When is a resale royalty payable?
An "eligible artist" (or their successor) has a right to be paid a resale royalty each time there is a “qualifying resale” of an “original visual artwork” by that artist (provided the resale right had not “expired” at the time of resale)
Use the flowchart in the Criteria section of the Homepage to apply this test in 4 Steps.
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How will the scheme work for galleries who often buy at auction to re-sell? Will the royalty be payable twice?
A royalty is payable on each resale. Who is liable in each instance is answered by section 17 of the Act. The seller is always liable, and generally their agent will be jointly and severally liable. Generally a buyer won’t be liable unless no agent ...
How is the resale value calculated?
The resale royalty payable is calculated at 5% of the “resale value” of the qualifying resale (section 16). Section 10 says that “resale value” means: “the value of the consideration given for the visual artwork under the contract for resale” which ...
How much is the resale royalty payment?
The amount is the same for both eligible artists and successors, a 5% royalty will be collected for eligible artists each time there is a qualifying resale of their original visual artwork. The collection and distribution of the payment is managed by ...
What is the process for claiming an unpaid resale royalty?
RRA will periodically inspect and audit published auction sale results to monitor compliance with the Act and Regulations. However, because we rely on art market professionals and other stakeholders in the Scheme to notify us of resale payments that ...
Who is liable to pay the resale royalty?
The following persons are jointly and severally liable to pay the 5% resale royalty to RRA (section 17, of the Act) : The seller, and either the agent acting for the seller on the resale (usually the AMP); or if the seller does not have an agent, the ...