Groups formed through controlling interests for payroll tax
If a person has a controlling interest (more than 50%) in 2 or more businesses, those businesses are grouped. 'Person' includes an individual, a set of persons, a corporation, all bodies and associations (corporate, incorporated and unincorporated), and partnerships.
See the table to decide who has controlling interest for different business types.
|Business type||Who has controlling interest|
A person who is entitled to exercise more than 50% of the voting power:
|Body corporate or unincorporate|
A person, or set of persons, who constitutes more than 50% of the management board, or controls the composition of the board
A person who:
A person who is a beneficiary of more than 50% of the value of the interest in the trust that carries on the business
Under a discretionary trust, all beneficiaries are deemed to have a controlling interest
Different business types can be grouped if the same person or set of persons has a controlling interest.
In this example:
- S Pty Ltd and C Pty Ltd are related bodies corporate
- C Pty Ltd has more than a 50% interest in A Partnership
- S Pty Ltd has more than a 50% interest in B Partnership.
As C Pty Ltd is a subsidiary of S Pty Ltd, S Pty Ltd is also deemed to have a controlling interest of A Partnership.
In this case, S Pty Ltd, C Pty Ltd, B Partnership and A Partnership are all grouped.
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