Australia has one of the highest income tax rates of developed countries globally. Our high tax rates make it vital that anyone lodging an Australian tax return maximises the deductions they claim.

To claim a tax deduction, you must have paid for an expense using money you’ve earned after paying tax (your after-tax income). You can’t have been reimbursed for the expense, and you must be able to prove a direct connection between earning your income and incurring that expense.

What tax deductions can professional athletes claim?

At Archer Sports Advisory, we work with athletes to help them maximise their deductions. Some common tax deductions that professional athletes can claim include:

• Motor vehicle expenses
• Travel expenses such as taxi and Uber fares and road tolls
• The cost of luggage and bags used to transport gear for interstate and international games
• Manager or agent fees (where they’re paid by you and not your club or federation)
• Player association membership fees
• The cost to repair or replace equipment and training gear (where sponsors don’t cover this)
• The cost of gym memberships
• Professional advice fees such as those from your accountants and lawyers
• The work-related portion of your internet, telephone and pay-TV bills
• Stationery and home office expenses
• Income protection insurance premiums
• Depreciation on training equipment

What expenses can’t I claim a tax deduction for?

In our experience, the Australian Tax Office (ATO) will closely scrutinise and may reject any claims for tax deductions relating to the following expenses:

• Attendance at social functions (even if it’s required by your employer)
• Personal grooming
• Medical appointments
• Meal expenses not incurred while travelling (even if these costs relate to advice to increase or decrease weight)
• The cost of supplements

At Archer Sports Advisory, we support elite sportspeople with comprehensive financial advice that reflects the complexities of being a professional athlete. We understand that managing tax deductions often isn’t a key area of focus – we’re here to help with personalised guidance to ensure you’re maximising your opportunities.