The AFL salary cap: how it works and what it means for player pay
Understand the AFL salary cap – a team-level limit on player payments. See how it compares to the national earnings index and what it means for gross pay, super, and tax.
The AFL salary cap is a team-level constraint, not an individual salary; average player earnings are well above the national line (index 100), but precise figures vary widely and are not publicly disclosed per player.
What is the AFL salary cap?
The AFL salary cap is a limit on the total amount each club can pay its players in a given year. It is set by the collective bargaining agreement (CBA) between the AFL and the AFL Players' Association. The cap applies to all football payments, including base salary, match payments, signing bonuses, and certain allowances. It is a gross figure – before tax and other deductions – and is designed to promote competitive balance across the competition.
Under the current CBA (2023–2027), each club has a Total AFL Player Payments limit, detailed in Schedule 2A of the agreement. Clubs must spend at least 95% of the combined cap and Additional Services Agreements limit each year. They can also carry forward underspend from previous years to overspend up to 105% in a given season.
How does the salary cap relate to gross pay, super, and tax?
The cap covers gross payments to players. That means the amounts quoted in contracts are before income tax and the Medicare levy. Players are employees, so clubs withhold PAYG tax and pay superannuation guarantee on top of the gross salary. From 1 July 2026, the super guarantee rate is 12% of ordinary time earnings, up to the maximum contribution base of $270,830. The super contribution is an additional cost for clubs and is generally included within the cap as part of total player payments.
For a player earning $400,000 gross, the club would also need to contribute $48,000 in super (if the full amount is within the cap). The player's take-home pay after tax (assuming no HELP or other deductions) would be roughly $270,000, depending on their tax bracket and the Medicare levy.
The soft cap: a separate limit for football departments
In addition to the player salary cap, the AFL imposes a 'soft cap' on total football department spending. This covers coaches, analysts, fitness staff, and other support personnel. The soft cap was cut during COVID-19 but has been gradually increased. From 2025 to 2027, the AFL soft cap will rise to $8.175 million, and the AFLW soft cap to $1.375 million. Further changes announced in 2026 add an extra $750,000 to the 2026 cap and $350,000 to the 2027 cap, along with provisions for senior assistant coaches and marketing agreements.
Where does the AFL salary cap sit on the national earnings index?
The Salary Index uses full-time adult ordinary-time earnings as its baseline (index 100 = $108,352 annualised). The AFL salary cap is not an individual figure, but average player earnings are well above this line. For example, if the average AFL player salary were $450,000, that would equate to an index of about 415. However, individual salaries vary enormously: rookies may earn around $100,000 (index ~92), while star players can earn over $1 million (index > 900). The cap itself is a team-level constraint, so it is not directly comparable to the index.
How the cap affects player pay negotiations
Clubs must manage their list within the cap, which influences how much they can offer each player. Players with high market value may command a large share, leaving less for others. The cap also includes provisions for additional services agreements (e.g., marketing or promotional work) that count towards the total. The CBA ensures that payments are gross and that clubs cannot circumvent the cap through side deals.
Tax implications for players
AFL players are taxed like any other employee. Their gross salary is subject to marginal tax rates (see the 2026–27 rates above) plus the 2% Medicare levy. High earners may also face the Medicare levy surcharge if they do not have appropriate private hospital cover. Players can use salary sacrifice arrangements for certain benefits, but these may still count towards the cap. The cap itself is a gross figure, so clubs and players negotiate on a pre-tax basis.
Summary
The AFL salary cap is a key mechanism for maintaining competitive balance. It limits total player payments per club, with gross amounts before tax and super. While the cap is not an individual salary figure, average player earnings are significantly above the national line. Understanding the cap helps explain how player pay is structured and why some players earn far more than others. For more on how salaries compare across industries, see industries or how the index works. You can also explore pay guides for other roles or check states for regional differences.
Questions people ask
Does the AFL salary cap include superannuation?
The AFL salary cap (Total AFL Player Payments) covers gross payments to players, which typically includes base salary, match payments, and other agreed amounts. Superannuation guarantee contributions (currently 12% from 1 July 2026) are an additional employer cost and are generally included within the cap as part of total player payments. The CBA specifies that payments are gross, not net of tax, and super is a separate statutory obligation that clubs must meet on top of the cap unless otherwise agreed.
How does the AFL salary cap compare to the national earnings index?
The AFL salary cap is a team-level limit, not an individual salary. For context, the national full-time adult ordinary-time earnings index is set at 100 (annualised $108,352). Average AFL player earnings are estimated to be several times that, but precise figures are not publicly disclosed. The cap itself is in the millions per club, so the average player salary is well above the national line. However, rookie and lower-paid players may earn closer to the index, while star players earn significantly more.
Are AFL player salaries subject to PAYG tax and Medicare levy?
Yes, AFL players are employees and their gross payments are subject to Pay As You Go (PAYG) withholding tax and the Medicare levy (2%). The 2026–27 tax rates apply: nil up to $18,200, 15% from $18,201 to $45,000, 30% from $45,001 to $135,000, 37% from $135,001 to $190,000, and 45% above $190,000. Players may also have HELP debts or other adjustments. The salary cap is a gross figure before these deductions.