Professional athletes have unique financial, legal and tax needs. For this reason, many elite sportspeople work with advisors who specialise in the sector and can provide expert advice informed by a comprehensive understanding of the nuances of being a pro athlete.

Tax can be one of the most significant expenses that athletes taxed in Australia incur, so it’s vital you’re working with a team that can help you minimise your tax bill.  

If you’re an athlete and an Australian resident, you must declare all income you’ve earned both in Australia and internationally in your Australian tax return. (If you’re not sure whether you’re considered an Australian resident for tax purposes, our blog What athletes need to know about residency and tax provides some guidance).

What types of income must athletes include in their assessable income?

Australian athletes must include the following types of income in their assessable income: 

• Salaries and wages
• Competition winnings and fees received
• Endorsements or sponsorships (paid in cash or kind)
• Prizes
• Holiday pay, long service leave, and other payments relating to your employment
• Interest earned on any savings
• Dividends received
• Rental income
• Gains from the sale of assets
• Overseas income

You’re entitled to a tax-free threshold, which means you don’t pay tax on the first $18,200 you earn (the tax-free threshold is $18,200 as of the 2022 financial year). You may, however, need to pay a Medicare levy of 2% of your taxable income. The Medicare levy helps fund some of the costs of Australia’s public health system.

As a professional athlete, your constant focus on your fitness and on-field performance may mean that keeping track of your financial affairs and tax matters isn’t top of mind. At Archers Sports Advisory, we provide a comprehensive suite of wealth management services, with legal services soon to come, to support you throughout your sporting career and beyond.

As specialist advisors to professional athletes, we understand the many tax rules that apply to sportspeople. We partner with basketball, AFL, soccer, cricket and netball stars to help them minimise their tax bills and maximise their income, with a long-term focus on growing and protecting their wealth.