Further confirming the idea that much of the Australian art market–especially the Indigenous art market–is based upon buying for investment, the Australian government moved to squelch suggestions that self-managed pensions would be excluded from buying and holding art. The proposed reforms had already caused panic within the Australian art market and effected sales, according to The Australian:
Art sales had weakened immediately after the Cooper review last month recommended people with SMSFs be forced to sell art and collectibles within five years or convert their fund into one regulated by the Australian Prudential Regulation Authority. This week, Sotheby’s had disappointing sales at its indigenous art auction, selling only 42 per cent of works offered. Industry lobbyists campaigned hard against the Cooper recommendations, saying the changes would wipe out 15 to 20 per cent of all sales. […]
Financial Services Minister Chris Bowen said rules for storing assets would be tightened to prevent people using SMSFs from buying collectibles and displaying them in their home or using other eligible assets that are supposed to be investments, such as classic cars or luxury boats.
Labor promises art investment won’t be excluded from super funds (The Australian)