AFL Players Association hits out at Treasurer Scott Morrison over decision to scrap fame tax breaks

AFL players could push for massive pay rises to cover millions of dollars they claim to have lost after the Turnbull Government shut down a tax loophole.

EXCLUSIVE: THE powerful AFL players’ union will tackle Treasurer Scott Morrison over his decision to rip tax breaks worth millions of dollars from the game’s biggest names.

Superstars such as Dustin Martin, Lance Franklin and Patrick Dangerfield face a significant financial hit after the government quietly ended the tax-free kick in last week’s federal Budget.

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Players will be banned from claiming a discounted tax rate when profiting from their fame and image rights in lucrative sponsorship and corporate deals, which can be worth hundreds of thousands of dollars.

The AFL Players’ Association is demanding to meet the Treasurer, arguing the change hasn’t been thought through and should be overturned.

It could also pressure the AFL to increase the salary cap and hand big pay rises to players to make up for their lost income.

But Mr Morrison told the Herald Sun celebrities and athletes needed to pay their fair share of tax.

“Taxes need to be lower, simpler and fairer, but they also need to be paid,” he said.

Malcolm Turnbull with Scott Morrison at an NRL match. Picture: AAP

“High-profile celebrities and sports people often structure their earnings so the income they receive for image rights goes into a separate company or trust.

“Under these changes, these extra earnings will be treated as normal income, like everyone else who earns and pays tax on those earnings. It’s about fairness.”

AFLPA chief executive Paul Marsh said players would collectively lose millions of dollars each year, and the biggest names in the game would be hit hardest. “This includes AFLW players, some of which are generating more income through partnerships and endorsements built on the use of their image than through their football contracts,” he said.

AFL clubs have more than $1 million a year to pay players above their salaries with “additional services agreements” covering marketing and other off-field work. But Mr Marsh said increasing the cap for those agreements would make “very little economic sense” if players lost the tax benefits.

Sydney Swans superstar Lance Franklin. Picture: Nathan Edwards

The players could instead push the AFL to increase the salary cap to make up for their lost income, although this could not happen until the $1.8 billion pay deal expires in 2022. “It is likely that this decision will impact what we look to negotiate in the future,” Mr Marsh said.

He said it would also impact on clubs allowing their sponsors to use player images.

The Australian Athletes’ Alliance — representing 4000 athletes across sports including cricket, rugby, soccer, basketball and netball — is spearheading the effort to get Mr Morrison to overturn his decision.

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