Payroll tax grouping for NSW Public Service agencies
How NSW Government departments, agencies, statutory bodies, and state-owned corporations are grouped for payroll tax.
Special grouping provisions for NSW Public Service agencies are included under Part 4 Schedule 2 of the Payroll Tax Act 2007 (PTA).
As listed under Schedule 1 of the Government Sector Employment Act 2013 (GSEA), Public Service agency includes a:
- Department
- Public Service Executive agency (an agency related to a Department), or
- Separate Public Service agency.
Which agencies are grouped?
The following Public Service agencies are grouped for payroll tax purposes:
- agencies listed under Schedule 1 of the GSEA
- the Independent Commission Against Corruption
- the Judicial Commission of NSW, and
- the NSW Police Force.
These agencies must:
Please note
NSW Treasury is the designated group employer and is entitled to claim the threshold. Read more about payroll tax rates and thresholds.
Which agencies are not grouped?
Public Service agencies that are not grouped under Part 4 Schedule 2 are:
- agencies referred to in Schedule 1 in the GSEA as a ‘Staff Agency’.
- the Health Professional Councils Authority Office, and
- the employer that is taken to be a ‘separate employer’ under Clause 14 of Schedule 2 of the PTA.
These agencies must:
These agencies can claim the payroll tax threshold. Read more about payroll tax rates and thresholds.
Statutory bodies and authorities
A statutory body or authority is an entity created by specific legislation to fulfill specific functions and responsibilities defined by legislation specific to that entity.
Unless authorised by legislation, Section 47A of the Constitution Act 1902 prevents a statutory body or statutory officer from employing staff.
In such situations, a Public Service agency can create separate branches or groups of staff to service the needs of a particular statutory corporation. See section 22 (2) of the GSEA. That part of the Public Service agency or branch or group is deemed to be a ‘separate employer’, which is not grouped with other Public Service agencies.
A ‘separate employer’ is entitled to a separate payroll tax threshold. See Clause 14 of Schedule 2 of the PTA.
The branch or part of the agency must register and lodge separate payroll tax returns that include the following:
- the wages paid or payable to the staff of the branch or part of the agency,
- any fees or other remuneration paid or payable to the members of the board or other governing body of the statutory authority,
- any amount paid or payable under a relevant contract.
Statutory State Owned Corporations
Grouping provisions under Section 72 of the PTA (groups of commonly controlled businesses) do not apply to Statutory State Owned Corporations listed under Schedule 5 of the State Owned Corporations Act 1989. See Section 16 of Part 4 Schedule 2 of the PTA.
Statutory State Owned Corporations must:
Statutory State Owned Corporations can claim the payroll tax threshold. Read more about payroll tax rates and thresholds.
Contact the payroll tax team
If you have more questions about this topic call 1300 139 815 or +61 2 7808 6904 for international callers.
You can also email [email protected]