Cooper Super makes it even harder on artists

The final report on the operation of Australia's Superannuation System (the Cooper Review) was delivered to the Government on 30 June 2010 and released on 5 July 2010 on the website www.supersystemreview.gov.au. The Government has said it will now consider the final recommendations of the report before providing its response and will be consulting the industry on the key proposals.

NAVA’s concern is that the 'Final Report Part 2: Recommendation Packages’ do not acknowledge the positive contribution of SMSF investments to the art industry, nor do they acknowledge the issues raised by arts industry experts about the long-term deleterious consequences of these recommendations.

The report continues to recommend that “the acquisition of collectables (including art)and personal use assets by SMSF trustees be prohibited" and that "SMSFs that own collectables(including art)or personal use assets be provided a five year transition period, in which to convert to a SAF or, alternatively, dispose of those assets. No acquisitions of collectables and personal use assets would be permissible during the transition period;".

This means that not only is the report recommending that art investment by SMSFs be prohibited causing a considerable loss of income to artists and their support infrastructure, but also that all the SMSFs currently with art investments in their portfolio will only have 5 years (instead of the initially considered 10 years) to divest themselves of these artworks. This change from 10 years to 5 years is likely to cause even greater instability in the art market than anticipated and have worse ramifications for the art industry and artist’s incomes.

NAVA will continue to oppose the recommendations and try to persuade the government not to follow them.

For the Save Super Art Campaign response please click here.