Chiefs’ advantage? All tax-free
WHILE PNG Chiefs will be required to follow the same NRL salary cap and player contract rules as every other team, the major difference is a Government-backed tax-free salary incentive for players, coaches and club officials.
For the 2027 season, the NRL has officially confirmed a Top 30 salary cap per club of A$12.1 million (K37.91 million). The 2028 wage category has not been announced, although commentators estimate it could exceed A$12.5 million (K39.17 million) when the Chiefs enter the NRL competition. The 2028 figure will likely be determined in the next Collective Bargaining Agreement (CBA) between NRL and the Rugby League Players Association (RLPA).
Despite speculation, the Chiefs will not receive an exemption from the NRL salary cap.
Like every club, all player contracts must be lodged with the NRL and counted under the salary cap system. The cap remains one of the competition’s main tools to ensure fairness and prevent clubs from stockpiling talent.
However, what makes the Chiefs different is that eligible players and staff based in PNG are expected to receive their earnings tax-free under arrangements supported by the PNG and Australian governments.
The Chiefs’ biggest recruitment weapon may not be offering larger contracts. Instead, players could keep significantly more of their earnings compared to players at other NRL clubs because their income would not be reduced by tax in the same way.
Reports indicate that marque signing Jarome Luai’s deal is worth about A$1.2 million (K3.76 million) per season, making him one of the highest-profile recruits for the expansion side.
His signing highlights financial appeal the Chiefs can offer while still operating within NRL regulations.
Although the Chiefs have not released official salary figures, NRL roster structures suggest the club will likely follow a similar pay model to other teams:
- MARQUEE stars could earn more than A$1 million per season;
- REPRESENTATIVE and Origin-calibre players are likely to command the highest salaries below marquee level;
- ESTABLISHED first-graders would sit in the middle tier; and
- DEVELOPMENT and emerging players would earn smaller contracts while building their careers.
Actual salaries will depend on individual negotiations and salary-cap management, not on a fixed club pay scale. The tax-free arrangement is not limited to players.
The Chiefs will not be allowed to spend more than rival NRL clubs under the salary cap, but by offering tax-free earnings to eligible players and staff, the franchise could provide a stronger financial outcome than rival clubs.
Despite tax-free earnings have been confirmed by both governments (PNG and Australia) a player’s final financial benefit will depend on residency arrangements, contract structures and applicable tax laws.
