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 agent acting for the buyer on the resale; or
- if there are no agents, the buyer.
Related Articles
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 ...
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 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 does the scheme affect Art Market Professionals?
There are legal obligations for Art Market Professions which require them to: report qualifying resales of original visual artworks to RRA; and pay to RRA* the resale royalty payable in respect of each qualifying resale. The seller is also jointly & ...
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 ...