| When Does Sport Become a Profession? |
| The answer to this perplexing question is:-
Well,??? it depends??? |
In a recent Federal Court decision, an Olympian, Joanna Stone, was considered to have become a professional amateur in the period when she received substantial sponsorship, appearance money and prizes from her activities as a javelin thrower, despite her being a full time employee of the Queensland Police Force.
The fact that the sports - connected money significantly exceeded her earnings as a police woman was crucial. Her salary was $39,832 and her sporting receipts totalled $136,448. The court said that an athlete who pursues his or her sport as a full-time and money making activity is clearly carrying on business. The present case however was a ?borderline? one. She obtained sponsorships and used a professional coach and manager.
The result was reasonably predictable, but we believe moved the goal posts more in favour of the sports person (pardon the pun).
In every set of circumstances there will be a difficulty in deciding whether the amounts received are subject to income tax or GST. A careful review of all the circumstances is necessary.
11th-November-2003 |
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