100% Instant deduction on Works up to $20,000 for This Financial Year

The Australian Government's $20,000 instant asset write-off allows small businesses to claim the full cost of eligible assets including original artworks as an immediate tax deduction in the year of purchase.

That means an $18,000 painting bought for your boardroom this month is fully deductible in your 2025–26 tax return. Not depreciated over years. Gone from your taxable income now.

The deduction applies per artwork with no cap on the number of works you buy. Three paintings at $15,000 each means three separate full deductions — $45,000 claimed in a single financial year.

And unlike previous years, this isn't a deadline to panic about. The Government confirmed in the May 2026 Budget that the $20,000 instant asset write-off will be made permanent from 1 July 2026. But purchasing before 30 June means the deduction applies to this financial year's tax return — so if you're ready to buy, now is the time.

The Art Tax Deduction in Action

David runs a small architecture firm in Sydney's CBD. He'd had his eye on a Ken Knight for months. A large work for his boardroom. $18,000. He'd almost talked himself out of it.

When he came in to buy it, we noticed he was purchasing through his business. We mentioned, almost in passing, that under the Government's instant asset write-off, he could claim the entire purchase price as a tax deduction this financial year. He stopped. Asked us to say it again.

That day, we delivered and hung the painting in his office. The full $18,000 came off his tax bill. He called a few days later to let us know that our information was confirmed by his accountant and of course to tell us how magnificent he found the work in his space.

We've been following this deduction since it was first introduced. We know it well. When a version of the write-off was announced over 10 years ago, we were among the first to report it, covering it in our weekly newsletter before most of the financial press had picked it up. What followed was unexpected: calls from journalists at the Financial Review and the Sydney Morning Herald wanting to know if it was real. One financial editor pushed back publicly, insisting the deduction didn't apply to artworks. It did. The ATO confirmed it. 

We were right.

We mention this because it matters: the rules around art and tax are genuinely misunderstood, even by people who should know better. When we tell you a deduction applies, it's because we've done the work - but of course, check with your accountant.

Q&A: Tax advice as prepared by an independent, registered taxation consultant

What Qualifies and Who Is Eligible

Does this apply to artworks? 

Yes. Original artworks are depreciable assets under Australian tax law. Provided the work is displayed or used in your business premises, it qualifies for the instant asset write-off.

Who can claim it?

Any business owner with an ABN and aggregated annual turnover under $10 million. That includes architects and lawyers, accountants and financial planners, engineers, medical practitioners, retailers, tradies and franchisees. If you run your own business, you're almost certainly eligible.

Is there a limit on how many works I can buy?

No. The $20,000 threshold applies per artwork, not per business. You can purchase as many works as you like — each one under $20,000 qualifies for its own full deduction.

Do new and second-hand artworks both qualify? Yes. The write-off covers both new and previously owned artworks, provided they are purchased and installed or first used in your business before 30 June 2026.

What if the artwork costs more than $20,000? Works over $20,000 don't qualify for the instant write-off but can still be added to your small business depreciation pool and claimed over time. Talk to your accountant about what works best for your situation.

This information has been prepared with reference to advice from an independent registered taxation consultant. Wentworth Galleries supports the application of this deduction for art purchases, but buyers should always seek their own professional taxation advice.

Why Art Is One of the Smartest Business Purchases You Can Make

We've placed work in law firms, medical practices, architectural studios, financial planning offices and boardrooms across Australia for 30 years. The response is always the same: people notice, people respond, and the space is transformed.

Original Australian art signals taste, success and cultural investment. It starts conversations. It makes an impression that a new desk or a fresh coat of paint never will. It's an upgrade that is instant and without mess. On top of all that, artwork will often appreciate in value.

With a 100% tax deduction available on purchases up to $20,000 there has never been a better or more financially compelling time to invest in art for your business.

Browse the Collection online or Come and See Us

Our collection spans a wide range of Australian contemporary painting and Aboriginal art and sculpture. Works that suit boardrooms, reception areas, meeting rooms and open-plan offices alike. There's even cause to consider it for your home office but check with your financial adviser on this one to be sure.

Visit us in Sydney or Brisbane, call (02) 9223-1700, or email the gallery. We offer home trial on artworks throughout greater Sydney and ship Australia wide.

"Buying art for your office or business has never been better value."