Cost of racing

[HL400]

Wow just read the Aus champs at QLD regulations, wow the cost to enter is $150.00,plus a week of work, fuel to get there, accommodation, I am looking at $1500, I am not stingy but the cost of racing is starting to blow the budget, what do you think about it.  HL 

[HL400]

Oops I forgot to eat, $$$$$  HL

[Lozza]

Pommy mag Performance Bikes showed a breakdown in costs for a well heeled club racer, a BSB team, WSB, MotoGP and F1 team. Although the amounts varied the percentages spent on travel, accomodation etc etc were proportionaly the same.Getting to and from the meeting will be one of the biggest costs, unless you can share with someone.Fact of motorsport life unfortunately.

[mainline]

I've been thinking about the possible benefits (taxwise) of sponsoring yourself if you're self employed.

Anyone else looked into this?

[VMX247]

Its a bit like a drug addict,you just keep doing it and don't worry to much about where the next lot of money is coming from...

I'm pretty happy with the Nationals trip costing us about $7000,haven't bothered too much about adding it up...........of course that total includes taking the WA crew out for tea  because I told em I saved too much money      
cheers
Alison

[Nathan S]

$1500 to have a shot at a National Title!?
Bargain!

No, really, I mean it.

Have a look at what other motorsport events cost, and you'll see that we're doing very well in the VMX world.

For example: To enter a single round of the Australian Rally Championship is $2650, and you'll go through at bare minium eight tyres that cost you $200 each, a lot more fuel (in both transporter and in the rally car), need to drag along a lot more mates, etc etc.
Then you've got to do it all another half dozen times to actually hope to win the championship. Not to mention that a competitive car is $100,000+++. Etc.

I can go on with the comparisons, but you get the gist.


Motorsport IS expensive. I hate people using that as an excuse to disregard the people that are pushed out of any sport by rising costs, and I'll fight against it.... Indeed it won't take much effort with Google to find me doing my na-na over people using that term in the rally world.
But to complain that competing in a National Title event that happens to be a long way from your home, is going to cost you a total of $1500 just leaves me gasping.

If anyone else can show me another form of motorsport that is cheaper than amateur MX/VMX, then I'll be very interested to hear about it.

[suzuki27]

If you are self employed you can save some money by sponsoring yourself. Check with an accountant Mainline. I had to get some signs made up for the trailler. I know my other half was very happy with the savings.

[mainline]

the problem with riding around with my mobile number on my bike would be obvious to everyone who has seen me ride

[Nathan S]

The tax thing is interesting - a few of the more knowledgable rally people reckon that there's lots of scope to make 'everything' tax deductable, if you're careful enough.

I had been wondering out loud about whether I could set up a 'shell company', simply to make my motorsport tax deductable. The greatly simplified version is that I probably could do so, providing the company took some money in, and that money was proportional to the 'advertising' money it spent on sponsoring me - simply having Nathan Industries spend $10k/year to sponsor me, with no income, would be very likely to incur the wrath of the ATO.

I didn't bother in the end - but if I did have a legitimate business, there's no doubt that sponsorship of old dirt bikes and rally cars would be its preferred way to advertise....

[Rosco400]

Seek your own advice from your accountant should you be able to qualify under this ATO Interpretive decision, each case is undertaken on individual merits, seek advice first before proceeding is the only advice I could give (Disclaimer)

This is available through the ATO home page so read wisely

http://law.ato.gov.au/atolaw/view.htm?rank=find&criteria=AND~sponsorship~basic~exact&target=JA&style=java&sdocid=AID/AID2005284/00001&recStart=1&PiT=99991231235958&recnum=7&tot=148&pn=ALL:::ALL

Copyright wont allow me to copy and paste in my current capacity so you will need to read through the link yourselves

[evo550]

Being self employed, I am able to claim everything except the original purchase price of the bike,I do this for myself and my sons racing(....more like my son and the very rare opportunity I get on a bike)
The business name needs to be splashed all over the bike/rider, vehicle ect. ect. and all of the on going costs of racing are claimed as advertising costs....and I mean ALL.
The deductions where questioned a few years ago by the ATO, after a bit of too and froing they agreed it was a legit claim and clear sailing since.

[colmoody]

Re the tax thing, just google ATOID 2005/284

[colmoody]

Rossco has obviously beat me to it. Forget I spoke.

[Rosco400]

It goes beyond the income aspect, you must meet all the criteria as outlined in the Interpretive decision to make it legitimate deduction. If in the instance the ATO conducts an audit of your business affairs, they will ask that have you complied to all the requirements as set out in the decision.

Really makes those cheap full rebuilds a lot more tempting tho

As for entertaining at the track, thats just a talent that I have been practising for years and would do even tho its not tax deductible, already planning a drink for the CRC

[NSR]

HL
What that says to me is that the $150 entry fee is a small % of the overall costs competing.
Noel