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Exclusion from a payroll tax grouping

A business that is grouped with other businesses for payroll tax may apply to Revenue NSW to be excluded from the grouping in certain circumstances.

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When can a business be excluded from a payroll tax grouping?

Revenue NSW may grant an exclusion order from a payroll tax grouping under section 79 of the Payroll Tax Act 2007 (PTA).

To be granted an exclusion order, the Chief Commissioner of Revenue NSW must be satisfied that your business:

  • is managed independently of every other group member, with no connections between them, and
  • has only casual, irregular, or occasional connections with the other group members.
 

Please note

Corporations grouped under section 70 of the PTA as related corporations are not eligible to apply for an exclusion order. Read more about related corporation grouping.


Entities grouped under section 74A of the PTA as illegal phoenix operators cannot be excluded under section 79 of the PTA. Read more about payroll tax grouping for illegal phoenix operators.

Information required

Make sure you have all the details you will need before starting the online form.

Open the headings below for more details.

To start your application
  • The ABN for all group members.
  • If any group members employ interstate, the state(s) they are paying interstate wages in.
  • Other details regarding:
    • the use of common employees, for example:
      • which employers use common employees
      • the services that the common employees perform, and
      • how payments are calculated for these services
    • the nature of business for each group member, their degree of control and ownership
    • any shared resources, equipment, facilities and/or services
    • any loans or guarantees between the businesses.
  • Partnership details, if applicable, regarding:
    • entitlement of profits, and
    • the capital invested in the partnership.
  • Trustee corporation or corporation details, if applicable, including the:
    • names of all shareholders, their percentage of shares held and their voting rights, and
    • names of the directors if you’re a trustee corporation or corporation
    • trust details regarding unit holders or beneficiaries.
Supporting documents you may need to supply
  • A group diagram showing relationships between the businesses.
  • Financial statements for each member of the group, covering the period(s) from the date from which exclusion is sought, to, and including, the application date.
  • Documentation relating to any intra group loans or financing arrangements.
  • Copies of any:
    • agreements about who is responsible for the day-to-day management of each business
    • agreements or arrangements for the provision of services relating to any use of common employees
    • formal arrangements or agreements in place to outline any shared or common resources.

Depending on the types of businesses within the group, you may also need to upload the following:

Partnerships
  • The Partnership agreement and all amendments to that agreement.
Company, trustee corporation, or other corporation or incorporated body
  • Constitution or other constituent documents.
  • Any proxy agreements relating to shares held by any of the shareholders.
  • Any shareholder agreements.
  • Powers of attorney or deed polls.
Trusts
  • Unit Trust:
    • a list of all unit holders, the number of units held, their relationship (if any), and
    • details of all changes to these holdings between the date from which exclusion is sought and the date of application.
  • Discretionary trust:
    • a list of all the beneficiaries.
  • Details of the trustee or trustees of the trust, including changes to who has had this role.
  • Copies of the trust deed/agreement and all amendments to it.
  • Details of all distributions (whether of income or capital) from the trust for the period from the date from which exclusion is sought to the date of the application.

How to apply for an exclusion

You will need to log in to the application form with your Client ID and Correspondence ID.

If you do not have a Client ID, or require assistance, please contact the payroll tax team on 1300 139 815.

You can save a draft copy of your application and return to the application at any time. A draft application will be saved for 30 days.

To avoid delays with your application please supply all the requested information about the:

  • business you are seeking to exclude, and
  • the other businesses within the same group.

Factors considered in an exclusion application

When making our decision, Revenue NSW will consider:

  • commonly controlled businesses
  • use of employees
  • nature and degree of ownership
  • nature and degree of control
  • nature of businesses
  • conducting business together
  • sharing of resources or customers
  • financial relationships/dependencies.
 

Need more detailed information?

Revenue Ruling PTA 031 v2 – Chief Commissioner's discretion to exclude from a group clarifies when the Chief Commissioner will exclude a smaller group from a larger group.

Commissioner's Practice Note 009 – Payroll tax grouping helps businesses to decide whether they are members of a group, and whether they may be entitled to be excluded from the group.

Revenue Ruling PTA 017 – Grouping of professional practices and administration businesses clarifies the circumstances in which professional practices and administrative service businesses are regarded as a group.

Penalties for false and misleading information

Under section 55 of the Taxation Administration Act 1996 (TAA) it is an offence to knowingly give false or misleading information to Revenue NSW. Penalties apply.

Failure to pay the correct amount of payroll tax on time is also considered a tax default and is subject to interest and penalty tax.

Privacy policy

The information collected on the application form is necessary to see if your business is entitled to an exclusion.

The information may be provided to third parties with your consent, or as required, or permitted by law. We will correct or update your personal information at your request.

Read our privacy policy.

Contact the payroll tax team

If you have questions about this topic call 1300 139 815 or +61 2 7808 6904 for international callers.

You can also email [email protected]
Apply online