Warriors let off paying $5.5m in tax

that the club could be liable to compensate players and staff, which would have been around $5.5m.

‘‘All of our employment agreements and contracts are based in New Zealand and subject to New Zealand law,’’ he said. ‘‘When we established them with staff and players, we never envisaged a situation where we’d ask them to relocate to Australia for an entire season.

‘‘So that would mean they’d have a rightful conversation with us to say if they’re now going to be taxed in Australia at a higher rate, plus having to pay superannuation, we would have to gross up their earnings, so their net take home pay was the same as if they were continually based in New Zealand.

‘‘That argument is likely to be supported through New Zealand employment law.’’

If the Warriors had to pay players more money so that their take home pay was the same, it would have taken the club over the salary cap limit. The Warriors had been looking to resolve this issue ever since they relocated to Australia and after initially being told by the Australian Taxation Office that they wouldn’t bend the rules, they asked the NRL to help out.

Meanwhile, it was reported yesterday that the Warriors had given up any hope of being back in New Zealand in time to play the Dragons at Mt Smart Stadium on July 2.

While the team may stay in Australia beyond that date, meetings with the NRL are still ongoing and no decision will be reached until late next week.

As Stuff reported last month, one option being looked at is continuing to be based on the Central Coast, but making hit-and-run missions to Auckland to play games, as this reduces the risk of being stuck in New Zealand if the trans-tasman travel bubble temporarily closes.

‘‘There is the desire around coming home for a couple of games, we have to try to do everything we can to have a game back home,’’ Croot said.

‘‘If that is a fly in, fly out option, we’ll do everything we can to do that.’’