September is a busy time on the sporting calendar in Australia. There are the AFL footy finals, the Rugby League (NRL) finals, and the beginning of the National Basketball League season. Just around the corner is the spring racing carnival and the cricket season; then it won’t be long before we’re talking tennis and formula one racing. We’re sports obsessed in this country and we host some of the world’s best sporting events. We know that professional athletes on the world stage tend to get remunerated pretty well for what they do, but have you ever wondered if they pay taxes just like you?

For professional athletes in Australia, managing finances can be a complex ordeal – it's not quite as simple as a weekly paycheck plus superannuation like most of us ordinary folk. There are lump sums in the form of prize money, as well as sponsorship deals, and endorsements. There is often a lot of travel involved, teams of people supporting the athlete, and earnings in multiple countries to consider. A solid understanding of what tax deductions you be legitimately claimed is really important.

The Australian Taxation Office (ATO) allows athletes to claim expenses directly related to earning their income, but the rules can be complex. Here’s a guide to help athletes (and their advisors) maximise deductions while staying compliant.

Common Deductible Expenses for Athletes

1. Training & Fitness Costs

• Gym memberships or specialist training facilities

• Personal trainers and coaching fees (if related to professional performance)

• Sports equipment, protective gear, and uniforms (with logos or required for competition)

• Recovery tools such as foam rollers, massage guns, and ice baths

Note: General fitness expenses unrelated to professional sport (e.g., a regular gym for personal use) are not deductible.

2. Travel & Accommodation

• Airfares, taxis, or rideshare to and from competitions, training camps, or promotional events

• Accommodation and meals when travelling interstate or internationally for official duties

• Vehicle expenses if travelling between venues for professional purposes (logbook method applies)

3. Medical & Health Expenses

• Sports medicine, physiotherapy, chiropractic, and massage therapy directly related to performance

• Specialist treatments (e.g., nutritionists or sports psychologists)

• Strapping tape, bandages, and injury recovery equipment

Private health insurance and general medical costs (not directly related to earning income) are typically not deductible.

4. Professional Development & Education

• Courses, workshops, or certifications that enhance sporting performance

• Seminars on sports management, nutrition, or injury prevention

5. Agent & Management Fees

• Payments to player managers or agents for contract negotiations, endorsements, and sponsorship management

• Legal or accounting fees associated with professional contracts

6. Marketing & Promotion

• Website or social media management costs

• Photography and video production for professional promotion

• Sponsorship obligations (e.g., branded clothing for appearances)

7. Home Office Costs

With the rise of digital promotion, many athletes operate a business-like setup at home. Deductible items may include:

• Computer, phone, and internet expenses (apportioned for business use)

• Office equipment and supplies

What Professional Athletes Can’t Deduct

• Everyday clothing or footwear (unless it’s protective or branded with a sponsor’s logo)

• Personal grooming (haircuts, cosmetics)

• Fines (e.g., for on-field misconduct)

• General living expenses

Record Keeping is Key

The ATO requires detailed records, including:

• Receipts and invoices

• Travel diaries for trips over six nights

• Logbooks for vehicle expenses

• Contracts and agreements with clubs, agents, or sponsors

Final Thoughts

For professional athletes, tax time is about more than just tallying match payments and sponsorship income. Strategic management of deductible expenses can make a significant difference in after-tax earnings. Given the complexity of athlete income streams, working with an accountant who specialises in sports or entertainment is highly recommended.