About the Cultural Gifts Program
A pamphlet with this information is available from the Cultural Gifts Program officers (contacts on the right of the page)
Tax incentives for culturally significant gifts to Australia’s public collections
The Cultural Gifts Program provides tax incentives to encourage gifts of culturally significant items from private collections to public art galleries, museums, libraries and archives.
Gifts can range from paintings, books, sculptures, manuscripts and personal papers to jewellery, ceramics, technological, mechanical, scientific and social history collections.
The Department of the Environment, Water, Heritage and the Arts administers the program in accordance with the gift provisions of the income tax law and with the advice of an expert committee, the Committee on Taxation Incentives for the Arts.
Tax incentives
- The general rule is that the average of the GST inclusive market values specified in valuations from approved valuers for the gift is fully tax deductible, with some exceptions (see overleaf).
- Donors can elect to spread the deduction over up to five income years.
- Gifts are exempt from capital gains tax.
Donors can also claim a tax deduction for the costs of obtaining valuations specifically for this program.
Other benefits
Donors can take pride in the knowledge that their gifts contribute to the development of Australia’s public collections. The donations also help to preserve Australia’s cultural heritage for the benefit of present and future generations.
How to make a donation
Contacting the institution
The first step is to establish that the public collecting institution of your choice is eligible to participate in the Cultural Gifts Program and is willing to accept your gift for its collection. A list of eligible institutions is available on this website.
Organising the valuations
You will need two substantiated valuations of the GST inclusive market value of your gift at the time of donation. Ask the institution to refer you to valuers approved for the program and to help you arrange these valuations.
Valuations should be undertaken within 90 days of the date of the donation, to reflect the current market value.
Once the gift has been valued, the institution will arrange for you to complete a Certificate of Donation form which describes the gift and transfers ownership from you to the institution.
Assessment and endorsement of gift
The institution will forward the gift documentation, including valuations, to the Committee on Taxation Incentives for the Arts. The Committee’s role is to ensure that valuations reflect current market value and that your gift meets the program requirements.
Once your gift is endorsed, the gift documentation will be returned to you for your tax records. Unless otherwise advised by the Committee or the Australian Taxation Office, you may then claim the average of the valuations as a tax deduction, for the financial year in which the gift was formally accepted by the institution (that is, the date of donation as recorded on the Certificate of Donation) or elect to apportion your deduction over five years.
Other important points
Apportionment Election Form
If you wish to apportion your deduction, you will need to complete an Apportionment Election Form, available from the Department or from this website. You may vary this election at any time prior to lodging your tax return for a particular income year but may not do so retrospectively.
Exceptions to full market value deduction for gifts
The Tax Office may vary or disallow the deductible amount when:
- the gift is given with conditions that prevent or delay the institution having clear title, custody and control of it, or which involve benefits to the donor, other than the allowable tax concessions;
- the gift was made within 12 months of being acquired by the donor (other than by inheritance), or acquired specifically for the purpose of donating it. The allowable deduction in this case will be restricted to the purchase price or the market value, whichever is the lesser amount; or
- an artist donates their own work, or a dealer donates items which form part of their trading stock.
Bequests are not tax deductible
Gifts bequeathed under a will or made by executors of deceased estates are not tax deductible and do not qualify for the program.
Contacts
The Secretariat
Committee on Taxation Incentives for the Arts
GPO Box 787
Canberra ACT 2601
Tel: 02 6275 9651
Fax: 02 6275 9664
Email: cgp.mail@environment.gov.au
