Grouping
Businesses linked by common ownership or control (to the extent of 50% or more), and those who share employees, are "grouped' for pay-roll tax purposes.
The terms "grouped", "grouped employer" and "group wages" used in the context of pay-roll tax, have no connection with Group Tax. Employers remit Group Tax to the Australian Taxation Office.
A business is considered to be "grouped" for pay-roll tax purposes if one or more of the following criteria are met:
- companies are related corporations under the Corporations Law (parent and subsidiary companies)
- employee/s are used in another business
- a business is controlled by the same persons who control another business (or both businesses are controlled by the same individual)
- a head or parent business exercises managerial control over a branch, agency, or subsidiary business.
If you need more information to determine whether "grouping" applies to your situation, please consult your professional adviser, or refer to the Grouped employers section of the Pay-roll tax Information Kit.
