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Grouping Provisions

Grouping Provisions

For payroll tax purposes, businesses may be grouped with other businesses if there is a link between the companies. When a group exists:

  • Only a single threshold applies to the group, and
  • Each member of the group is liable for any outstanding payroll tax of the other group members.

A group can be defined in the following ways:

  • Related Companies where two or more companies are a holding company and a subsidiary or both subsidiaries of the same holding company;
  • Use of common employees when an agreement for services between two or more businesses results in the employees of one business performing duties as an employee for another business;
  • Commonly controlled businesses where two businesses are controlled by the same person(s) and have a controlling interest of more than 50% across different entities. A ‘person’ means a natural person, trustee or corporate
    entity.
  • Subsuming means that a larger group can be formed out of multiple smaller groups.

NSW OSR uses data analytics and risk assessment processes to identify employers that may be non-compliant in their payroll tax obligations. It regularly exchanges information with other agencies including the ATO, Safe Cover NSW, the Australian Securities and Investments Commission (ASIC) and Rental Bond Board. Therefore, you should take appropriate steps to be prepared for an audit by undertaking a review of your current Payroll tax processes and procedures. 

If you require assistance with payroll tax or your business has been selected for a Payroll Tax Audit and you have been requested to complete an Employers Questionnaire you should contact us on (02) 9223 9166 to get assistance with completing this form and discussing your options. Alternatively you can submit an online enquiry form.