘$’ sign. You only need enter the numbers
- make sure you tick the box that warrants that all the information you have provided is correct
- to submit the report you need to first click ‘Update’ and then click ‘Submit
- after clicking 'Update', the details of the resales will appear at the base of the page, providing you with the opportunity to check the details you have entered before clicking 'Submit'
For further information on simplified reporting for resales under $1,000, or any aspect of reporting, please contact Judy on 1800 066 844or email@example.com.
A special note for auction houses: Australian Art Sales Digest provides a resale royalty reporting service for subscribers. Your sales data will be downloaded into the resale report. You simply collect the report from the Australian Art Sales Digest website, complete it by entering a yes or no in the column that asks the acquisition question ‘Seller Acquired Work Post 8th June 2010’ and then submit your report to us.
Copyright Agency's Cultural Fund and the visual arts
Copyright Agency sets aside 1.5% of licensing revenue for its Cultural Fund to reinvest in Australia’s vibrant arts and cultural community. Since its inception, the grants have been allocated to a wide cross-section of projects in the visual arts and publishing industries. The priority area of funding is ‘supporting innovation in the Australian creative industries to develop local and foreign markets for Australian works.’
Here are some of the visual arts-related projects that have recently received funding:
- Victorian Indigenous Art Awards
With a Cultural Fund grant of $13,000, Copyright Agency sponsors cash prizes for the winners and the runners-up in two categories of the Awards: works on paper and three dimensional works.
The Cultural Fund is providing $60,000 to ArtLink magazine over three years. The funding will go towards an annual Indigenous edition of the magazine, giving Indigenous artists a voice and to document change and development in the sector. An adjunct to this project is the $11,250 the Cultural Fund has provided for ArtLink to translate its first Indigenous edition into Chinese to increase the profile of Indigenous art to this growing market for cultural works.
- Cultural Partnerships Australia
Cultural Partnerships Australia, based at Red Gate Gallery in Beijing have been granted $60,000 from the Cultural Fund. With this funding, they will establish a curatorial exchange program which will invite young Chinese curators to meet and work with established and emerging Indigenous artist, curators and gallery directors in Australia. Their aim is to develop Chinese appreciation of Australian art, Indigenous culture and Australian curatorial practices.
- Tom Bass Sculpture Studio School
The Tom Bass Sculpture Studio School received $10,000 from the Cultural Fund to run an emerging sculptor program, providing artistic and professional development and training to support an emerging sculptor over a twelve month period.
- National Association for the Visual Arts (NAVA)
Through the Cultural Fund, Copyright Agency has granted NAVA $149,700 over a period of three years to develop and deliver a distance education package of online courses for visual artists, craftspeople and designers with the aim of assisting them build their careers. NAVA’s desire is to provide practical information for artists from urban, regional and remote Australia.
In addition to the main Cultural Fund grants, there is also up to $150,000 allocated each year to the Creative Industries Career Fund to support individual Australian creators and those involved in the visual arts and publishing industries to assist them in their career development. Applicants can apply for grants of up to $5,000 to undertake training, mentorship or other activities that will enhance their professional skills.
In October 2011, Copyright Agency launched a short film to showcase some of the remarkable individuals and projects that have benefited from Cultural Fund grants. Click here
to view the video on YouTube.
For further information about the Cultural Fund, the projects it supports and details on how to apply for grants, visit Copyright Agency’s website.