It was the sweetener to sign NRL players to the competition\u2019s 19th team and lure them to Papua New Guinea.<\/p>\n
And now the federal government has revealed how much it will lose in tax revenue by allowing the NRL to sign players to tax-free contracts.<\/p>\n
\u201cThe government will amend the tax law to ensure that income tax exemptions provided by Papua New Guinea for players and staff of the PNG Chiefs National Rugby League team operate as intended. This will decrease receipts by $5.4m over four years from 2026\u201327,\u201d budget papers noted on Tuesday.<\/p>\n
Wests Tigers captain Jarome Luai and South Sydney scoring machine Alex Johnston are the first two key signings to the Chiefs, with club bosses expected to sign more players ahead of the team\u2019s 2028 season debut.<\/p>\n
Under Australian tax rules, Luai takes home around $650,000 of his $1.2 million contract at the Tigers, but he will pocket the entire salary when at the Chiefs.<\/p>\n
Code Sports reported clubs are \u201cpissed off\u201d about the tax-free dollars PNG can offer, with once CEO predicting the situation would deteriorate into a \u201csh*t fight\u201d.<\/p>\n
NRL boss Peter V\u2019landys has confirmed the Chiefs won\u2019t pay tax for at least their first 10 years, as part of the federal government\u2019s $600 million investment to set up a team in PNG.<\/p>\n
Chiefs general manager of football Michael Chammas said Luai, the team\u2019s inaugural signing, would send a strong message to the rest of the competition.<\/p>\n
\u201cOff the field, the significance is even greater,\u201d he said.<\/p>\n
\u201cJarome Luai in a PNG Chiefs jersey is a cultural moment for our nation. Rugby league is everything to our people, and a player of his standing choosing PNG will resonate far beyond the sport. It will inspire a generation.<\/p>\n
Separately, Perth Bears, who will enter the competition in 2027, have not yet signed a marquee player to their list.<\/p>\n
Chammas believed the Bears will thrive in the west despite the challenges they are facing.<\/p>\n
\u201cWe have our own challenges around being so far away from Sydney and Brisbane, and they\u2019re going to have some logistical challenges being five or six hours away,\u201d he said.<\/p>\n
\u201cBut we know that with (Bears coach) Mal Meninga at the helm, they\u2019ll build a strong roster. They\u2019re coming in a year before us, so we hope they have success and we hope we fall on the back of it. The game needs success.\u201d<\/p>\n