Pay-roll Tax Grouping Exclusions
The effect of grouping is that the wages of all businesses in a group are combined to determine
- if a liability to register for pay-roll tax exists; and
- the threshold amount, claimed by the designated group employer.
As a registered employer in Western Australia, if you are currently grouped for pay-roll tax purposes you may be eligible to apply for an exclusion from grouping under the new harmonisation Commissioner's Practice effective 1 July 2012.
The grounds for exclusion vary according to the provisions under which the businesses constitute a group.
The Commissioner can exercise discretion to exclude in the following grouping situations:
- Employees used in another business
- Commonly controlled business
Applying for exclusion
Before submitting your application requesting an exclusion from grouping effective from 1 July 2012, it is recommended that you read the Pay-roll Tax Grouping Provisions Fact Sheet and Commissioner's Practice PTA 031.
In order for the Commissioner to determine your eligibility for grouping exclusion you are requested to complete the Application for Exclusion from Grouping – Pay-roll Tax. All questions must be addressed and documentation provided where required.
Considerations prior to 1 July 2012
For exclusions considerations prior to 1 July 2012 please refer to Commissioner’s Practice PT 2 - Pay-roll Tax - Grouping Exclusions
Please note: The Commissioner cannot exclude a corporation from a group if it is related to another corpration which is a member of the group. Refer to Section 38(2) of the Pay-roll Tax Assessment Act 2002.