Understanding the Australian Resale Act and the Resale Royalty Scheme
Royalties for artists
Under the Resale Royalty Right For Visual Artists Act of 2009, Australian artists receive royalties on certain resales of their work. A third party organisation is appointed by the government to collect royalties due to artists.
The Resale Royalty scheme requires the seller, or the seller’s agent, to report all commercial resales for $1,000 or more, whether or not a royalty is payable.
About the artists resale royalty scheme
The artists’ resale royalty scheme started on 9 June 2010.
Under the scheme:
- commercial resales of artworks for $1,000 or more must be reported; and
- a 5% royalty is payable on some resales.
The Australian government has appointed Copyright Agency to manage the scheme.
Key features of the scheme:
- it applies to resales of existing as well as new works;
- it applies to a range of original artworks, including limited edition prints authorised by the artist;
- it does not apply to a private sale from one individual to another;
- all resales for $1,000 or more must be reported;
- a royalty is not payable on the first change of hands after 9 June;
- a royalty is not payable on resales for under $1,000;
- the scheme will be extended to artworks from countries that have similar schemes.