The following government departments listed in Schedule 3 of the Public Finance and Audit Act 1983 constitute a group and are required to pay the flat rate of tax, except for Treasury, which is the designated group employer and entitled to claim the threshold:
Specific provisions identify NSW government departments and other government agencies that are grouped and can claim the threshold. These provisions also make reference to the Public Finance and Audit Act 1983 (PFAA), Government Sector Employment Act 2013 (GSEA), and State Owned Corporations Act 1989 (SOCA), and the schedules contained in these Acts list government departments, statutory bodies, executive and separate agencies.
All statutory state-owned corporations listed in Schedule 5 of the SOCA cannot be grouped under section 72 (controlling interests) of the PRTA. Therefore, each corporation is entitled to claim the threshold and submit separate payroll tax returns, unless it can be grouped under another provision such as common employees (section 71 of the Payroll Tax Act 2007).
All bodies listed in Schedule 3, Column 1 of the PFAA are grouped for payroll tax purposes. Therefore, they are required to pay the flat rate of tax, except for NSW Treasury, which is the designated group employer and entitled to claim the threshold.
Parts 2 and 3 of Schedule 1 of the GSEA specify executive and separate agencies. Some of the executive and separate agencies listed under Parts 2 and 3 of the GSEA, which also appear in Schedule 3 Column 1 of the PFAA, are not entitled to the threshold and therefore must pay the flat rate of tax.
Any executive and separate agencies not listed in Column 1 of Schedule 3 of the PFAA may be entitled to the threshold if their staff are employed in a separate branch. This will enable the agency to exercise its functions under section 22 of the GSEA.
A statutory authority, where staff are not employed under Part 4 of the GSEA, can claim the payroll tax threshold.
Note: Most statutory authorities are not able to employ their own staff – they must be employed in a government department. To determine whether the government department is entitled to the threshold, refer to Schedule 3, Column 1 of the PFAA.