ACRA Disclosure

ACRA DISCLOSURE DOCUMENT

1. OBJECTIVES OF ACRA

The objectives of the Australian Cricketers’ Retirement Account (the ‘Account’) are:

  • To provide post career benefits for all male and female Cricket Australia (CA), State, W/BBL and Rookie Players (other than Overseas Players) as defined in the Memorandum of Understanding (MOU) between CA and the Australian Cricketers’ Association (ACA). These are more specifically defined in the Rules as Eligible Uncontracted Players.
  • To assist in a Player’s transition from professional cricket to after professional cricket life.

2. ACCOUNT MANAGEMENT

CA operated and managed the Account from its inception in or about July 2001 and agreed to transfer the ownership of the Account to the ACA in November 2018.

The ACA will now own and manage the Account in accordance with the MOU and the ACRA Rules (Rules).

An ACRA Board of Management (ACRA BoM) has been established to oversee the ACA’s management of the Account. A representative of the ACA and CA will sit on the ACRA BoM, along with an independent chairperson and other specialist members (when appointed).

The ACA may outsource some of the management functions of the Account to third party provider(s) and seek external advice.

3. PROVISION OF ACRA BENEFITS UPON RETIREMENT OR HARDSHIP

Under the Rules, Eligible Uncontracted Players will, beginning upon their retirement from CA, State and W/BBL cricket, receive an ACRA Benefit as a mixture of:

  • A fixed initial lump sum payment; and/or
  • Annuity payments.

This is explained in part 6 below.

This lump sum/annuity model is likely to be more advantageous for many Players upon retirement from cricket than the previous scheme (especially those with a significant ACRA balance) because their ACRA Benefit will continue to grow in a tax-free environment and not be paid out in one lump sum which would incur a greater tax charge.

In addition to retirement (as described above), a player can apply for an early release and payment in the case of significant hardship, as set out in the Rules. Also, if a Player is suspended (and therefore uncontracted) they can apply to stay in the scheme in accordance with the Rules.

4. ACCRUAL OF ACRA BENEFITS

These ACRA Benefits would accrue based on a fixed amount per season (Base Payment) depending on the cricket contract the Player has (e.g. Rookie Contract, State Player Contract, CA Contract or W/BBL contract as defined), with additional benefits accrued based on the matches played by the Player for the year (Match Credits). Additional ACRA may also be allocated as part of the draw down of the players’ Adjustment Ledger in accordance with the MOU.

Base Payments and Match Credit

The ACRA Base Payment amounts for 2018-19 are:

   Season CA Lump Sum  CA Credit  State Lump Sum State Credit  Rookie Lump Sum  W/BBL Lump Sum 
Male    2018-19  $19,296 $1,929  $3,256   $326  $1,628 $1,628 
Female  2018-19 $3,256   $1,628  $326  $204  - $326 

The ACRA Match Credits are accrued at the following rates:

Match Type

Credit

Sheffield Shield & State three or four day Tour Match

1 State Credit (Men)

Domestic One-Day Cup & One Day Tour Match

0.5 State Credit (Men)

Big Bash League Match

0.25 State Credit (Men)

Women’s National Cricket League

1 State Credit (Women)

Women’s Big Bash League Match

0.5 State Credit (Women)

Men’s Test Match

1 CA Credit (Men)

Men’s One Day International

0.5 CA Credit (Men)

Men’s Twenty 20 International

0.25 CA Credit (Men)

Australia A four day match

0.2 CA Credit (Men)

Australia A one day match

0.2 CA Credit (Men)

Women’s Test Match

1 CA Credit (Women)

Women’s One Day International

0.5 CA Credit (Women)

Women’s Twenty 20 International

0.25 CA Credit (Women)


Additional ACRA from the Adjustment Ledger

Additional amounts may be paid to the ACA (to be paid into the Account) from the player’s Adjustment Ledger pursuant to Article 5.6(d) or Article 5.9 of the MOU.

Any accumulated assets of the Account (made up of the above payments) shall be held for the benefit of Eligible Contracted and Eligible Uncontracted Players to the extent of their benefit as determined by the MOU and the Rules.

5.  INVESTMENT OF THE ACCOUNT

The assets of the Account may from time to time be invested. The Account will consist of the contributions to the Account and investment returns, less taxes and expenses and benefit payments.

The ACA and the ACRA BoM will rely upon the advice of professional investment advisors and managers when considering investment matters. As a result of investment of assets of the Account, the balance of the Account may rise or fall over time.

Due to the volatility of investment returns and the costs of investing, it is possible that the Account may be less than the value of contributions made to the Account.

6. PAYMENTS FROM THE ACCOUNT

An ACRA Benefit calculated in accordance with the Rules and accrued in the Account will be paid to Eligible Uncontracted Players in the manner and at the time/s provided for in the Rules and the Payment Table (below), and in such other manner in accordance with the Rules and relevant taxation legislation.

The Player shall be responsible for the payment of income tax or any other tax payable in respect of any ACRA benefit received from the Account.

The Player should seek their own taxation advice regarding the application of taxation legislation to any ACRA benefit you may be entitled to – such as its treatment as an Eligible Termination Payment.

Payment Table

Balance Range

Initial Lump Sum Payment

Periodic Payment Term

Up to $125,000

100%

n/a

$125,000 - $300,000

30%

3

$300,000 - $500,000

30%

5

$500,000 - $750,000

25%

7

$750,000 - $1,250,000

20%

10

More than $1,250,000

15%

15

For further clarification, please refer to the ACRA rules in the members section of the ACA website , or speak to Brendan Drew.