Gaza FC - Salary Cap Breaches

[old fullback]

Where is Gazas proof that this never happened? Got caught now pay for it, asking the community for funds is a bit rich

[Jimmy_041]

$3,067 today

[gadj1976]

$3,067 today

They'll be back on the park in no time at this rate

[Jimmy_041]

$3,367

Breaching the weekly salary cap again

[Armchair expert]

Question - Why is there a salary cap anyway?

[jo172]

Question - Why is there a salary cap anyway?

Under the rules this is the purpose and objects.

I would be very interested in some rigorous analysis as to whether the Salary Cap is achieving these objects and if it is, the extent to which the negatives outweigh the objects which are being achieved.

I don't have a firm view one way or the other, but I tend to suspect at least in respect of some of the objects its entirely counter productive.

[jo172]

I know that there is some data to the effect that there are far less clubs falling over post salary cap than pre salary cap, but not sure to what extent this is correlation as opposed to causation.

[Jimmy_041]

I know that there is some data to the effect that there are far less clubs falling over post salary cap than pre salary cap, but not sure to what extent this is correlation as opposed to causation.

and contrary to popular belief, it was first proposed by country leagues because payments were getting out of hand

Gaza score today

$3,392

[jo172]

I know that there is some data to the effect that there are far less clubs falling over post salary cap than pre salary cap, but not sure to what extent this is correlation as opposed to causation.

and contrary to popular belief, it was first proposed by country leagues because payments were getting out of hand

Gaza score today

$3,392

Particularly given looking at objectives (a) to (d) and (f) at least in respect of the AdFL a combination of APPS and promotion and relegation go a reasonable way to achieving those objectives

[heater31]

Gaza score today

$3,392

That's only going to get a couple of hours of legal counsel......

[LaughingKookaburra]

I know that there is some data to the effect that there are far less clubs falling over post salary cap than pre salary cap, but not sure to what extent this is correlation as opposed to causation.

Only in my opinion, however I also suspect an unspoken reason why salary caps are in place is to also keep the tax department at bay. I do find it interesting how blokes can knowingly can get paid $9-10k in traceable funds a year on top of their current earnings and not pay a cent in tax (In some cases much more as coach ect) - If that goes too big then you are giving the tax department a real good reason to get involved. Also, if you get too big you can leave yourself wide open to more interesting activities as we have seen in some cases with grass roots soccer across the country.

[Jimmy_041]

I know that there is some data to the effect that there are far less clubs falling over post salary cap than pre salary cap, but not sure to what extent this is correlation as opposed to causation.

Only in my opinion, however I also suspect an unspoken reason why salary caps are in place is to also keep the tax department at bay. I do find it interesting how blokes can knowingly can get paid $9-10k in traceable funds a year on top of their current earnings and not pay a cent in tax (In some cases much more as coach ect) - If that goes too big then you are giving the tax department a real good reason to get involved. Also, if you get too big you can leave yourself wide open to more interesting activities as we have seen in some cases with grass roots soccer across the country.

Interesting discussion this

I was talking with an AdFL umpire at the pub and he said he gets taxed on his payment yet others say they dont.
My understanding was hobbies weren't taxable until the ATO deems them to no longer be a hobby (ie) you are earning regular good money. You also cant claim deductions (which is fair enough)
Anyone know for sure?

[S Demon]

I know that there is some data to the effect that there are far less clubs falling over post salary cap than pre salary cap, but not sure to what extent this is correlation as opposed to causation.

Only in my opinion, however I also suspect an unspoken reason why salary caps are in place is to also keep the tax department at bay. I do find it interesting how blokes can knowingly can get paid $9-10k in traceable funds a year on top of their current earnings and not pay a cent in tax (In some cases much more as coach ect) - If that goes too big then you are giving the tax department a real good reason to get involved. Also, if you get too big you can leave yourself wide open to more interesting activities as we have seen in some cases with grass roots soccer across the country.

Interesting discussion this

I was talking with an AdFL umpire at the pub and he said he gets taxed on his payment yet others say they dont.
My understanding was hobbies weren't taxable until the ATO deems them to no longer be a hobby (ie) you are earning regular good money. You also cant claim deductions (which is fair enough)
Anyone know for sure?

If he's getting taxed it probably means he's declaring the income

[ThinkVision]

Interesting discussion this

I was talking with an AdFL umpire at the pub and he said he gets taxed on his payment yet others say they dont.
My understanding was hobbies weren't taxable until the ATO deems them to no longer be a hobby (ie) you are earning regular good money. You also cant claim deductions (which is fair enough)
Anyone know for sure?

I didn't umpire this year but did the five or six years prior. Definitely didn't get taxed and/or need to declare it at tax time, it was classed as a hobby. I highly doubt it changed this year.

It was only a few years back it changed to electronic payments and I think the only issue there for some was hiding the spending money from the home tax office .

[Trader]

I know that there is some data to the effect that there are far less clubs falling over post salary cap than pre salary cap, but not sure to what extent this is correlation as opposed to causation.

Only in my opinion, however I also suspect an unspoken reason why salary caps are in place is to also keep the tax department at bay. I do find it interesting how blokes can knowingly can get paid $9-10k in traceable funds a year on top of their current earnings and not pay a cent in tax (In some cases much more as coach ect) - If that goes too big then you are giving the tax department a real good reason to get involved. Also, if you get too big you can leave yourself wide open to more interesting activities as we have seen in some cases with grass roots soccer across the country.

Interesting discussion this

I was talking with an AdFL umpire at the pub and he said he gets taxed on his payment yet others say they dont.
My understanding was hobbies weren't taxable until the ATO deems them to no longer be a hobby (ie) you are earning regular good money. You also cant claim deductions (which is fair enough)
Anyone know for sure?

The hobby rule used to be capped at $3k.
I think they changed that now, and it's more about the intent, it's wishy washy.
I think there is some line about if you're doing it for enjoyment (and happen to get money), then it's a hobby, but if you're doing it for the cash, then its clearly taxable.

I think they changed the rules when the 'gig' economy started to take off. Think Uber, airbnb, webcaming, etc. These are 'casual' forms of income, but all done for the purpose of earning money, more than the enjoyment of the activity.

I think sport umpiring is still a grey area.
I suspect if you're doing one game once a week, and paying tax on a regular job, then no worries.

If you're doing 4 games a weekend, and have no other source of income (or only minimal), then they'd be far more likely to rule it as your job and want you to pay tax on it.

*this is not financial advice and you should seek out an expert opinion*

[jo172]

The other elephant in the room is that if it's taxable income then clubs ought to be considering super contributions, workcover etc.

If you wanted to wipe payment out of footy getting return to work chasing clubs would be one of the quickest ways because they can be ruthless.

[Yank Man]

The other elephant in the room is that if it's taxable income then clubs ought to be considering super contributions, workcover etc.

If you wanted to wipe payment out of footy getting return to work chasing clubs would be one of the quickest ways because they can be ruthless.

Very interesting topic, you are right jo172 all that should be part of it. Back in the day when I was football director at Edwardstown all paid players received a group certificate and had to declare their earnings, and frankly most of them were earning the same as current day players. The upside was they were allowed to claim expenses. Times have changed obviously but what constitutes a ‘hobby’ and how much is free and not taxable.

[Dinglinga75]

Surely Greg Griffin could do this pro bono. ... bit of a The Castle feel to it ... just hope Gaza have a photocopier that works

[Jimmy_041]

Surely Greg Griffin could do this pro bono. ... bit of a The Castle feel to it ... just hope Gaza have a photocopier that works

He does everything out of the goodness in his heart

[amber_fluid]

Surely Greg Griffin could do this pro bono. ... bit of a The Castle feel to it ... just hope Gaza have a photocopier that works

He does everything out of the goodness in his wallet

EFA