Class Ruling CR 2025/61

What this ruling is about: 1. This Ruling sets out the income tax and fringe benefits tax consequences of payments from the Player Retirement Account (PRA) received by National Rugby League (NRL) players (Players) who are members of the Rugby League Players' Association Limited (RLPA). 2. Details of this scheme are set out in paragraphs 10 to 58 of this Ruling. 3. All legislative references in this Ruling are to the Income Tax Assessment Act 1997, unless otherwise indicated. Who this Ruling applies to 4. This Ruling applies to you if you: When this Ruling applies 5. This Ruling applies from 1 July 2025 to 30 June 2030. 6. A payment made by the RLPA from the PRA to a Member within 12 months of termination of their employment will be an employment termination payment (ETP) under section 82-130. 7. A payment made by the RLPA from the PRA to a Member more than 12 months after termination of their employment will not be an ETP under section 82-130. The payment will be assessable income of the Member under section 83-295. 8. A payment made by the RLPA from the PRA to a Member where the payment is an ETP, will not be classified as a fringe benefit under paragraph (Ic) of the definition of 'fringe benefit' in subsection 136(1) of the Fringe Benefits Tax Assessment Act 1986 (FBTAA). 9. A payment made by the RLPA from the PRA to a Member where the payment is not an ETP apart from paragraph 82-130(1)(b), will also not be classified as a fringe benefit under paragraph (Id) of the definition of 'fringe benefit' in subsection 136(1) of the FBTAA. 10. The following description of the scheme is based on information provided by the applicant. If the scheme is not carried out as described, this Ruling cannot be relied upon. 11. The RLPA was incorporated on 28 January 2009. 12. The RLPA changed its status from an incorporated association to a company limited by guarantee in 2015. 13. The RLPA is the collective representative body for male and female rugby league players participating in the National Rugby League competitions. It represents the players on all matters that affect them and protects and promotes their welfare and interests. 14. The RLPA was established to: 15. The RLPA is not formally registered as a trade union but is registered as a public company limited by guarantee. Constitution of Rugby League Players' Association Limited dated October 2018 16. The objects of the RLPA as outlined in clause 8 of its constitution are to: 17. Clause 6.1 of the constitution states: 18. Clause 6.2 of the constitution states: 19. The various classes of membership are outlined in clause 9 of the constitution. Membership must be approved by the board of the RLPA and is open to players contracted to play in various defined rugby league competitions around Australia. Collective bargaining agreement 20. Clause 3 of the collective bargaining agreement (CBA) (for the period 1 November 2022 to 31 October 2027) provides definitions of terms used within it, including: 21. For the purposes of the CBA, NRL refers to National Rugby League Limited. 22. As part of the CBA between National Rugby League Limited and the RLPA, the RLPA receives cash from National Rugby League Limited as part of its operations for the collective benefit of Members. 23. This money is used by the RLPA for a variety of purposes, including payments from the PRA to retiring Members, payments to support Member welfare, education and training and the administrative expenses of the RLPA. 24. Clause 58 of the CBA deals with the PRA as follows: 25. An RLPA Member's entitlement to a payment from the PRA is a legal entitlement under the CBA, not the employment contract. Establishment of the Rugby League Players' Association Player Retirement Account Initial operations 26. The RLPA have been managing the PRA since 18 October 2019, when funds in the PRA were transferred by National Rugby League Limited in line with the Transition Deed. 27. The PRA is only for the benefit of the RLPA members participating in the NRL. Administration of the Player Retirement Account 28. The PRA continues to be administered by the RLPA. 29. The amount received by the RLPA from National Rugby League Limited under the CBA and allocated by the RLPA to the PRA is invested by the RLPA and accrues income. 30. Market risk will continue to apply to investments. However, Members will recognise the RLPA will provide them an estimate of the balance within their Member's Account that is expected to be payable upon termination of their playing career. Receipt from the National Rugby League Limited 31. Players who are contracted to the Top 30 list or roster at each NRL club are eligible for a benefit from the Retirement Account. 32. Ownership of the PRA rests with the RLPA and the decision to allocate any amount to the Retirement Account is made by the RLPA. 33. The payment is made prior to the finalisation of Clubs' playing lists. 34. In effect there are 4 main Member movement finalisation dates: 35. Each of those first 30 Players contracted are eligible to receive a full benefit, notwithstanding that they may have been contracted at a later date in the season. 36. Where a Player's contract is terminated prior to the end of the season, he will accrue a pro rata amount based on 'time served' in that contract year. If the Player is then replaced by another Player, that new Player will also accrue a pro rata amount based on his time served in that contract year. 37. The contract year for a Player is 1 November to 31 October. 38. Where a Player is terminated but not replaced, the balance of his pro rata benefit is held in a contingency line which is managed by the RLPA, who manage and utilise it for extenuating circumstances (for example, a Player who is medically retired receives the full allocation with some or all of that coming from the contingency). 39. For each season that they are contracted as part of a Top 30 roster, a nominal contribution is allocated to a Member's account within the PRA once player lists have been finalised. This does not happen until the end of the financial year. 40. This means amounts received by the RLPA from the NRL can only be allocated to Members' accounts within the PRA at the conclusion of the season each year. 41. The receipt from the NRL is held by the RLPA in a separate account within the PRA until list finalisation for the season is complete. 42. Once list finalisation has been completed, the RLPA transfers the amount it has determined will be the annual PRA contribution to its investment manager for the PRA assets for its Members. Payment arrangements upon retirement 43. The RLPA has established internal rules, consistent with the general employment regime that applies in the NRL competition, to determine when a Member would be entitled to payment upon the Member's retirement from the NRL competition. 44. The internal rules provide that the payment will be made to a Member upon written confirmation of the Member's retirement and sign off by the PRA Committee (Committee), to ensure that the Member does not re-enter the NRL competition following the Member's retirement. 45. When a Member retires from his professional playing career and confirms this in writing to the RLPA, the Member makes an application to the RLPA for the payment of benefits from the PRA. 46. Upon the RLPA being satisfied the Member meets the criteria for payment in accordance with the PRA rules, the RLPA will provisionally approve the payment to the Member of the benefits accrued in his account, less applicable taxes. 47. At each Committee meeting governing the running of the PRA, the RLPA will provide the Committee with a summary of all applications received and provisionally approved for payment, since the last Committee meeting. 48. The Committee will then decide whether to approve these applications. In urgent cases where it is not possible to wait until the next Committee meeting, the Committee may approve an application (on a unanimous basis only) by circular resolution in writing. 49. There shall be no appeal from the decision of the Committee. 50. The Committee will confirm the Member has been delisted from an NRL Club List and not re-employed in the NRL system. 51. The balance that has accrued in the PRA for the Member's future benefit (that is, annual contributions plus any accumulated net investment earnings) will then be paid out, less tax withheld. 52. Payments made to Members from the PRA account will only be taxed at the time the Member receives the payment. Need for a payment upon National Rugby League playing career ending 53. The RLPA and the NRL recognise there is a continuing need for Members to access a payment upon the conclusion of their playing career. 54. The lump sum is to provide an immediate injection of cash upon retirement from playing to provide the Member with a cash sum to start his second career at the conclusion of his NRL playing days. 55. This is consistent with the Objects and Purpose of the RLPA as outlined in clause 8(i) of its constitution, to 'develop such arrangements, projects and schemes that will benefit the game of Rugby League and Players'. Application for early release due to hardship 56. The PRA Rules provide that [1] : 57. A Hardship Application may be made by an eligible person on the following grounds: Documents relevant to the scheme 58. The following documents are relevant for the purposes of the Scheme. Commissioner of Taxation 10 September 2025 Employment termination payment 59. Payments made in consequence of the termination of your employment are known as employment termination payments. 60. Subsection 995-1(1) states that the phrase 'employment termination payment' has the meaning given to it by section 82-130. 61. Subsection 82-130(1) states that a payment is an employment termination payment if: 62. All the conditions within subsection 82-130(1) need to be satisfied in order for a payment to be an ETP. Payments received 'in consequence of' the termination of employment 63. To be an ETP under subsection 82-130(1), the payment must be received by you: 64. The phrase 'in consequence of' is not defined within the ITAA 1997. However, the words have been interpreted by the courts in several cases. We have issued Taxation Ruling TR 2003/13 Income tax: employment termination payments (ETP): payments made in consequence of the termination of any employment: meaning of the phrase 'in consequence of' which explains our view on the meaning of the phrase 'in consequence of' as used in Subdivision 82-C. 65. The Full High Court of Australia considered the expression 'in consequence of the termination of any employment' in Reseck v Commissioner of Taxation (Cth) [1975] HCA 38 (Reseck). The relevant issue in that case was whether amounts paid to a taxpayer by his employer at the end of 2 periods of employment, to which the taxpayer was entitled under an agreement between the employer and the taxpayer's union, were an allowance paid in a lump sum 'in consequence of retirement from, or the termination of, any office or employment …'. Justice Gibbs concluded that the amounts were made in consequence of the termination of the taxpayer's employment. His Honour said that: 66. Justice Jacobs also concluded that the amounts constituted an allowance that was paid in consequence of the termination of the taxpayer's employment. His Honour said: 67. The different interpretations of 'in consequence of' adopted by Justices Gibbs and Jacobs were considered by the Full Federal Court in McIntosh, Charles v The Commissioner of Taxation [1979] FCA 65 ( McIntosh ). The matter before the court concerned a taxpayer who one week after retirement, commuted part of the pension to which he became entitled upon his retirement, into a lump sum. The commuted payment was made out of a provident fund established by a bank for the payment of benefits to bank officers on their retirement. The issue being considered by the court was whether the commuted lump sum payment came within former paragraph 26(d) of the Income Tax Assessment Act 1936. 68. Justice Brennan considered the judgments of Justices Gibbs and Jacobs in Reseck and concluded that their Honours were both saying that a causal nexus between the termination and payment was required, though it was not necessary for the termination to be the dominant cause of the payment. Justice Brennan said that: 69. In the same case, Justice Lockhart stated: 70. TR 2003/13 considers the divergent views as to the correct interpretation of the phrase 'in consequence of' as interpreted by the courts, and provides our view as to its interpretation. This is explained in paragraphs 5 to 7 of TR 2003/13: Retirement benefit payments made from the Player Retirement Account 71. Under the Scheme, for the purposes of retirement benefits, a Member is required to have retired as discussed in paragraphs 43 to 52 of this Ruling. At the time the retirement benefit is paid, the Member would be retired, which means a termination of their employment. A payment from the PRA to a Member upon their retirement follows as an effect of the termination of their employment and therefore is received 'in consequence of' the termination of their employment for the purposes of subparagraph 82-130(1)(a)(i). 72. Subparagraph 82-130(1)(a)(ii) states that a payment will also be an ETP where it is received by you after another person's death, in consequence of the termination of that other person's employment. 73. Under the scheme, a payment will satisfy the requirements of subparagraph 82-130(1)(a)(ii) where it has been made from the PRA after the death of a Member, in consequence of the termination of their employment. Where a Member was not engaged in employment at the time of their death, any payment received from the PRA will not be considered to be 'in consequence of' the termination of their employment and therefore will not be an ETP. 74. Note that where a Member receives a payment as a result of a Hardship Application prior to their retirement from professional rugby league as discussed in paragraph 57 of the Scheme, this is not a payment for the termination of the employment and therefore is not an ETP. Payments received no later than 12 months after the termination 75. To be an ETP under subsection 82-130(1), paragraph 82-130(1)(b) provides that the payment must be received by you no later than 12 months after the termination of your employment. This is unless an exemption applies under subsection 82-130(4). 76. Under subsection 82-130(4), an exemption to the 12-month rule will apply where: 77. Subsection 82-130(5) states that the Commissioner may make a determination that the 12-month rule does not apply to you. 78. Under the scheme, where a Member has received a payment from the PRA later than 12 months after the termination of their employment (by retirement), the Member would need to make an application based on their individual circumstances in order for this subsection to apply to them. 79. Subsection 82-130(7) states that the Commissioner may, by legislative instrument, make a determination that the 12-month rule does not apply. Payments made within 12 months of retirement 80. Payments made within 12 months of the Member's retirement will meet the requirements of paragraph 82-130(1)(b). Payments made more than 12 months after retirement 81. Payments made more than 12 months after the Member's retirement will not meet the requirement of 82-130(1)(b) of the ITAA where an exemption from the 12-month rule does not apply under subsection 82-130(4). 82. An exemption under subsection 82-130(4) does not apply as a determination has not been made by the Commissioner under subsection 82-130(5) or 82-130(7). 83. As such, these payments will be assessable income of the Member in the income year that they are received, under section 83-295. Payments that are not employment termination payments 84. To be an ETP under subsection 82-130(1), the payment must not be a payment mentioned within section 82-135. 85. Under the scheme, the payments made to Members who have retired, and which are paid from the PRA, would not be payments listed in section 82-135. Fringe benefits tax consequences 86. A number of specific benefits are not included in the definition of a fringe benefit and are therefore not subject to fringe benefits tax under the FBTAA. 87. The definition of a fringe benefit is included under subsection 136(1) of the FBTAA. 88. A fringe benefit does not include: Payments made within 12 months of retirement 89. Under the scheme, payments made within 12 months of the Member's retirement, will be excluded as a fringe benefit under paragraph (lc) of the definition of 'fringe benefit' in subsection 136(1) of the FBTAA, as they are ETPs. Payments made more than 12 months after retirement 90. Payments made more than 12 months after the retirement of the Member will be excluded as a fringe benefit under paragraph (ld) of the definition of 'fringe benefit' in subsection 136(1) of the FBTAA, as they would be ETPs, apart from paragraph 82-130(1)(b). © AUSTRALIAN TAXATION OFFICE FOR THE COMMONWEALTH OF AUSTRALIA You are free to copy, adapt, modify, transmit and distribute this material as you wish (but not in any way that suggests the ATO or the Commonwealth endorses you or any of your services or products).

Class of entities or scheme: 43. The RLPA has established internal rules, consistent with the general employment regime that applies in the NRL competition, to determine when a Member would be entitled to payment upon the Member's retirement from the NRL competition. 44. The internal rules provide that the payment will be made to a Member upon written confirmation of the Member's retirement and sign off by the PRA Committee (Committee), to ensure that the Member does not re-enter the NRL competition following the Member's retirement. 45. When a Member retires from his professional playing career and confirms this in writing to the RLPA, the Member makes an application to the RLPA for the payment of benefits from the PRA. 46. Upon the RLPA being satisfied the Member meets the criteria for payment in accordance with the PRA rules, the RLPA will provisionally approve the payment to the Member of the benefits accrued in his account, less applicable taxes. 47. At each Committee meeting governing the running of the PRA, the RLPA will provide the Committee with a summary of all applications received and provisionally approved for payment, since the last Committee meeting. 48. The Committee will then decide whether to approve these applications. In urgent cases where it is not possible to wait until the next Committee meeting, the Committee may approve an application (on a unanimous basis only) by circular resolution in writing. 49. There shall be no appeal from the decision of the Committee. 50. The Committee will confirm the Member has been delisted from an NRL Club List and not re-employed in the NRL system. 51. The balance that has accrued in the PRA for the Member's future benefit (that is, annual contributions plus any accumulated net investment earnings) will then be paid out, less tax withheld. 52. Payments made to Members from the PRA account will only be taxed at the time the Member receives the payment. | Need for a payment upon National Rugby League playing career ending: 53. The RLPA and the NRL recognise there is a continuing need for Members to access a payment upon the conclusion of their playing career. 54. The lump sum is to provide an immediate injection of cash upon retirement from playing to provide the Member with a cash sum to start his second career at the conclusion of his NRL playing days. 55. This is consistent with the Objects and Purpose of the RLPA as outlined in clause 8(i) of its constitution, to 'develop such arrangements, projects and schemes that will benefit the game of Rugby League and Players'. | Application for early release due to hardship: 56. The PRA Rules provide that [1] : 57. A Hardship Application may be made by an eligible person on the following grounds: | Documents relevant to the scheme: 58. The following documents are relevant for the purposes of the Scheme. Commissioner of Taxation 10 September 2025 | Employment termination payment: 59. Payments made in consequence of the termination of your employment are known as employment termination payments. 60. Subsection 995-1(1) states that the phrase 'employment termination payment' has the meaning given to it by section 82-130. 61. Subsection 82-130(1) states that a payment is an employment termination payment if: 62. All the conditions within subsection 82-130(1) need to be satisfied in order for a payment to be an ETP. | Payments received 'in consequence of' the termination of employment: 63. To be an ETP under subsection 82-130(1), the payment must be received by you: 64. The phrase 'in consequence of' is not defined within the ITAA 1997. However, the words have been interpreted by the courts in several cases. We have issued Taxation Ruling TR 2003/13 Income tax: employment termination payments (ETP): payments made in consequence of the termination of any employment: meaning of the phrase 'in consequence of' which explains our view on the meaning of the phrase 'in consequence of' as used in Subdivision 82-C. 65. The Full High Court of Australia considered the expression 'in consequence of the termination of any employment' in Reseck v Commissioner of Taxation (Cth) [1975] HCA 38 (Reseck). The relevant issue in that case was whether amounts paid to a taxpayer by his employer at the end of 2 periods of employment, to which the taxpayer was entitled under an agreement between the employer and the taxpayer's union, were an allowance paid in a lump sum 'in consequence of retirement from, or the termination of, any office or employment …'. Justice Gibbs concluded that the amounts were made in consequence of the termination of the taxpayer's employment. His Honour said that: 66. Justice Jacobs also concluded that the amounts constituted an allowance that was paid in consequence of the termination of the taxpayer's employment. His Honour said: 67. The different interpretations of 'in consequence of' adopted by Justices Gibbs and Jacobs were considered by the Full Federal Court in McIntosh, Charles v The Commissioner of Taxation [1979] FCA 65 ( McIntosh ). The matter before the court concerned a taxpayer who one week after retirement, commuted part of the pension to which he became entitled upon his retirement, into a lump sum. The commuted payment was made out of a provident fund established by a bank for the payment of benefits to bank officers on their retirement. The issue being considered by the court was whether the commuted lump sum payment came within former paragraph 26(d) of the Income Tax Assessment Act 1936. 68. Justice Brennan considered the judgments of Justices Gibbs and Jacobs in Reseck and concluded that their Honours were both saying that a causal nexus between the termination and payment was required, though it was not necessary for the termination to be the dominant cause of the payment. Justice Brennan said that: 69. In the same case, Justice Lockhart stated: 70. TR 2003/13 considers the divergent views as to the correct interpretation of the phrase 'in consequence of' as interpreted by the courts, and provides our view as to its interpretation. This is explained in paragraphs 5 to 7 of TR 2003/13: | Retirement benefit payments made from the Player Retirement Account: 71. Under the Scheme, for the purposes of retirement benefits, a Member is required to have retired as discussed in paragraphs 43 to 52 of this Ruling. At the time the retirement benefit is paid, the Member would be retired, which means a termination of their employment. A payment from the PRA to a Member upon their retirement follows as an effect of the termination of their employment and therefore is received 'in consequence of' the termination of their employment for the purposes of subparagraph 82-130(1)(a)(i). 72. Subparagraph 82-130(1)(a)(ii) states that a payment will also be an ETP where it is received by you after another person's death, in consequence of the termination of that other person's employment. 73. Under the scheme, a payment will satisfy the requirements of subparagraph 82-130(1)(a)(ii) where it has been made from the PRA after the death of a Member, in consequence of the termination of their employment. Where a Member was not engaged in employment at the time of their death, any payment received from the PRA will not be considered to be 'in consequence of' the termination of their employment and therefore will not be an ETP. 74. Note that where a Member receives a payment as a result of a Hardship Application prior to their retirement from professional rugby league as discussed in paragraph 57 of the Scheme, this is not a payment for the termination of the employment and therefore is not an ETP. Payments received no later than 12 months after the termination 75. To be an ETP under subsection 82-130(1), paragraph 82-130(1)(b) provides that the payment must be received by you no later than 12 months after the termination of your employment. This is unless an exemption applies under subsection 82-130(4). 76. Under subsection 82-130(4), an exemption to the 12-month rule will apply where: 77. Subsection 82-130(5) states that the Commissioner may make a determination that the 12-month rule does not apply to you. 78. Under the scheme, where a Member has received a payment from the PRA later than 12 months after the termination of their employment (by retirement), the Member would need to make an application based on their individual circumstances in order for this subsection to apply to them. 79. Subsection 82-130(7) states that the Commissioner may, by legislative instrument, make a determination that the 12-month rule does not apply. Payments made within 12 months of retirement 80. Payments made within 12 months of the Member's retirement will meet the requirements of paragraph 82-130(1)(b). Payments made more than 12 months after retirement 81. Payments made more than 12 months after the Member's retirement will not meet the requirement of 82-130(1)(b) of the ITAA where an exemption from the 12-month rule does not apply under subsection 82-130(4). 82. An exemption under subsection 82-130(4) does not apply as a determination has not been made by the Commissioner under subsection 82-130(5) or 82-130(7). 83. As such, these payments will be assessable income of the Member in the income year that they are received, under section 83-295. | Payments that are not employment termination payments: 84. To be an ETP under subsection 82-130(1), the payment must not be a payment mentioned within section 82-135. 85. Under the scheme, the payments made to Members who have retired, and which are paid from the PRA, would not be payments listed in section 82-135. | Fringe benefits tax consequences: 86. A number of specific benefits are not included in the definition of a fringe benefit and are therefore not subject to fringe benefits tax under the FBTAA. 87. The definition of a fringe benefit is included under subsection 136(1) of the FBTAA. 88. A fringe benefit does not include: | Payments made within 12 months of retirement: 89. Under the scheme, payments made within 12 months of the Member's retirement, will be excluded as a fringe benefit under paragraph (lc) of the definition of 'fringe benefit' in subsection 136(1) of the FBTAA, as they are ETPs. | Payments made more than 12 months after retirement: 90. Payments made more than 12 months after the retirement of the Member will be excluded as a fringe benefit under paragraph (ld) of the definition of 'fringe benefit' in subsection 136(1) of the FBTAA, as they would be ETPs, apart from paragraph 82-130(1)(b). © AUSTRALIAN TAXATION OFFICE FOR THE COMMONWEALTH OF AUSTRALIA You are free to copy, adapt, modify, transmit and distribute this material as you wish (but not in any way that suggests the ATO or the Commonwealth endorses you or any of your services or products).

Ruling: 1. This Ruling sets out the income tax and fringe benefits tax consequences of payments from the Player Retirement Account (PRA) received by National Rugby League (NRL) players (Players) who are members of the Rugby League Players' Association Limited (RLPA). 2. Details of this scheme are set out in paragraphs 10 to 58 of this Ruling. 3. All legislative references in this Ruling are to the Income Tax Assessment Act 1997, unless otherwise indicated. | Who this Ruling applies to: 4. This Ruling applies to you if you: | When this Ruling applies: 5. This Ruling applies from 1 July 2025 to 30 June 2030. 6. A payment made by the RLPA from the PRA to a Member within 12 months of termination of their employment will be an employment termination payment (ETP) under section 82-130. 7. A payment made by the RLPA from the PRA to a Member more than 12 months after termination of their employment will not be an ETP under section 82-130. The payment will be assessable income of the Member under section 83-295. 8. A payment made by the RLPA from the PRA to a Member where the payment is an ETP, will not be classified as a fringe benefit under paragraph (Ic) of the definition of 'fringe benefit' in subsection 136(1) of the Fringe Benefits Tax Assessment Act 1986 (FBTAA). 9. A payment made by the RLPA from the PRA to a Member where the payment is not an ETP apart from paragraph 82-130(1)(b), will also not be classified as a fringe benefit under paragraph (Id) of the definition of 'fringe benefit' in subsection 136(1) of the FBTAA. 10. The following description of the scheme is based on information provided by the applicant. If the scheme is not carried out as described, this Ruling cannot be relied upon. 11. The RLPA was incorporated on 28 January 2009. 12. The RLPA changed its status from an incorporated association to a company limited by guarantee in 2015. 13. The RLPA is the collective representative body for male and female rugby league players participating in the National Rugby League competitions. It represents the players on all matters that affect them and protects and promotes their welfare and interests. 14. The RLPA was established to: 15. The RLPA is not formally registered as a trade union but is registered as a public company limited by guarantee. | Constitution of Rugby League Players' Association Limited dated October 2018: 16. The objects of the RLPA as outlined in clause 8 of its constitution are to: 17. Clause 6.1 of the constitution states: 18. Clause 6.2 of the constitution states: 19. The various classes of membership are outlined in clause 9 of the constitution. Membership must be approved by the board of the RLPA and is open to players contracted to play in various defined rugby league competitions around Australia. | Collective bargaining agreement: 20. Clause 3 of the collective bargaining agreement (CBA) (for the period 1 November 2022 to 31 October 2027) provides definitions of terms used within it, including: 21. For the purposes of the CBA, NRL refers to National Rugby League Limited. 22. As part of the CBA between National Rugby League Limited and the RLPA, the RLPA receives cash from National Rugby League Limited as part of its operations for the collective benefit of Members. 23. This money is used by the RLPA for a variety of purposes, including payments from the PRA to retiring Members, payments to support Member welfare, education and training and the administrative expenses of the RLPA. 24. Clause 58 of the CBA deals with the PRA as follows: 25. An RLPA Member's entitlement to a payment from the PRA is a legal entitlement under the CBA, not the employment contract. | Initial operations: 26. The RLPA have been managing the PRA since 18 October 2019, when funds in the PRA were transferred by National Rugby League Limited in line with the Transition Deed. 27. The PRA is only for the benefit of the RLPA members participating in the NRL. | Administration of the Player Retirement Account: 28. The PRA continues to be administered by the RLPA. 29. The amount received by the RLPA from National Rugby League Limited under the CBA and allocated by the RLPA to the PRA is invested by the RLPA and accrues income. 30. Market risk will continue to apply to investments. However, Members will recognise the RLPA will provide them an estimate of the balance within their Member's Account that is expected to be payable upon termination of their playing career. | Receipt from the National Rugby League Limited: 31. Players who are contracted to the Top 30 list or roster at each NRL club are eligible for a benefit from the Retirement Account. 32. Ownership of the PRA rests with the RLPA and the decision to allocate any amount to the Retirement Account is made by the RLPA. 33. The payment is made prior to the finalisation of Clubs' playing lists. 34. In effect there are 4 main Member movement finalisation dates: 35. Each of those first 30 Players contracted are eligible to receive a full benefit, notwithstanding that they may have been contracted at a later date in the season. 36. Where a Player's contract is terminated prior to the end of the season, he will accrue a pro rata amount based on 'time served' in that contract year. If the Player is then replaced by another Player, that new Player will also accrue a pro rata amount based on his time served in that contract year. 37. The contract year for a Player is 1 November to 31 October. 38. Where a Player is terminated but not replaced, the balance of his pro rata benefit is held in a contingency line which is managed by the RLPA, who manage and utilise it for extenuating circumstances (for example, a Player who is medically retired receives the full allocation with some or all of that coming from the contingency). 39. For each season that they are contracted as part of a Top 30 roster, a nominal contribution is allocated to a Member's account within the PRA once player lists have been finalised. This does not happen until the end of the financial year. 40. This means amounts received by the RLPA from the NRL can only be allocated to Members' accounts within the PRA at the conclusion of the season each year. 41. The receipt from the NRL is held by the RLPA in a separate account within the PRA until list finalisation for the season is complete. 42. Once list finalisation has been completed, the RLPA transfers the amount it has determined will be the annual PRA contribution to its investment manager for the PRA assets for its Members. | Payment arrangements upon retirement: 43. The RLPA has established internal rules, consistent with the general employment regime that applies in the NRL competition, to determine when a Member would be entitled to payment upon the Member's retirement from the NRL competition. 44. The internal rules provide that the payment will be made to a Member upon written confirmation of the Member's retirement and sign off by the PRA Committee (Committee), to ensure that the Member does not re-enter the NRL competition following the Member's retirement. 45. When a Member retires from his professional playing career and confirms this in writing to the RLPA, the Member makes an application to the RLPA for the payment of benefits from the PRA. 46. Upon the RLPA being satisfied the Member meets the criteria for payment in accordance with the PRA rules, the RLPA will provisionally approve the payment to the Member of the benefits accrued in his account, less applicable taxes. 47. At each Committee meeting governing the running of the PRA, the RLPA will provide the Committee with a summary of all applications received and provisionally approved for payment, since the last Committee meeting. 48. The Committee will then decide whether to approve these applications. In urgent cases where it is not possible to wait until the next Committee meeting, the Committee may approve an application (on a unanimous basis only) by circular resolution in writing. 49. There shall be no appeal from the decision of the Committee. 50. The Committee will confirm the Member has been delisted from an NRL Club List and not re-employed in the NRL system. 51. The balance that has accrued in the PRA for the Member's future benefit (that is, annual contributions plus any accumulated net investment earnings) will then be paid out, less tax withheld. 52. Payments made to Members from the PRA account will only be taxed at the time the Member receives the payment. | Need for a payment upon National Rugby League playing career ending: 53. The RLPA and the NRL recognise there is a continuing need for Members to access a payment upon the conclusion of their playing career. 54. The lump sum is to provide an immediate injection of cash upon retirement from playing to provide the Member with a cash sum to start his second career at the conclusion of his NRL playing days. 55. This is consistent with the Objects and Purpose of the RLPA as outlined in clause 8(i) of its constitution, to 'develop such arrangements, projects and schemes that will benefit the game of Rugby League and Players'. | Application for early release due to hardship: 56. The PRA Rules provide that [1] : 57. A Hardship Application may be made by an eligible person on the following grounds: | Documents relevant to the scheme: 58. The following documents are relevant for the purposes of the Scheme. Commissioner of Taxation 10 September 2025 | Employment termination payment: 59. Payments made in consequence of the termination of your employment are known as employment termination payments. 60. Subsection 995-1(1) states that the phrase 'employment termination payment' has the meaning given to it by section 82-130. 61. Subsection 82-130(1) states that a payment is an employment termination payment if: 62. All the conditions within subsection 82-130(1) need to be satisfied in order for a payment to be an ETP. | Payments received 'in consequence of' the termination of employment: 63. To be an ETP under subsection 82-130(1), the payment must be received by you: 64. The phrase 'in consequence of' is not defined within the ITAA 1997. However, the words have been interpreted by the courts in several cases. We have issued Taxation Ruling TR 2003/13 Income tax: employment termination payments (ETP): payments made in consequence of the termination of any employment: meaning of the phrase 'in consequence of' which explains our view on the meaning of the phrase 'in consequence of' as used in Subdivision 82-C. 65. The Full High Court of Australia considered the expression 'in consequence of the termination of any employment' in Reseck v Commissioner of Taxation (Cth) [1975] HCA 38 (Reseck). The relevant issue in that case was whether amounts paid to a taxpayer by his employer at the end of 2 periods of employment, to which the taxpayer was entitled under an agreement between the employer and the taxpayer's union, were an allowance paid in a lump sum 'in consequence of retirement from, or the termination of, any office or employment …'. Justice Gibbs concluded that the amounts were made in consequence of the termination of the taxpayer's employment. His Honour said that: 66. Justice Jacobs also concluded that the amounts constituted an allowance that was paid in consequence of the termination of the taxpayer's employment. His Honour said: 67. The different interpretations of 'in consequence of' adopted by Justices Gibbs and Jacobs were considered by the Full Federal Court in McIntosh, Charles v The Commissioner of Taxation [1979] FCA 65 ( McIntosh ). The matter before the court concerned a taxpayer who one week after retirement, commuted part of the pension to which he became entitled upon his retirement, into a lump sum. The commuted payment was made out of a provident fund established by a bank for the payment of benefits to bank officers on their retirement. The issue being considered by the court was whether the commuted lump sum payment came within former paragraph 26(d) of the Income Tax Assessment Act 1936. 68. Justice Brennan considered the judgments of Justices Gibbs and Jacobs in Reseck and concluded that their Honours were both saying that a causal nexus between the termination and payment was required, though it was not necessary for the termination to be the dominant cause of the payment. Justice Brennan said that: 69. In the same case, Justice Lockhart stated: 70. TR 2003/13 considers the divergent views as to the correct interpretation of the phrase 'in consequence of' as interpreted by the courts, and provides our view as to its interpretation. This is explained in paragraphs 5 to 7 of TR 2003/13: | Retirement benefit payments made from the Player Retirement Account: 71. Under the Scheme, for the purposes of retirement benefits, a Member is required to have retired as discussed in paragraphs 43 to 52 of this Ruling. At the time the retirement benefit is paid, the Member would be retired, which means a termination of their employment. A payment from the PRA to a Member upon their retirement follows as an effect of the termination of their employment and therefore is received 'in consequence of' the termination of their employment for the purposes of subparagraph 82-130(1)(a)(i). 72. Subparagraph 82-130(1)(a)(ii) states that a payment will also be an ETP where it is received by you after another person's death, in consequence of the termination of that other person's employment. 73. Under the scheme, a payment will satisfy the requirements of subparagraph 82-130(1)(a)(ii) where it has been made from the PRA after the death of a Member, in consequence of the termination of their employment. Where a Member was not engaged in employment at the time of their death, any payment received from the PRA will not be considered to be 'in consequence of' the termination of their employment and therefore will not be an ETP. 74. Note that where a Member receives a payment as a result of a Hardship Application prior to their retirement from professional rugby league as discussed in paragraph 57 of the Scheme, this is not a payment for the termination of the employment and therefore is not an ETP. Payments received no later than 12 months after the termination 75. To be an ETP under subsection 82-130(1), paragraph 82-130(1)(b) provides that the payment must be received by you no later than 12 months after the termination of your employment. This is unless an exemption applies under subsection 82-130(4). 76. Under subsection 82-130(4), an exemption to the 12-month rule will apply where: 77. Subsection 82-130(5) states that the Commissioner may make a determination that the 12-month rule does not apply to you. 78. Under the scheme, where a Member has received a payment from the PRA later than 12 months after the termination of their employment (by retirement), the Member would need to make an application based on their individual circumstances in order for this subsection to apply to them. 79. Subsection 82-130(7) states that the Commissioner may, by legislative instrument, make a determination that the 12-month rule does not apply. Payments made within 12 months of retirement 80. Payments made within 12 months of the Member's retirement will meet the requirements of paragraph 82-130(1)(b). Payments made more than 12 months after retirement 81. Payments made more than 12 months after the Member's retirement will not meet the requirement of 82-130(1)(b) of the ITAA where an exemption from the 12-month rule does not apply under subsection 82-130(4). 82. An exemption under subsection 82-130(4) does not apply as a determination has not been made by the Commissioner under subsection 82-130(5) or 82-130(7). 83. As such, these payments will be assessable income of the Member in the income year that they are received, under section 83-295. | Payments that are not employment termination payments: 84. To be an ETP under subsection 82-130(1), the payment must not be a payment mentioned within section 82-135. 85. Under the scheme, the payments made to Members who have retired, and which are paid from the PRA, would not be payments listed in section 82-135. | Fringe benefits tax consequences: 86. A number of specific benefits are not included in the definition of a fringe benefit and are therefore not subject to fringe benefits tax under the FBTAA. 87. The definition of a fringe benefit is included under subsection 136(1) of the FBTAA. 88. A fringe benefit does not include: | Payments made within 12 months of retirement: 89. Under the scheme, payments made within 12 months of the Member's retirement, will be excluded as a fringe benefit under paragraph (lc) of the definition of 'fringe benefit' in subsection 136(1) of the FBTAA, as they are ETPs. | Payments made more than 12 months after retirement: 90. Payments made more than 12 months after the retirement of the Member will be excluded as a fringe benefit under paragraph (ld) of the definition of 'fringe benefit' in subsection 136(1) of the FBTAA, as they would be ETPs, apart from paragraph 82-130(1)(b). © AUSTRALIAN TAXATION OFFICE FOR THE COMMONWEALTH OF AUSTRALIA You are free to copy, adapt, modify, transmit and distribute this material as you wish (but not in any way that suggests the ATO or the Commonwealth endorses you or any of your services or products).


Appendix: Employment termination payment: 59. Payments made in consequence of the termination of your employment are known as employment termination payments. 60. Subsection 995-1(1) states that the phrase 'employment termination payment' has the meaning given to it by section 82-130. 61. Subsection 82-130(1) states that a payment is an employment termination payment if: 62. All the conditions within subsection 82-130(1) need to be satisfied in order for a payment to be an ETP. | Payments received 'in consequence of' the termination of employment: 63. To be an ETP under subsection 82-130(1), the payment must be received by you: 64. The phrase 'in consequence of' is not defined within the ITAA 1997. However, the words have been interpreted by the courts in several cases. We have issued Taxation Ruling TR 2003/13 Income tax: employment termination payments (ETP): payments made in consequence of the termination of any employment: meaning of the phrase 'in consequence of' which explains our view on the meaning of the phrase 'in consequence of' as used in Subdivision 82-C. 65. The Full High Court of Australia considered the expression 'in consequence of the termination of any employment' in Reseck v Commissioner of Taxation (Cth) [1975] HCA 38 (Reseck). The relevant issue in that case was whether amounts paid to a taxpayer by his employer at the end of 2 periods of employment, to which the taxpayer was entitled under an agreement between the employer and the taxpayer's union, were an allowance paid in a lump sum 'in consequence of retirement from, or the termination of, any office or employment …'. Justice Gibbs concluded that the amounts were made in consequence of the termination of the taxpayer's employment. His Honour said that: 66. Justice Jacobs also concluded that the amounts constituted an allowance that was paid in consequence of the termination of the taxpayer's employment. His Honour said: 67. The different interpretations of 'in consequence of' adopted by Justices Gibbs and Jacobs were considered by the Full Federal Court in McIntosh, Charles v The Commissioner of Taxation [1979] FCA 65 ( McIntosh ). The matter before the court concerned a taxpayer who one week after retirement, commuted part of the pension to which he became entitled upon his retirement, into a lump sum. The commuted payment was made out of a provident fund established by a bank for the payment of benefits to bank officers on their retirement. The issue being considered by the court was whether the commuted lump sum payment came within former paragraph 26(d) of the Income Tax Assessment Act 1936. 68. Justice Brennan considered the judgments of Justices Gibbs and Jacobs in Reseck and concluded that their Honours were both saying that a causal nexus between the termination and payment was required, though it was not necessary for the termination to be the dominant cause of the payment. Justice Brennan said that: 69. In the same case, Justice Lockhart stated: 70. TR 2003/13 considers the divergent views as to the correct interpretation of the phrase 'in consequence of' as interpreted by the courts, and provides our view as to its interpretation. This is explained in paragraphs 5 to 7 of TR 2003/13: | Retirement benefit payments made from the Player Retirement Account: 71. Under the Scheme, for the purposes of retirement benefits, a Member is required to have retired as discussed in paragraphs 43 to 52 of this Ruling. At the time the retirement benefit is paid, the Member would be retired, which means a termination of their employment. A payment from the PRA to a Member upon their retirement follows as an effect of the termination of their employment and therefore is received 'in consequence of' the termination of their employment for the purposes of subparagraph 82-130(1)(a)(i). 72. Subparagraph 82-130(1)(a)(ii) states that a payment will also be an ETP where it is received by you after another person's death, in consequence of the termination of that other person's employment. 73. Under the scheme, a payment will satisfy the requirements of subparagraph 82-130(1)(a)(ii) where it has been made from the PRA after the death of a Member, in consequence of the termination of their employment. Where a Member was not engaged in employment at the time of their death, any payment received from the PRA will not be considered to be 'in consequence of' the termination of their employment and therefore will not be an ETP. 74. Note that where a Member receives a payment as a result of a Hardship Application prior to their retirement from professional rugby league as discussed in paragraph 57 of the Scheme, this is not a payment for the termination of the employment and therefore is not an ETP. Payments received no later than 12 months after the termination 75. To be an ETP under subsection 82-130(1), paragraph 82-130(1)(b) provides that the payment must be received by you no later than 12 months after the termination of your employment. This is unless an exemption applies under subsection 82-130(4). 76. Under subsection 82-130(4), an exemption to the 12-month rule will apply where: 77. Subsection 82-130(5) states that the Commissioner may make a determination that the 12-month rule does not apply to you. 78. Under the scheme, where a Member has received a payment from the PRA later than 12 months after the termination of their employment (by retirement), the Member would need to make an application based on their individual circumstances in order for this subsection to apply to them. 79. Subsection 82-130(7) states that the Commissioner may, by legislative instrument, make a determination that the 12-month rule does not apply. Payments made within 12 months of retirement 80. Payments made within 12 months of the Member's retirement will meet the requirements of paragraph 82-130(1)(b). Payments made more than 12 months after retirement 81. Payments made more than 12 months after the Member's retirement will not meet the requirement of 82-130(1)(b) of the ITAA where an exemption from the 12-month rule does not apply under subsection 82-130(4). 82. An exemption under subsection 82-130(4) does not apply as a determination has not been made by the Commissioner under subsection 82-130(5) or 82-130(7). 83. As such, these payments will be assessable income of the Member in the income year that they are received, under section 83-295. | Payments that are not employment termination payments: 84. To be an ETP under subsection 82-130(1), the payment must not be a payment mentioned within section 82-135. 85. Under the scheme, the payments made to Members who have retired, and which are paid from the PRA, would not be payments listed in section 82-135. | Fringe benefits tax consequences: 86. A number of specific benefits are not included in the definition of a fringe benefit and are therefore not subject to fringe benefits tax under the FBTAA. 87. The definition of a fringe benefit is included under subsection 136(1) of the FBTAA. 88. A fringe benefit does not include: | Payments made within 12 months of retirement: 89. Under the scheme, payments made within 12 months of the Member's retirement, will be excluded as a fringe benefit under paragraph (lc) of the definition of 'fringe benefit' in subsection 136(1) of the FBTAA, as they are ETPs. | Payments made more than 12 months after retirement: 90. Payments made more than 12 months after the retirement of the Member will be excluded as a fringe benefit under paragraph (ld) of the definition of 'fringe benefit' in subsection 136(1) of the FBTAA, as they would be ETPs, apart from paragraph 82-130(1)(b). © AUSTRALIAN TAXATION OFFICE FOR THE COMMONWEALTH OF AUSTRALIA You are free to copy, adapt, modify, transmit and distribute this material as you wish (but not in any way that suggests the ATO or the Commonwealth endorses you or any of your services or products).


What this Ruling is about | If this Ruling applies to you, and you correctly rely on it, we will apply the law to you in the way set out in this Ruling. That is, you will not pay any more tax or penalties or interest in respect of the matters covered by this Ruling. | The Company must not make any distribution of profits to Members, whether by way of dividend, or surplus on winding up. | If the Company is wound up or dissolved, the assets and property available for distribution after satisfaction of all debts and liabilities are to be given or transferred to some other institution or institutions having objects similar to the purposes of the Company. | ARLC means the Australian Rugby League Commission | Player means a player of Rugby League who is either: | Total Player Payments or TPP means the total payments to Players as set out in clause 12.7 and outlined in more detail in Schedule 1. | 58.1 The Parties agree that the Retirement Account will be funded from the TPP at the minimum amounts as set out in Schedule 1. | 58.2 The NRL shall make the payments of the amounts set out in Schedule 1 to the RLPA by 30 November each Season, to be deposited into the Retirement Account for the benefit of Players contracted to a Club's Top 30 ( Retirement Account Contribution ). | 58.4 No adjustment will be made to the risk profile and investment principles, strategy and framework of the Retirement Account without the mutual agreement of the Parties. For clarity, this includes the principle that all Players be treated equally in the Retirement Account and that the investment criteria has a low risk profile. | 58.5 The Parties agree to review the existing Retirement Account Rules and agree any amendments by no later than 30 April 2024 (unless otherwise agreed). The updated Retirement Account Rules will be included as a Schedule to this Agreement once finalised. | 58.6 The Parties agree that the RLPA will manage the day-to-day operation, resourcing and administration of the Retirement Account in accordance with the Retirement Account Rules. | 58.7 The RLPA will be entitled to reasonable expense costs paid to third party advisors associated with the proper management and regulatory compliance of the Retirement Account, with such costs to be deducted from the Retirement Account fund. This may include audit costs and accounting, taxation and investment advice. | 58.8 The RLPA will provide the ARLC with an annual report including management accounts and an auditors report, on the performance of the Retirement Account (including total sums in and out of the Retirement Account) for the previous Season and compliance with the Retirement Account Rules by 30 November each year. Audited Accounts will be provided following the completion of the RLPA's AGM each year. | … an Eligible Person may make an application requesting payment of some or all of the benefit accrued to him, prior to him retiring from professional rugby league, where he is suffering demonstrated hardship (Hardship Application). | (b) it is received no later than 12 months after that termination (but see subsection (4)); and | (c) it is not a payment mentioned in section 82-135. | Within the ordinary meaning of the words a sum is paid in consequence of the termination of employment when the payment follows as an effect or result of the termination … It is not in my opinion necessary that the termination of the services should be the dominant cause of the payment … In the present case the allowance was paid in consequence of a number of circumstances, including the fact that the taxpayer's service had been satisfactory and that the industrial agreements provided for the payment, but it was none the less paid in consequence of the termination of the taxpayer's employment. | It was submitted that the words "in consequence of" import a concept that the termination of the employment was the dominant cause of the payment. This cannot be so. A consequence in this context is not the same as a result. It does not import causation but rather a "following on". | Though Jacobs J. speaks in different terms, his meaning may not be significantly different from the meaning of Gibbs J … His Honour denies the necessity to show that retirement is the dominant cause, but he does not allow a temporal sequence alone to suffice as the nexus. Though the language of causation often contains the seeds of confusion, I apprehend his Honour to hold the required nexus to be (at least) that the payment would not have been made but for the retirement. | In my opinion, although the phrase is sufficiently wide to include a payment caused by the retirement of the taxpayer, it is not confined to such a payment. The phrase requires that there be a connection between the payment and the retirement of the taxpayer, the act of retirement being either a cause or an antecedent of the payment. The phrase used in [section 26(d)] is not "caused by" but "in consequence of". It has a wider connotation than causation and assumes a connection between the circumstance of retirement and the act of payment such that the payment can be said to be a "following on" of the retirement. | 5. … the Commissioner considers that a payment is received by a taxpayer in consequence of the termination of the taxpayer's employment if the payment 'follows as an effect or result of' the termination. In other words, but for the termination of employment, the payment would not have been received by the taxpayer. | 6. The phrase requires a causal connection between the termination and the payment, although the termination need not be the dominant cause of the payment. The question of whether a payment is received in consequence of the termination of employment will be determined by the relevant facts and circumstances of each case. | 7. The greater the length of time between the termination of employment and the payment, the more likely that the causal connection between the termination and the payment will be too remote for a conclusion that a payment was received in consequence of the termination of employment. However, length of time will not be determinative when there is a presently existing right to payment of the amount at the time of termination. | (lc) an employment termination payment (within the meaning of the Income Tax Assessment Act 1997 ); or | (ld) a payment that would be an employment termination payment (within the meaning of the Income Tax Assessment Act 1997 ) apart from paragraph 82-130(1)(b) of that Act.


Related rulings: TR 2003/13
Legislative references: ITAA 1936 former 26(d) ITAA 1997 Subdiv 82-C ITAA 1997 82-130 ITAA 1997 82-130(1) ITAA 1997 82-130(1)(a)(i) ITAA 1997 82-130(1)(a)(ii) ITAA 1997 82-130(1)(b) ITAA 1997 82-130(4) ITAA 1997 82-130(5) ITAA 1997 82-130(7) ITAA 1997 82-135 ITAA 1997 83-295 ITAA 1997 995-1(1) FBTAA 1986 136(1)
Case references: Reseck v Commissioner of Taxation (Cth) [1975] HCA 38 133 CLR 45 75 ATC 4213 5 ATR 538 49 ALJR 317 6 ALR 642