A new government tax incentive has been the catalyst for recent record sales at Morpeth Gallery as investors spend up big on art.
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During a weekend in March the gallery sold $253,750.00 in original paintings and on a recent April weekend, $41,500 in art works were sold.
Gallery owner Trevor Richards said a new tax incentive has been the sweetener.
"Now the Federal Government has increased the tax incentive from $20,000 to $30,000 for any one painting and is allowing companies who have an annual turnover of up to $50 million to participate," Mr Richards said.
"Over the last month Morpeth Gallery has seen record sales in investment art as people buy up big before the likely change of Government in Canberra later this month," Mr Richards said.
"Customers who run a business and who have an ABN number are buying art to take advantage of the Federal Governments 100% tax right off for paintings purchased through their business - up to $30,000 per painting," he said.
"They are able to hang these paintings in their office or place of business adding to the ambience of the office and increasing the quality of the decor," Mr Richards said.
Others are divesting away from housing as an investment because of the downturn in house prices
- Trevor Richards
"Many customers are concerned that this benefit will end if labor is elected.
"Other people are spending up big on investment art because their share dividends will no longer be tax free if Labor is in power whilst others are divesting away from housing as an investment.
"This is because of the downturn in house prices and the ending of negative gearing imminent if there is a change of government."
Mr Richards said all these things are adding up to a search for alternative investments and art gives them healthy returns as well as something beautiful to look at.
Morpeth Gallery has paintings by artists who are widely published and marketed nationally and internationally.
"This means the gallery's art is being exposed to a wide cross section of the community not just people who frequent art galleries, thus increasing the value of the originals," Mr Richards said.
A painting by Australian artist John McCartin titled Lazy Afternoon, recently sold to a Melbourne customer for $33,000.
