United Kingdom: The government of the UK has introduced new measures under the UK and Australia Free Trade Agreement (FTA). The British innovative sector is being promoted by the latest rules to assure its artists are paid fairly when their work is resold in Australia.
Under the FTA new rules are established to protect various forms of art, such as paintings, sculptures, prints, and photographs. These regulations permit UK artists to claim resale royalties every time their work is sold on the professional art market in Australia.
The Artist’s Resale Right (ARR) is an important income source for artists. According to the Alliance for Intellectual Property, British artists gain an average of £5,000 per year in royalties, with over 80 percent of them using their ARR to cover their living costs and art materials. Art sales in Australia exceeded AUS$140 million in 2023, and British artists exported £10 million worth of goods to Australia in 2021.
Greg Hands, the Trade Policy Minister of the UK, stated that, “British artists are renowned the world over, and from today they will be yet another beneficiary of the UK’s post-Brexit free trade agenda. By ensuring that British artists are paid fairly for their work around the world, we are helping to nurture the next generation of Hogarths and Constables, so we can see their work hanging on the walls of global galleries for generations to come.”
Julia Lopez, the UK Creative Industries Minister, commented that, “We will continue to do all we can to maximise the potential of the creative industries, and our creative talent. Thanks to this new Free Trade Agreement, British artists will be fairly rewarded for their efforts, and be able to claim resale royalties in line with the system Down Under. This is just one part of our plan to grow our booming creative industries even further, benefiting talented British artists that are in demand around the world.”
The Australian parliament passed new legislation that entitles UK artists to receive resale royalties equal to the Australian system. This indicates that when artworks are sold commercially for AUS$ 1,000 or more, British artists can now receive 5 percent of the sale price as royalties. Previously, UK artists were not entitled to any royalties when their artwork was resold in Australia.
Moreover, starting in April, the ARR royalties in the UK will be estimated in pounds instead of euros. This shift is implemented post-Brexit to better reflect the UK market and also to lower the expenses for UK businesses when calculating royalty costs.
The UK’s creative initiatives employ 2.4 million people and contribute £125 billion to the economy. In 2022, DACS and ACS allocated over £12 million in royalties to British artists. The UK-Australia FTA eliminated tariffs on all UK exports to Australia, making it easier for British creative experts and young Britons to travel there for work or to explore their creativity.
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