Report On Resale Royalty For Visual Artists Bill 2008 Released

by Mary Swire, Tax-News.com, Hong Kong

23 February 2009

On 20 February 2009, the report of Australia's House Standing Committee on Climate Change, Water, Environment and the Arts on the Resale Royalty for Visual Artists Bill 2008 was released.

The Bill entitles artists to a 5% royalty each time their work is resold. There are similar schemes in other countries, including the United Kingdom and all other members of the European Union.

Clause 11 of the Bill excludes the first resale after the legislation comes into force. In the course of public hearings before the Committee, officers from the Department of the Environment, Water, Heritage and the Arts (DEWHA) said that clause 11 resulted from legal advice DEWHA had received relating to provisions in the Australian Constitution.

The Committee had before it advice obtained by the Arts Law Centre of Australia that the Bill, with clause 11 omitted, would meet with all requirements of the Constitution.

Further to this, the Committee recommended that the Minister for the Environment, Water, Heritage and the Arts seek further legal advice about the necessity for clause 11.

Lastly, the Committee also recommended that the Bill be amended so that the royalty is only collected by the organization that is appointed and monitored by the government, but that the option for an artists to forgo the royalty on a case by case basis remains.

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