We all know that when it comes to life, there are only two things that are certain: death and taxes. While you can’t do much about the later, you can make a few life changes to help you avoid paying heavy taxes. It is common knowledge that the government not only imposes a tax on being an Australian resident, it also imposes a tax on professional golfers who earn from the sport. It goes without saying that regardless of where the golfer won the tournament if he is an Australian resident, he has to pay income tax to the Australian government.
This includes anyone who is earning from golfing, which includes people who are working as consultants, self-employed golfers, or professional golfers. For this reason, most pro golfers tend to buy their houses in locations that have low or no income state tax. Golfers like Adam Scott have most of their property in the Bahamas, Cayman Islands, and British Virgin Island as they impose no tax. “Obviously, there are financial advantages to living in a no-income-tax state, but you need to look at more than that. Your overall tax liability in a state is going to include sales tax, property tax, maybe even an estate tax,” says Rocky Mengle, a state-tax specialist with the research firm Wolters Kluwer Tax & Accounting.
Golf as a Profession
Where most golfers only play for fun, there are some who actually want to make a career out of it. So, if you are playing golf in any way that produces a profit, you are going to be liable for income tax. If you want to play Golf in Australia, you must register for income tax and obtain a Tax File Number (TFN). You can easily apply for your TFN Online and get it delivered to your address. To take things into perspective, Phil Mickelson had to pay almost 45% of his Scottish Open winnings in cash. In 2018, Phil Read, who won the 2018 master and claimed almost $2 million dollars in victory had to pay 42% of it in taxes. Moreover, the UK and the US collect taxes on the endorsement incomes that even non-residents receive. For this exact reason, several athletes like Usain Bolt and Rafael Nadal refuse to take part in any competition that takes place in these areas.
Should Golfers Pay Taxes?
When you look at things from a neutral point of view, every person is liable to taxes. Whether it is a layman or a golfer who earns millions, a rule is a rule, and they must be the same for everyone. It doesn’t matter if someone is earning only a fraction of what these golfers do, if they are paying taxes, then the people who are earning millions should do it too. It is true that they work, train, and compete in a more professional and rigorous way than most people do. But, at the end of the day, a job is a job, and no profession should be regarded on top of the other.
For anyone looking to be their own boss and go it alone in business, but are afraid of the risk, buying a franchise business is an ideal solution. Franchises offer the independence of small business ownership, supported by the benefits of a big business network.
Some Golf franchises available in Australia include:
Drummond Golf Shops