EXPLANATORY STATEMENT
Issued by the Minister for the Arts
Resale Royalty Right for Visual Artists Act 2009
Resale Royalty Right for Visual Artists Regulations 2011
Resale Royalty Right for Visual Artists (Format of Notice of Commercial Resale) Determination (No. 1) 2012
This explanatory statement relates to the Resale Royalty Right for Visual Artists (Format of Notice of Commercial Resale) Determination (No. 1) 2012 (the Instrument) made pursuant to the Resale Royalty Right for Visual Artists Regulations 2011 (the RRRVA Regulations).
Legislative Authority
Regulation 5 of the RRRVA Regulations provides that the Minister may, by legislative instrument, determine a format of notice of commercial resale for section 28 of the Resale Royalty Right for Visual Artists Act 2009 (the Act).
Statement of Compatibility with Human Rights
The Instrument does not engage any of the applicable rights or freedoms. The Instrument is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.
Consultation
Consultation has been undertaken with Copyright Agency Limited, the collecting society appointed under section 35 of the Act, to ensure that the Instrument will fit within their current systems as well as to clarify and streamline reporting processes following feedback from art market professionals. Formal public consultation has not been undertaken as it is considered that the Instrument will have minimal impact on those persons giving notice of a commercial resale of an artwork.
Purpose and operation of the Instrument
The purpose of the Instrument is to determine a format of notice of commercial resale which must be given by a seller of an artwork under section 28 of the Act. A notice of commercial resale must include sufficient detail to allow the collecting society to work out if a royalty is payable and, if so, how much and who is liable to pay the royalty (paragraph 28(2)(c) of the Act).
A format of notice of commercial resale will provide clear and precise guidance for sellers in reporting on commercial resales and enable the collecting society to manage resale notices and royalty payments more efficiently. A person is not prevented from giving notice of a commercial resale in a format other than the one that has been determined by the Minister.
This Instrument is a legislative instrument for the purposes of the Legislative Instruments Act 2003.
The Instrument commences on the day after it is registered on the Federal Register of Legislative Instruments.