August 9, 2017
Professionals | QLD
APPLICATIONS FOR EXCLUSION ORDERS
Where businesses are grouped for payroll tax purposes, the Commissioner has the discretion to exclude businesses from the group (an exclusion order). In order to make an exclusion order, the Commissioner must be satisfied that the business seeking exclusion is independent of the other businesses in the group and not significantly connected in any way.
- the nature and degree of ownership and control of the businesses;
- the nature of the businesses; and
- any other matters the Commissioner considers relevant.
1. Ownership and Control of Business
2. Nature of the Businesses
Where businesses are significantly different, the Commissioner will be more likely to make an exclusion order. By comparison, where the businesses are in similar industries and/or have contractual arrangements in place for the exchange of goods and services, the Commissioner is less likely to see that there is independence between the businesses.
3. Other Matters
- the nature and extent of any commercial transactions between the members;
- the extent to which members share resources, facilities or services
- the extent to which the employer controls or is involved in managerial decisions and day to day administration of the other members;
- the extent to which there are financial interdependencies, including intra-group loans or guarantees;
- the degree to which there is a connection between the employer and other members of the group in the purchase or sales of goods and services;
- the extent to which there is a connection between the nature of the businesses of the employer and other members of the group; and
- the extent to which there is a connection between the ultimate owners of the employer and other members of the group.
IMPORTANT MATTERS WHICH AFFECT THE COMMISSIONER’S EXERCISE OF DISCRETION
- sharing of employees by members of the group – often administrative staff or key employees (e.g. a chef, bookkeeper);
- loans between members of the group;
- sharing of business premises;
- sharing of phone numbers and postal addresses.