emjaycee
Coach
- Messages
- 13,816
I think you missed a step out of the calculation - I get the following:The Tax on professional footballers in Australia is different.
So, lets say that Semi earn't $750k from 2018 onwards for 4 years, $350 last year and $200k the two years before that and $100k the year before that, then the ATO would consider that his Taxable Income would be as follows.
- 2015 = $33.3k
- 2016 = $75k
- 2017 = $125k
- 2018 = $212.5k
- 2019 = $375k
- 2020 = $512.5k
Meaning that he would've paid the approx amount of tax
- 2021 = $650k
- 2015 = $3k (Gross of $200k, Net of $197k)
- 2016 = $16k (Gross of $200k,Net of $184k)
- 2017 = $35k (Gross of $350k,Net of $315k)
- 2018 = $68k (Gross of $750k,Net of $682k)
- 2019 = $86k (Gross of $750k,Net of $664k)
- 2020 = $210k (Gross of $750k,Net of $540k)
Now with contracts you would probably expect to be continuing to earn more as your contract years goes on, so the Net for 2020 and 2021 is probably quite a bit lower than he would've expected.
- 2021 = $275k (Gross of $750k,Net of $475k)
I believe that there is still a tax obligation for athletes once they retire also though, for a further 3 years.
There is a thing called Above Average Special Professional Income that needs to be taken into account.