If you’re an Australian athlete who competes internationally, you’ll know that staying on top of your overseas income and tax is a vital part of managing your financial affairs effectively. However, while it’s certainly important, most professional sportspeople have their focus firmly on the field, meaning that tax planning and management is often neglected.
At Archer Sports Advisory, we work with elite athletes across Australia to help them establish, grow and protect their wealth. As experienced advisors working exclusively with professional athletes, we offer targeted advice to help you structure your affairs appropriately, maximise your income, and minimise your tax.
What do I need to know about overseas income and tax?
Australian resident athletes earning sports-related income overseas must pay Australian tax on any international income at Australian marginal tax rates. These earnings might include your employment income, signing bonuses, competition winnings, endorsements and more.
Athletes who are Australian residents must also disclose any non-sports-related income (such as income received from property or shares) originating from foreign sources in their tax return.
If you earn an overseas income, the calculation of the tax you must pay in Australia includes income that’s subject to tax in foreign countries. However, any local tax that’s paid on income derived in another country can be claimed as a tax credit in your Australian tax return.
Understanding overseas income and tax is not straightforward – so it really does pay to work with experts.
What if I’m not an Australian resident for tax purposes?
Non-residents and temporary residents competing in Australia must only pay tax on their Australian-sourced income. However, you can be classified as an Australian resident for tax purposes even if you’re not an Australian citizen or permanent resident.
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 is a worthwhile read.
How can athletes earning overseas income minimise their tax?
The tax rules that apply to athletes earning income internationally are complicated. If you’re competing overseas, you should seek tax advice from an advisor who specialises in advising elite sportspeople to ensure you’re making the most of your earnings.
At Archer Sports Advisory, we support some of Australia’s leading cricket, football, netball and basketball stars with tailored advice to help them stay on top of overseas income and achieve positive tax outcomes.
Whilst every effort has been made to provide valuable, useful information in this guide, Archer Sports and any related associated entities accept no responsibility or any form of liability from reliance upon or use of its contents. Any suggestions should be considered carefully within your own particular circumstances. This is intended as general information only.