supporting artists' professional development
NAVA campaigns and advocates for artists’ rights and the needs of the Australian visual arts sector as a whole. Since its formation in 1983, NAVA has been a powerful force in bringing about policy and legislative change to encourage the growth and development of Australian visual arts and craft.
In 2002 the Australian government proposed the introduction of Non-Commercial Losses (Division 35) legislation, intended to prevent hobby farmers from making illegitimate tax claims. However it became apparent as an unintended consequence, that most artists would be unable to claim their art practice expenses because they would not meet the exemption criteria.
NAVA was one of the peak arts organisations involved in negotiating for an exemption for the arts sector on the basis that the criteria had been drafted to fit the nature of the primary industry and were inappropriate as tests to be applied to arts businesses. Intensive lobbying ensued, including NAVA and other arts industry representatives appearing before a Senate Committee to make the case. As a result the Government compromised by adding an extra provision which allowed artists in business to claim their expenses if they earned less that $40,000 from their non-arts income. In order to achieve at least partial protection for the arts industry from unintended consequences of this legislation, NAVA and other representative arts peak bodies agreed to this compromise, on the understanding that there would be a review of the application of the legislation.
In 2004, at the government’s behest, the Board of Taxation undertook a Post-Implementation Review of the Non-commercial Losses Act to check its quality and effectiveness. NAVA’s submission made the case that artists should be exempted on the grounds that the Act discriminated unfairly against an estimate 15 – 20% of artists, and the pending Tax Public Ruling would provide a more precise instrument for achieving the government’s objectives of distinguishing between professional artists and hobbyists for income tax purposes. However, in 2005, NAVA was informed by the Assistant Treasurer’s adviser that exemption was not granted.
NAVA continues to campaign for this change.
Read NAVA’s submission to the Board of Taxation
Read the Non-Commercial Losses (Division 35) legislation
