Private ruling: PAYGW
Date of advice: 23 December 2025
Published: 9 February 2026
Ruling period: Year ended 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Is the Footballers' match payment subject to Pay As You Go Withholding (PAYGW) pursuant to section 12-35 of Schedule 1 Part 2-5 of the Tax Administration Act 1953 ? | A1: Yes

Relevant facts and circumstances: 1. The Club is a nonprofit organisation, and it is registered with the Australian Charities and Not-for profits Commission. 2. You are registered Pay-as-you go Withholding. You are in the business of, amongst other things such as contracting footballers to play sporting games to play in the XX Cup (XX Cup). 3. You contracted XX players with executed agreements to play in the XX Cup. • The match payment for a win ranging from $XX to $XX per game. • The match payment for the draw or loss is $XX to $XX. • Out of the XX contracted players, XX are employed full time, XX part time and XX employed casually and XX unemployed • Majority of the employees do not rely on the match payments income to cover for their day to day living expenses. • The Club historically deduct PAYGW and pay SG on behalf of players in XX Cup. 4. The terms of the contract set out in XX playing agreement (Standard Football contract) are as followed: a. The relationship between the football player and the Club us defined as one of the employer and employees b. The player agrees to attend and participate in matches and training as directed by the Club. c. The players agree to participate in all activities required by the Club and for the promotion of Club. d. The parties acknowledge that if the player is selected by the affiliated XX Club to play Rugby league in the NRL, the Club shall make the player available to play for the affiliated NRL Club. e. Match payment calculated in schedule 1 shall be made monthly in areas otherwise agreed in writing. f. The value of match payment is dependent on the game being played at the outcome of the game(win/lose/draw) g. The players agree to take out and maintain the highest level of private hospital, medical and associated health benefits insurance possible. h. The player authorises the Club to deduct from payment due to the player, insurance premiums to cover sporting injuries or any other premium which extends coverage to the players in respect of the personal injury (where applicable) i. If the player suffers an injury, the Club shall reimburse the payers in respect of any out of the pocket medical expense and this obligation ceases at the earliest of recovery, treatment concluding or 12 months after the Expiry Date of the contract j. The player will not be required to train or play the game for six weeks during each contract year. k. The player is not entitled to be paid separately for any leave taken. Leave taken outside of contracted period of leave must approved by the Club. 5. The Club provides uniforms, while players are responsible for the cost of boots, mouth guards, tape, head gear, and other protective gear. 6. The players obey all reasonable directions of the Club relating to training for and playing the Game.

Relevant legislative provisions: Schedule 1 of to the Taxation Administration Act 1953 (TAA) section 12-35 | Superannuation Guarantee (Administration) Act 1992 (SGAA) section 12

Reasons for decision: Summary: 1. There in an employment relationship between the XX Club and the players. The Club is required to withhold match payments made to the footballers. The superannuation guarantee is payable with reference to the match payment. | Detailed Reasoning - Detailed reasoning: 2. Section 12-35 of the Tax Administration Act 1953 (TAA) provides that '[a]n entity must withhold an amount from salary, wages, commission, bonuses or allowances it pays to an individual as an employee (whether of that or another entity)'. 3. For section 12-35 of TAA to apply, there must be a payment of salary, wages, commission, bonuses, or allowances made by an entity (the entity does not need to be the employer) to an employee: • as a consequence of their employment, and • as an individual in their capacity as an employee. Who is an employee The term 'employee is not defined in the TAA and it has its ordinary meaning. There are general tests have been developed by the courts to assist in the determination of the nature of the relationship. However, defining the contractual relationship between the employer and employee can be difficult. It will depend on the facts of each case whether an individual is a common law employee. There are a number of common law factors to consider. 4. The common law factors discussed in the taxation ruling TR 2023/4 Income Tax and Superannuation guarantee: who is an employee ? The tests to be applied in determining if a relationship is one of employment are: Serving in the engaging entity's business 5. The correct characterisation of the business being carried on by the engaging entity is an essential part of determining whether the worker is working in the business of the engaging entity. 6. Therefore, a sportsperson who plays games in the Club easily indicates they are serving in the engaging entity's business. Players wearing the Club's uniform in the game strongly supports that they are employees serving for the employer. Control and the right to control 7. An employer generally has a right to control how, where and when its employee performs their work. The importance of control in this context lies not in its actual exercise, but rather in the contractual right of the employer to exercise such control. 8. In this case, it is the Club that determines when and where the players can play, the Club exercising significant control by the payer in the contract, for example the players have an executed agreements to play in the XX Cup and meet other required contractual agreements signed with the Club. The payer's permission is also required for the player to be involved in other public activities. Other indicia like The ability to delegate, subcontract or assign work. 9. The decision of whether the worker can delegate, or subcontract is significant factor in determining whether a worker is an employee and an independent contractor. If a person is contractually required to personally perform the work, this is an indication that the person is an employee. 10. The players do not have the ability to delegate their work nor does not find someone to play on their behalf. They are directly providing service to the Club and therefore, their job is limited in scope. The Club has the ability to source another worker and legally delegate as they like. Consequently, this will indicate a worker is an employee of the engaging entity. Result test When contracts producing a result, payment is often negotiated by the worker for a specified outcome. Where the substance of a contract is to achieve a specified result, there is a strong (but not conclusive) indication that the contract is one for services. The reference to a 'result in this context is the performance of a service by one party for another where the first-mentioned party is free to employ their own means (such as third-party labour, plant, and equipment) to achieve the contractually specified outcome. 11. The way in which a worker is remunerated for their services, and the process through which the parties determine this remuneration, can help to identify whether a worker is being engaged to serve in an engaging entity's business or has merely contracted with that business to produce a specified result. 12. In this case, the Club pays the contracted players based on a particular remuneration condition for the XX contractors' players with executed agreements to play in the XX Cup. The players receive a payment with match a win ranging from $XX to $XX per game and a match payment for the draw or loss is $XX to $XX. The match payment applies all football players in the game; the player does not negotiate the match payment for the specified outcome. The players have to follow the directions of the Club relating to training for and playing the game. They are not free to employ their own means to achieve the contractual outcome. Provision of tools and equipment 13. The provision of assets, equipment and tools by a worker, and the incurring of expenses and other overheads, may be an indicator that the worker is an independent contractor. However, a worker bringing their own tools is not automatically inconsistent with an employment relationship. The nature, scale and cost of the tools and equipment must be considered. 14. Furthermore, an employee, may be reimbursed (or receive an allowance) for expenses incurred in the course of employment, including for the use of their own assets such as a car. In contrast it may be more common for an independent contractor to factor these anticipated expenses into a negotiated price for services. 15. The Club pays for the players' uniform, and the players pay for their boots, mouth guards, tape, head gear, and other protective gear. The uniform with the Club's icon shows, that the players represent the Club in the game and work for the Club. Risk 16. Where the worker bears little or no risk of the costs arising out of injury or defect in carrying out their work, they are more likely to be an employee. On the other hand, an independent contractor bears the commercial risk and responsibility for any poor workmanship or injury sustained in the performance of work. 17. The Club appears to have assumed the responsibility of the players in terms of commercial risks. For example, if something happens to the players in the football games, the employer bears the cost for football games associated injuries. The players will pay for health insurance; however the Club will pay the expense when the insurance does not cover. This indicates the payer are responsible for the expenses. | Detailed Reasoning - Conclusion: There is strong indication that there is an employment relationship between the Club and the players. The players wear the Club's uniform when they are in the game, it shows that the football players serve for the employer in their premise. The Club has control over the players of what games they play. The player cannot delegate to someone else to play the game. The Club bears the commercial risk; they pay the gap when the health insurance cannot cover all the medical expenses for players' injuries. The players are not paid for the 'result' as they cannot negotiate a match payment and have to obey all reasonable direction of the Club relating to training and playing the game. The Club provides uniform for the players to wear during the game; this shows limited tool provided for the players to perform their task. When the players are employees of the Club, the Club will have to withhold payments to employees under section 12-35 of the TAA. Superannuation is also required to be paid by the Club.