Carlos Alcaraz may have lifted the Australian Open trophy, but he won’t be taking home all of the prize money that comes with it. After beating Novak Djokovic 2-6, 6-2, 6-3, 7-5 in the men’s singles final in Melbourne, the 22-year-old Spaniard earned a winner’s cheque of AUD 4.15 million. However, a significant chunk of that amount will be lost to tax.Alcaraz’s victory was historic. By winning in Australia, he completed a career Grand Slam (titles at all four major tournaments), becoming the youngest man ever to do so. He broke a record previously held by his idol and fellow Spaniard Rafael Nadal. The win also confirmed Alcaraz’s status as the world number one and denied Djokovic a record-breaking 25th Grand Slam title.The match itself swung after a slow start for Alcaraz. Djokovic took the opening set comfortably, but Alcaraz responded strongly, increasing his intensity and controlling the rallies. There was a brief moment of frustration when Alcaraz questioned officials over the roof being closed due to strong winds, but it didn’t stop his momentum. He broke Djokovic at key moments in the third and fourth sets to seal the win.Despite the glory, Alcaraz won’t keep the full prize money. Tennis players are taxed based on where a tournament is played, not by the ATP or WTA. Since the Australian Open is held in Australia, local tax laws apply. For foreign players like Alcaraz, only income earned in Australia is taxed, but the rate is still high.According to estimates, the tax rate is around 32.5 per cent. That means Alcaraz is expected to lose roughly AUD 1.35 million to tax, leaving him with just under AUD 2.8 million before other expenses. The issue has become a talking point, with reports suggesting top players’ representatives have already discussed pushing for a larger share of tournament revenue in the future.So while Alcaraz walks away with a trophy and a place in history, a sizeable portion of his winnings stays behind.
