Almost the entire F1 grid boarded planes to leave Australia in the hours that followed Sunday’s Australian Grand Prix, in a bid to save some of their hard-earned cash.
That is because the cost of them staying in Australia for even one more day than what was required is exorbitant.
Australia has one of the most brutal tax systems in the world, with F1 drivers taxed on their astronomical earnings for every day they are Down Under.
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Non-resident F1 drivers are taxed on the slice of income linked to Australian activities, with PAYG withholding generally at foreign‑resident rates for individuals, which in the case of an F1 driver is at a whopping 45 per cent.
So, leaving the night following the Australian Grand Prix can literally save a driver tens of thousands of dollars.
For example, in the case of Max Verstappen, who is paid a reported annual income of around $70 million by Red Bull Racing, he spends six workdays in Australia for the Australian Grand Prix.
It means he earns approximately $1.15m of his annual salary while in Australia, and at the 40 per cent tax rate, he has to cough up around $460,000 to the Australian government.
For every day he spent working in Australia under his F1 contract, after that, it is another $76,000 he would have to fork out.
That does not include any tax that he may have to on appearance bonuses and other sponsorship income.
Max Verstappen hints at retirement
Max Verstappen has hinted he could soon walk away from the sport as he called on the FIA to produce “Formula One on steroids”.
This is not the first time the seven-time world champion has slammed the sport’s new regulations or hinted his retirement could be around the corner.
F1’s new era of cars are more reliant than ever on battery power and in-car management after the most dramatic rules and regulations overhaul in ten years.
Verstappen previously described them as “Formula E on steroids” and “not pure F1.”
And after a horror weekend, Verstappen, when asked if he would continue in the sport, he again offered no guarantees.
He said: “I love racing, but you can only take so much, right?
“I think they’re willing to listen, the FIA and F1, but I just hope there is some action.
“I’m not the only one saying it. A lot of people are saying the same, be it the drivers or the fans.
“We just want the best for the sport. It’s not that we are critical, just to be critical. We are critical for a reason.
“We want it to be Formula 1, you know, proper Formula 1 on steroids, but today, again, that was not the case.”
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