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No one’s exempt from having to pay taxes – not even your favorite sports stars who may play in the rugby league, rugby union, soccer or Australian Rules football.
Players in our great football codes may have hung up their boots for this season, and many may finally be catching up with their tax returns. A recent guide released by the Tax Office for such footballers reveals some interesting things about their tax affairs.
What unusual deductions are available?
Broadly speaking, individuals are allowed to claim a tax deduction for their expenses if they are able to demonstrate that such costs are directly related to their income earning activities (eg. salary income).
In a Tax Office guide developed for footballers, there are some unusual deductions that professional sportspeople may be entitled to claim in their tax return.
cosmetics, shaving products, deodorant, general hair products, general skincare products and
What sort of income do footballers earn?
Just like the typical individual taxpayer, professional footballers need to show all assessable income they received during the income year, but their income may include items that are not found on an average individual’s tax return.
The Tax Office guide outlines certain income that may also need to be included in assessable income:
In some situations, footballers may even need to show in their tax return non-cash benefits that they, their spouse or children received because of their sporting activities or their profile. A benefit could be:
This is particularly so from sponsorship or business arrangements. Where these benefits are provided by their employers, these may instead be included as a “reportable fringe benefit” in the payment summary of the sports person under certain conditions.
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