Save Super Art calls on the Rudd Government to reject the Cooper Review recommendations which are fundamentally flawed and are already creating damaging uncertainty within the Australian art market. The campaign addresses the three basic reasons why the Cooper Review's recommendations are wrong:
1. Art is a legitimate investment asset for retirement savings.
2. The regulatory and compliance issues with super funds holding artworks have already been addressed.
3. The "unintended consequences" of the Cooper Review recommendations are disastrous for the Australian art industry.
Anecdotally the Cooper review has had an immediate impact on the art market since the recommendations were made public a little over a month ago. The situation is being compounded by the imminent commencement of the resale royalty scheme on June 9. Galleries and consultants are reporting to Lowensteins lost sales caused by the sheer uncertainty of the regulations. Clients who were committed to purchasing artworks with their super funds before June 9 say reasonably that they can no longer complete these sales. The situation has not been helped by the absence of any government comment on the impact the Cooper recommendations will have on the arts sector.
Save Super Art has now sent letters to Jeremy Cooper, the Prime Minister, the Treasurer, the Minister for the Arts, the Minister for Superannuation, the Leader of the Opposition and the shadow ministers for treasury, the arts and superannuation.
A website www.savesuperart.org.au is being established to facilitate the campaign. Fund contributors will be acknowledged with presentation of their logos and links to their websites. With the presentation of the final Cooper Review to be delivered by June 30 this is a vital issue for the Australian visual art industry.
To receive a Campaign Brief and further information on Save Super Art please email me at info@savesuperart.org.au
FOOTNOTE: Just to reinforce the importance of this issue we have also received preliminary legal opinion that sales of artworks from superannuation funds to their members on or after June 9 will count as the first transfer of ownership under the resale royalty legislation. Why? Because it appears that superannuation funds are not an excluded private class as they are not defined as "individuals" under the Act. This would not be an issue if super funds sold their artwork collections at the time of member retirement but under the Cooper recommendation these artworks will have to be divested by 2020, which will now potentially carry an extra penalty of 5%. Yet one more "unintended consequence" for the arts industry to contemplate.
