AFL stars to pocket tax breaks after Australian Taxation Office ticks off image rights deal

AFL stars will pocket tax breaks on their football income under an image rights deal ticked off by the Australian Taxation Office.

Changes to the league’s player contract rules will allow players to divert up to 30 per cent of their club wages to a private company or trust.

Companies and trusts are subject to lower tax rates than the top personal income tax bracket of 49 cents in the $1.

A ranking system measuring on-field achievements including all-Australian selection, best and fairest results, Brownlow Medal placings, premierships and rising star nominations will be used to determine how much money a player can assign for the use of their image.

Fringe players can divert 5 per cent of their wages and middle-ranked players between 10 and 25 per cent.

Only first and second-year players, rookies and players on minimum salaries are ineligible.

Details of the arrangement sent to player agents by the AFL Players’ Association yesterday reveal a player earning $750,000-a-season will be permitted to direct $217,500 to a third-party image rights company where it will be subject to a lower tax rate.

A player earning $350,000 could allocate $52,500, paying full tax on $297,500.


The scheme starts this season.

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