Payroll tax grouping in Victoria
Under a schedule to Victoria's Payroll Tax Act, the claim to the group's deductible amount belongs to the designated group employer. The Act groups related companies, businesses that use each other's employees and businesses under common control, and the commissioner can exclude a business from a group.
- By Book Keeping Pros
- Sources checked 15 Oct 2026
The rules in Victoria
| What it is | Value | When it applies | Where it is set |
|---|---|---|---|
| Related companies form a group | Yes | As published on 1 May 2026 | s 70(1): related bodies corporate |
| Businesses that use each other's employees form a group | Yes | As published on 1 May 2026 | s 71(1): use of common employees |
| Businesses under common control form a group | Yes | As published on 1 May 2026 | s 72(1): commonly controlled businesses |
| Voting power in a company above which a person has a controlling interest | 50% | As published on 1 May 2026 | s 72(2)(e): voting shares in a corporation |
| The commissioner can exclude a business from a group | Yes | As published on 1 May 2026 | s 79(1): exclusion of persons from groups |
| Group member that claims the group's deductible amount | The designated group employer | As published on 1 May 2026 | Sch 2 cl 10(2): designated group employer claims deductible amount |
| Each group member is liable for tax another member fails to pay | Yes | As published on 1 May 2026 | s 81(1): joint and several liability |
Each rule is read from the source and provision shown; the sources are listed below. Checked 15 Oct 2026.
What it means for your books
- The designated group employer's books carry the claim for the group's deductible amount, so a note in the group's file naming that member shows where the claim sits.
- Under the Victorian Act, a controlling interest in a company goes with voting power above the share in the table. Up-to-date share registers show where that line falls across the group.
- Where group businesses use each other's employees, records such as timesheets show which business each employee's work was done for.
- A Victorian group member is liable for tax another member fails to pay, so the group's file can hold each member's payment records and any exclusion decision from the commissioner. Questions about either are for your accountant or State Revenue Office Victoria.
General information
Sources
- Payroll Tax Act 2007 (Vic), Authorised Version No. 041
Office of the Chief Parliamentary Counsel Victoria. Authorised Version No. 041, as at 1 May 2026, released 1 May 2026. Checked 15 October 2026.
© State of Victoria (Government Printer) Licence: Victorian Legislation copyright notice: copyright, State of Victoria.
- Payroll tax
State Revenue Office Victoria. Page updated 24 August 2026 (last_update_date metadata), released 24 August 2026. Checked 15 October 2026.
© State of Victoria (State Revenue Office), licensed under CC BY 4.0 Licence: CC BY 4.0.
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