Tax-free Deal Means PNG Team Players Will Earn 'millions More' | The Sporting Base
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Tax-free deal means PNG team players will earn ‘millions more’

July 21, 2024

Tax-free deal means PNG team players will earn ‘millions more’

The Australian Government has agreed to let players who sign with Papua New Guinea’s NRL expansion team earn tax-free “danger money” that would encourage them to join the Port Moresby-based organisation.

This would mean the game’s aces like Nathan Cleary or Reece Walsh could earn as much as $6 million more over a decade-long deal, the Daily Telegraph suggested today.

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PNG’s looming tax breaks wouldn’t impact the NRL salary cap standing, The Sporting Base understands, with the 2028 expansion team still having to build any future roster under the same restrictions as every other team. Where the players make more money is in their take-home pay packet, which is still quite the boost.

The 2024 cap was for $12.3 million across a 30-man roster, with more than $5 million going to tax.

Peter V’landys has already attempted to defend the decision by claiming it will lure the game’s biggest players to an expansion outfit that will want star power as quickly as possible. V’landys has been very vocal about his desire to get the NRL expanded out to 20 teams as soon as possible—and maybe even as soon as the 2032 Brisbane Olympics.

“A lot of my staff at NSW Racing get headhunted to go to Hong Kong and there’s only one reason: Because they only pay 15 per cent tax over there,” he explained about PNG’s tax-free carrot.

“They’re able to save up a fair bit of money. The players won’t live there forever, and they could earn double or three times what they would have earned if they lived in Australia. You want people to go to PNG with the necessary skills to be able to deliver what we want to deliver [an NRL team].”

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No NRL players have said they’d play for PNG yet, with representative Justin Olam even suggesting the bosses “invest in grassroots” before forcing through an NRL-level team too quickly.


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