Legislative provisions

The Act contains provisions allowing for the grouping of employers.

The grouping provisions have the effect of adding together the wages paid by group employers and allowing only the designated group employer to claim the deduction.

Technically, a group exists where any of the following circumstances apply:

  1. Corporations are related under section 50 of the Corporations Act 2001 (Cth).
  2. There is an inter-use or sharing of employees between two or more businesses.
  3. A person or set of persons together have a controlling interest in two or more businesses where those businesses are carried on by separate legal entities.
  4. An entity, that is a person or set of associated persons, have a controlling interest in a corporation.

It is important to note that where the same person owns two or more businesses, it is not necessary to consider the grouping provisions. In such cases, there is only one legal employer and the wages paid in respect of each business must be combined in the return lodged by that employer.

The Commissioner may exclude a member from a group if he is satisfied that the business conducted by that member is independent of, and unconnected with, the businesses conducted by the other members of the group. This discretion is not available for a group constituted under (1) above.


If you need further information on this topic, please contact our payroll tax enquiry service on 13 21 61.