NRL 2025: PNG set to be tax free for players in landmark expansion deal

NRL players who join a new expansion team in Papua New Guinea could pocket millions of tax-free dollars, after the ARL Commission struck a landmark deal with the PNG government.

The ARL Commission has struck a landmark expansion tax deal that will see the NRL’s biggest stars pocket millions in extra income by playing for a 19th team in Papua New Guinea.

This masthead can reveal the Papua New Guinea government has rubber-stamped a historic agreement that will see Australian league stars receive tax benefits by moving overseas to Port Moresby to play NRL.

The unprecedented tax deal follows months of high-powered negotiations with ARL Commission boss Peter V’landys.

The ‘danger money’ deal will extend to staff and officials of the proposed Papua New Guinea team, which is slated to enter the NRL in 2028.

The NRL’s No.1 player, Panthers superstar Nathan Cleary, is currently on $1.3 million-a-season at Penrith.

Under a tax-reduced PNG contract, Cleary could theoretically save $581,628 on the tax he currently pays every year in Australia.

Tax free PNG! NRL players could pocket millions in extra income if they play for team in Papua New Guinea. Picture: Getty Images

It means a superstar player, such as Cleary or Broncos ace Reece Walsh, could pocket an extra $5 million over a 10-year period – aided by tax concessions – by playing NRL in PNG.

It is an extraordinary financial sweetener for NRL players to consider moving to the Pacific and one of the final impediments to PNG being rubber-stamped as an NRL expansion team.

Australia’s Federal government has signed off on a $600 million, 10-year funding deal – $290m of which will go directly to the PNG rugby league club.

The NRL is in the advanced stages of talks with the West Australian government with a view to the Perth Bears and Papua New Guinea being unveiled as the 18th and 19th clubs within a fortnight.

It’s uncertain if the benefit extends to PNG deals being totally tax free, but the one certainty is NRL players and employees will not be subject to the higher tax rates experienced at Australia-based clubs.

Under this deal, a player like Nathan Cleary could pocket an extra $5 million dollars over a 10-year stint in PNG. Picture: Getty Images

In Australia, NRL players are subjected to 37 per cent tax for salaries between $135,000 to $190,000, while most stars are taxed at 45 per cent for incomes in excess of $190,000 annually.

But the PNG tax bonanza represents a game changer in luring the NRL’s best players to ensure a competitive franchise club in the Pacific.

There are fears a new PNG team could struggle in its formative years and be a public-relations disaster, but V’landys believes the tax concessions will be a major magnet for NRL players to earn more money while driving rugby league’s Pacific growth project.

Australian coach Mal Meninga, a former high-performance director for PNG’s national team, says the tax incentives will ensure the NRL’s proposed Pacific team is successful.

“I think the tax breaks are a reasonable incentives early on,” Meninga said.

“They key is building a sustainable future for a PNG team and having tax concessions is a great way to entice Australian players to Port Moresby.

“There is no doubt in my mind a PNG team can work.

“Rugby league is the No.1 sport in PNG, so they certainly have enough passion and enough players.

“They’ve just got to get their development pathways set up correctly.

“If they get the development right, backed by top Australian players who will receive tax concessions, PNG will be the envy of the rugby league world.

“I truly really believe that and I applaud Peter V’landys for having the vision to expand to PNG.”

Kangaroos coach Mal Meninga believes the tax incentives will help ensure a proposed PNG team would be successful. Picture: Getty Images

This year’s NRL payment ceiling for each club is a total gross amount of $12.3 million for a 30-man roster.

By offering tax-reduced deals, a PNG franchise could be at least $4 million better off – per season – compared to Australian and New Zealand teams.

While rival clubs may consider the tax relief an unfair playing field, the NRL does not control tax regulations, with New Zealand already offering Warriors players a better tax-rate compared to Australia.

During Magic Round in May, V’landys said NRL stars would jump at the chance to earn tax-free dollars in PNG.

“A lot of my staff at NSW Racing get headhunted to go to Hong Kong and there’s only one reason – because they only pay 15 per cent tax over there,” he said.

“They are able to save up a fair bit of money.

“The players won’t live there forever, and they could earn double or three times what they would have earned if they lived in Australia.

“You want people to go to PNG with the necessary skills to be able to deliver what we want to deliver (an NRL team).”

ARL Chairman Peter V'landys believes NRL players will jump at the chance to earn tax-free money in PNG. Picture: Richard Dobson

The Australian government’s funding package will duly reward the existing 17 clubs.

Of the $600m deal, $290 million will go to the PNG team over 10 years.

A further $250m will be allocated to pathway development and social-welfare programs in PNG, leaving between $50-60 million to be paid as a licence fee, which will be shared by the NRL clubs.

The NRL is at the advanced stage of expansion talks and V’landys has promised to consult the existing 17 clubs, via a three-person committee, before a definitive call is made.

This masthead revealed last week that eight expansion hopefuls had bids rejected, but V’landys remains confident the Perth Bears will join PNG in an expanded league in the march towards 20 teams by 2030.