Grouping

Payroll tax grouping: when businesses share one threshold

Related companies, shared employees and common control can make several businesses one employer for payroll tax. A short guide with the official page for every state.

Grouping rules stop a business from splitting into several entities to claim several thresholds. Businesses that are grouped are treated as a single employer: the group's wages are added together, one member claims the threshold, and the others pay on all their wages.[1],[2] The rules are harmonised across the states,[3] but each office has its own pages and decisions.

How businesses become grouped

  • Related corporations: companies that are related bodies corporate (holding company and subsidiaries, including through an overseas parent). They cannot apply to be excluded.[1]
  • Shared employees: an employer whose employees perform duties for another business, or are employed mainly to work for it.[1]
  • Common control: the same person or set of persons has a controlling interest (more than 50%) in two businesses, whether they are companies, partnerships, trusts or sole traders; beneficiaries of discretionary trusts are treated as holding more than 50%.[1]
  • Tracing: interests held through other entities are traced, and groups that share a member are combined.[1]

What grouping changes

Only the designated group employer (DGE) is entitled to the threshold or deduction; in some states an unused part can be allocated to another member in the annual return.[4] The DGE works out the threshold on the group's wages: in NSW, $1,200,000 × group NSW wages ÷ group Australian wages.[2] Use the group's totals in our calculator: the result is the group total.

Failing to register a related entity under the grouping provisions is one of the reasons unregistered employers are penalised each year.[5]

The Commissioner has discretion to exclude a member from a group in certain circumstances (not related corporations): in Victoria the factors are in Revenue Ruling PTA-031v2.[1] In Queensland, the Home Ownership and Other Legislation Amendment Act 2026, assented on 22 October 2026, confirms that the Commissioner may exclude a set of persons from a group.[6]

Official grouping pages

We summarise the rules but do not decide whether your businesses are grouped: that depends on facts the revenue offices assess case by case.

Common questions

Questions people in Australia search for, answered from the official sources.

What are the payroll tax grouping rules?

Businesses are grouped if they are related corporations, share employees, or are controlled by the same person or people (more than 50%), including through trusts. A group shares one threshold, claimed by the designated group employer.[1],[2]

Can a business be excluded from a payroll tax group?

Sometimes. The law gives the Commissioner discretion to exclude a member from a group in certain circumstances (in Victoria the factors are set out in Revenue Ruling PTA-031v2), but corporations that are related bodies corporate cannot apply to be excluded. You apply to the revenue office of each state concerned.[1]

Guides

Sources

  1. Grouping · State Revenue Office Victoria. checked 11 November 2026; page says “Updated: 22 October 2026”
  2. Payroll tax thresholds and rates · Revenue NSW. checked 11 November 2026; page says “Last updated: 01 July 2026”
  3. Payroll tax rates and thresholds (all states and territories) · Australian Revenue Offices (payrolltax.gov.au). checked 11 November 2026; page says “Last updated on: 28/10/2026”
  4. Lodging payroll tax returns · Australian Revenue Offices (payrolltax.gov.au). checked 11 November 2026; page says “Last updated on: 09/06/2026”
  5. Registration · Australian Revenue Offices (payrolltax.gov.au). checked 11 November 2026; page says “Last updated on: 10/07/2024”
  6. Home Ownership and Other Legislation Amendment Act 2026: overview · Queensland Revenue Office. checked 11 November 2026
  7. Payroll tax grouping · Revenue NSW. checked 11 November 2026
  8. Grouping · Queensland Revenue Office. checked 11 November 2026
  9. Grouping: Payroll Tax Employer Guide · Department of Treasury and Finance (WA). checked 11 November 2026; page says “Last updated: 14 March 2026”
  10. Grouping of employers · RevenueSA. checked 11 November 2026
  11. Grouping and de-grouping · State Revenue Office of Tasmania. checked 11 November 2026; page says “Last published on: 29/08/2024”
  12. Payroll Tax Act 2011 (ACT), Schedule 1 and s 9 · ACT Legislation Register. checked 11 November 2026
  13. Payroll Tax Act 2009 (NT), as in force at 1 July 2026 · Northern Territory Legislation. checked 11 November 2026

Every figure on this page comes from the official pages above. We re-read them with the checks described here; if a page changes, the figure is re-checked before it stays on the site.

General information, not tax advice. Figures and formulas are taken from the official revenue office pages and legislation linked on each page. Payroll tax depends on facts this site cannot check (what counts as wages, exemptions, grouping, contractors). Confirm your liability with the revenue office of each state where you pay wages, or with a registered tax agent.