Players need incentive to live in PNG compound, says Albanese

Prime Minister Anthony Albanese has backed the tax exemption that stands to make PNG Chiefs the financial superpower of the NRL, as Wests Tigers joined the race for the Chiefs’ latest target, Connor Watson.

Bankrolled by a $600 million Australian government funding package, the historic expansion team have already secured Wests Tigers co-captain Jarome Luai on a $1.2 million-a-year, tax-free deal and will effectively have the deepest pockets in the game when dozens of leading players become free agents on November 1.

With the lure of tax-free earnings in the Pacific nation, existing clubs could be blown out of the water trying to keep their best players.

Albanese’s government rubber-stamped the PNG tax breaks in the federal budget this month and he said on Friday the competition’s 19th team need such an edge.

The diehard South Sydney supporter and former Rabbitohs board member has seen a player from his own club – the game’s all-time record try scorer, Alex Johnson – also sign with the Chiefs for their entry to the NRL in 2028.

“I don’t feel anything other than happiness for him,” Albanese said. “The truth is they’re going over there, they’ll live in a compound. There does need to be an incentive for that.

“That’s a decision that PNG have made because it’s so important for them and when you think about aid, I can’t think of any aid and assistance in our region in the Pacific – and we’re part of the Pacific family – that will be more important than support for the PNG Chiefs.”

Watson, the Roosters utility, is the latest potential Chiefs recruit to visit PNG this week. He was shown around Port Moresby by club’s chief executive Lorna McPherson last Sunday.

The 29-year-old is contracted to the Tricolours until the end of 2027 but has clearance from the club to explore other options and has been linked with a gap year at the Dragons next season if he chooses to join PNG, who will enter the competition in 2028.

On Friday, it emerged the former State of Origin super sub had also attracted longer-term interest from the Tigers and another Sydney club, with meetings scheduled next week.

Watson’s versatility could suit the Tigers, where he could play lock and also provide cover for hooker and co-captain Api Koroisau.

While his acquisition would be another coup for PNG if he decides to take up an offer there, the action in the player market will intensify when the likes of Nathan Cleary become available to speak to other clubs including the Chiefs later this year.

Speaking at the opening of St George Illawarra’s new base in Wollongong, which was built with federal and state funding, Albanese said he had spoken to PNG counterpart James Marape about the Chiefs’ signings to date.

“AJ will be an enormous asset for them. [It’s] a great way to end his career,” he said. “Jarome Luai … I thought he spoke very well about why he’s going. It’s not just about money, it’s about contribution and making a difference, and it will make a fantastic difference. I think it is a very positive thing and I thank all the clubs who essentially have got behind the concept.”

The Australian government said this month it was amending tax law to guarantee PNG tax exemptions for Chiefs players and staff and would lose $5.4 million in tax revenue over four years as a result.

The government’s backing of the new NRL team and rugby league development in PNG and other countries in the Pacific is aimed at deepening ties with Australia’s nearest neighbour and warding off China’s influence in the region.

As the Chiefs continue their efforts to build a strong squad, general manager of football Michael Chammas has set off on a charm offensive in England, where six Kumuls internationals play for the London Broncos and Chiefs coach Willie Peters is based with Super League champions Hull KR.