Definitions & Acronyms

If your business is related or connected to another business, you will be treated as one unit (group) for payroll tax purposes. This is called 'grouping'.

A group exists if:

• corporations are related bodies corporate
• employees are used in more than one business
• the same person, or set of persons, has a controlling interest in two or more businesses
• an entity has a tracing interest in corporations
• a person is part of two or more groups.

Your business only needs to fit into one of these categories to be grouped.

The effect of grouping is that wages are aggregated to determine payroll tax liability for the group and only one payroll tax threshold (deduction) can be claimed by the designated group employer for each group.

For detailed information, refer to the Payroll Tax legislation in the state or territory you are interested in.

A person (including incorporated entities, all bodies and associations, trusts, partnerships and natural persons) who is a member of a group. 

A New Tax System (Goods and Services Tax) Act 1999 of the Commonwealth except that it includes notional GST of the kind for which payments may be made under Part 3 of the National Taxation Reform (Commonwealth-State Relations) Act 1999 by a person that is a State entity within the meaning of that Act.

An entity has an indirect interest in a corporation if the corporation is linked to another corporation (the directly controlled corporation) in which the entity has a direct interest.

A corporation is linked to a directly controlled corporation if the corporation is part of a chain of corporations: 

(a) that starts with the directly controlled corporation, and 

(b) in which a link in the chain is formed if a corporation has a direct interest in the next corporation in the chain.

A cheque, bill of exchange, promissory note, money order and postal order issued by a post office.

Income Tax Assessment Act 1936 or Income Tax Assessment Act 1997 of the Commonwealth.

An arrangement where a person (the employment agent) contracts with another (the client) for the provision of labour where there is no agreement between the worker and the client.

The person who, whether or not appointed as liquidator, is the person required by law to carry out the winding-up of a company.

A fixed amount motor vehicle allowance paid to a real estate sales person.

If an employee receives a workers’ compensation payment that is less than their normal wages, the amount that an employer pays to make up the difference is called ‘make-up’ pay. This is a taxable amount. (referred to as top-up payments in WA.)

Leave given to an employee in connection with the pregnancy or birth of a child.

the month of January, February, March, April, May, June, July, August, September, October, November and December.

An allowance paid or payable to an employee to compensate them for any business use of his or her own private vehicle. 

(See Exempt Rate – Motor vehicle allowance)

An employer or business who is not a member of a payroll tax group.

An option or right, whether actual, prospective or contingent, of a person to acquire a share or to have a share transferred or allotted to the person.