Australias elite athletes admit to being blindsided by a proposal in Tuesday's federal budget which would significantly cut their incomes, particularly those of the nations emerging cadre of female stars.
The board of the Australian Athletes Alliance, representing more than 4000 members, has written to the federal Treasurer, Scott Morrison, pointing out the implications of a proposal to abolish their ability to license their name and image rights to another entity.
Taken by surprise: AOC boss John Coates.
Photo: AAP
Current tax laws allow all athletes, including low-paid, semi and part-time professional (such as Olympians), to protect the use of their image by sponsors and commercial entities for promotional purposes. These commercial rights, outside of the playing contract, are assigned to an entity where the income is taxed at the company rate.
The federal government initiative, perceived as a naked cash grab, would impact on female athletes, particularly in the football codes, where they are very marketable but receive relatively low incomes from their playing contracts.
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It could also force many top sports stars to relocate overseas where concessions on the use of image rights are allowed.
The proposal is at odds with a recent agreement with the Australian Tax Office to create a “safe haven” for athletes where 10 per cent of an athletes earnings would be apportioned to image rights.
Ian Prendergast, chief executive of the Rugby League Players' Association, said the recently negotiated CBA with the NRL enshrined this agreement, with a commitment from the NRL to channel a higher percentage if the ATO agreed.
General Secretary of the AAA, Jacob Holmes, said. “Australian sports compete in a global marketplace for talent and this decision, if followed through, this would hurt their viability and significantly impact on many athletes livelihoods.”
The AAA also emphasised the inferior rights which Australian athletes are currently afforded when compared with global best practice in countries such as the US, England, Ireland and New Zealand.
“It would seem the consequences of the tax policy havent been fully considered and we seek to meet with the Treasurer and other government representatives to provide insights into the significant impacts of the proposed changes,” Holmes said.
The AAA represents Australias eight major player associations:
- Australian Cricketers Association (ACA)
- AFL Players Association (AFLPA)
- Australian Jockeys Association (AJA)
- Australian Netball Players Association (ANPA)
- Australian Basketballers Association (ABA)
- Professional Footballers Australia (PFA)
- Rugby League Players Association (RLPA)
- Rugby Union Players Association (RUPA)
Australian Olympic Committee president, John Coates, also admitted to being blindsided by the proposal.
However, he pointed out Australias Olympians are represented by a self-elected athletes commission and the AOCs team members are only under its jurisdiction for three to four weeks every four years.
Coates said: “I suspect I would have known if the athletes commission was made aware.
“Perhaps this is the Treasurer acting independently of the ASC [Australian Sports Commission].”
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Roy Masters is a Sports Columnist for The Sydney Morning Herald.
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