The AAA argue the changes, which will from next year remove the ability of athletes to reduce their tax bill by putting a portion of earnings — for work related to image rights, sponsorships, marketing and the like — into a trust or company, will have major impacts on Australian sport.

The removal of what has been dubbed a “superstar tax” could not only cost major sporting stars in all codes five and six-figures sums, it could also threaten the careers of on Olympic athletes only just getting by, the AAA say.

By removing any tax breaks for athletes in Australia, the added fear is that up against countries that give generous tax dispensations for sports people, competitions like the A-League may struggle to ever lure another global superstar like Alessandro Del Pierro to play here.

The Wallabies could also see many more major stars depart for overseas to countries like France, England and Ireland, which have structurally favourable tax systems for athletes.

Currently in Australia an athlete can licence their image rights to a company or trust, and that company can pay a tax rate of 27% on any image-related income.

That basically covers the percentage of work done (as agreed by the ATO) by an athlete that relates to the use of their personal image and star power — and not their physical, on-field talents. In today’s media-rich world, that is an increasingly prominent role.

But Morrison’s proposed changes mean an athlete will, from next year, have to pay personal income tax for everything, attracting up to 47.5% tax for the high earners.

AAA general secretary Jacob Holmes — the AAA is the umbrella alliance of the players’ unions of most major sports in Australia including AFL, cricket, league, union and football — said the changes would have widespread impacts. The group met in Sydney on Thursday to discuss the matter.

“Australian sports compete in a global marketplace for talent and this decision, if followed through, would hurt their viability and significantly impact on many athletes’ livelihoods​,” Holmes said in a release. ​

“Australian athletes are not covered by workers compensation, have limited protection against people using their name and image, and are often required to sign away their basic legal rights just to compete​.

​

“This decision would remove a modest, but individually vital, tax relief only placing our competitions, clubs and athletes further behind.”

“Modern day sport is big business, so it’s important that the image rights of those putting on the show are protected​.

“If carried through, this decision would be felt by all athletes. Those who invest so much to compete at the highest level, and the ones we enjoy watching in sporting arenas around the country or on the many and varied digital platforms availabl​e. ​

“The impact won’t be limited to high profile athletes. It will also affect athletes receiving low or modest incomes from their sports who may otherwise be unable to sustain semi-professionalism or professionalism by licensing their image to an entity in the future”.

Holmes said the announcement had “blindsided” the AAA​. ​

“It would seem the consequences of the tax policy haven’t been fully considered and we seek to meet with the Treasurer and other government representatives to provide insights into the significant impacts of the proposed changes.”