Athletes and Celebrities to be hit with “Fame Tax”
IN yesterdays federal budget a ‘fame tax’ was announced to make sure high paid athletes and celebrities who licence their image rights under a company or business will pay tax on all the income and non-cash benefits they receive.
High profile athletes and celebrities currently have the ability to license their name and image to a business, which can contract work on their behalf whilst they receive a salary.
At present Companies pay 30% tax, but only on profits, So if they claim their expenses as a business cost, the result could mean they pay very little or no tax.
The money raised from the change is “unquantifiable”, the budget said.