EOFY
2025: How to Save Tax and Uplift Your Workspace with Original Art

The instant asset write off is a business tax incentive that allows eligible small businesses to immediately deduct the cost of assets used in the course of business, up to a value of $20,000 per asset. The asset must be installed and ready for use by 30 June 2025. It’s part of the simplified depreciation rules designed to ease financial pressure on small businesses.

However, before making any purchase with the intention of claiming it under this scheme, it’s essential to consult with your accountant. They can help you confirm whether your intended artwork purchase and its business use meet all the eligibility requirements set out by the ATO. This ensures your investment is not only inspiring but also compliant.

To be eligible for the instant asset write off, your business must have an aggregated turnover of less than $10 million, be actively operating and using simplified depreciation rules, and purchase assets that are used or installed ready for business use before 30 June 2025.

The eligibility is generous and inclusive, covering a wide range of businesses from sole traders and partnerships to companies and trusts so long as they meet the turnover threshold and operate legitimately. Again, speak with your accountant to confirm that your business structure and asset use qualify under the ATO rules.

This is where things get exciting for both art lovers and savvy business owners. Under the ATO’s guidelines, artwork can be considered a depreciating asset if it’s tangible, has a limited effective life, and is used in the business.

Examples of potentially qualifying art include original oil paintings, limited edition prints, photographs, sculptures, and mixed media works.

To potentially claim art as a business expense, it must be used to improve or support business operations. This generally means it should be displayed in a commercial space such as a reception area, office wall, meeting room, or even a retail setting. Art kept in a private residence or held purely for personal enjoyment or investment purposes does not qualify. Your accountant can advise you on whether the specific use and setting of the artwork satisfies business use criteria.

Beyond the tax considerations, art has a profound impact on workplace culture and employee well being. Numerous studies have shown that incorporating visual art in workspaces leads to increased productivity, improved mood and mental health, enhanced creativity, better employee retention, and positive impressions among clients and visitors.

Imagine walking into an office that features a stunning original oil painting of a serene Australian landscape. It instantly calms the senses and sparks a conversation. Or a vibrant limited edition print in a conference room that energises the space and inspires ideas. Art breaks the monotony of blank walls and infuses character and energy into an environment that’s otherwise purely functional.

In fact, according to research conducted by Exeter University, people working in spaces enriched with art and plants were 17% more productive than those in lean spaces. Art is not just decoration, it’s a tool for transformation.

The current $20,000 instant asset write off limit will end on 30 June 2025. After this date, the threshold is set to significantly drop to just $1,000 per asset, which severely limits your ability to deduct higher value purchases like artwork. That’s why acting before EOFY 2025 or at the latest, by June 2025 is critical if you want to make the most of this opportunity.

Let’s say you buy an original oil painting for $8,000 and a limited edition print for $6,000 for your office. If both are purchased and installed for business use before the cut off, and confirmed by your accountant as deductible, you may be able to deduct the entire $14,000 as a business expense in this financial year.

That’s real money saved, and a lasting benefit to your business environment. From July 2025 onward, such purchases would not qualify for immediate write off and would instead need to be depreciated over several years, reducing the immediate impact on your tax bill.

While this article provides general information, it is not financial or tax advice. You should always consult with your accountant before purchasing art with the intention of claiming it as a business deduction.

If your accountant confirms that your purchase is eligible, you’ll want to maintain clear documentation to support your claim. This includes a tax invoice showing the cost and GST (if applicable), payment receipts, a Certificate of Authenticity for the artwork, and photographs showing the artwork displayed in a business context.

If you're running your business from a home office, the artwork must be displayed in a dedicated business area to qualify. Shared or mixed use areas (like a dining room doubling as an office) may complicate your claim.

By purchasing artwork through this scheme, you’re not just doing something positive for your own workspace, you’re also supporting the Australian arts community. Many professional artists, including those working in original oil painting or fine art printing, run small businesses themselves.

When you buy directly from them or from small galleries, you're helping sustain creative livelihoods and keeping art alive in your local community. That’s why this opportunity is truly a win win. You may benefit from a tax deductible art purchase that enhances your professional space, and an artist or art business gains support to continue doing what they love.

Choosing the right art is a creative and personal decision. Consider artwork that reflects your brand values. A law firm may opt for dignified, serene landscapes, while a creative agency might choose bold, dynamic abstracts.

Think about your space, measure your walls and consider lighting. Large oil paintings can create a strong statement, while limited edition prints can bring cohesion to different rooms.

You might also get input from your team. Inviting staff to help choose artwork can boost engagement and make them feel more invested in their work environment.

Many artists are happy to recommend pieces based on your needs or even offer digital mock ups to show how the work will look in your space.

There’s still time to take advantage of the $20,000 write off, but time is running out. Start planning your purchase now so you don’t miss out. Choose pieces that inspire, motivate, and reflect the values of your business.

Original oil paintings and limited edition prints are not only beautiful but also serve a practical function in enhancing productivity, morale, and client experience. They tell your business story in a way that words or furniture cannot.

And remember, this generous tax benefit will reduce dramatically next year, so the best time to act is before EOFY 2025.

The 100% deduction for eligible artwork purchases is a rare and inspiring opportunity. It allows you to invest in your business environment, uplift your team, impress your clients, and support Australian artists all at once.

With the current $20,000 threshold set to drop to $1,000 from 1 July 2025, now is the time to explore your options. Speak to your accountant, explore artists whose work resonates with your business, and make a decision that pays off both financially and emotionally.

Because when it comes to tax deductible art, it’s not just about numbers, it’s about creating a space that reflects who you are and where you're going.