A group’s payroll tax amount is calculated on the members’ combined Australian wages. Only one payroll tax deduction is available for the group—this business is the designated group employer (DGE).
If your business pays wages as part of a group, you must register for payroll tax within 7 days after the end of the first month you are in the group.
If any payroll tax, including penalty and unpaid tax interest, is not paid by anyone in a group, each of the other businesses in the group is liable for the amount. This applies regardless of whether the business was an employer during that period.
Types of grouping
Businesses are grouped if they:
Your business only needs to fit into 1 of these categories to be grouped.
Trade unions and unions of employers may also be grouped in certain circumstances.
Exclusions
If a business in a group is carried on independently of, and is not connected with the carrying on of, other businesses in the group, the Commissioner can decide to exclude it. This will depend on the facts of each case.
No exclusion is available for related bodies corporate.
We will consider:
- ownership and control of the business and other members of the group
- the nature of the businesses
- other matters the Commissioner considers relevant.
A high level of common ownership/control/entitlement is a significant factor when deciding whether businesses are carried on independently and are not connected. As the level of common ownership/control/entitlement increases above the minimum threshold, the importance of this factor also increases, to the point where it may outweigh all other relevant matters when considering whether or not to grant an exclusion order.
Complete a Form PT1—Application for exclusion from grouping (PDF 210 K).
For more information, see:
Deductions
A group is eligible for a deduction if its combined Australian wages are less than $5,000,000. When the group’s wages are higher, payroll tax is calculated on the full amount.
If the group's estimated total Australian wages for the financial year are $1,000,000 or less, there is no payroll tax owed (maximum deduction).
The group chooses one employer—usually the employer who pays the highest wages—to claim the deduction. This employer is called the designated group employer (DGE).
See Choosing a designated group employer (DGE) for more information.
Returns
Each group member must calculate its payroll tax and lodge the following:
