This is no romance story, rather a cautionary tale about the
payroll tax implications for companies grouped together by the
Payroll Tax Acts.1
In this alert, Partner Justin Byrne, and Law Clerk Felicity
Dunstone comment on the implications of the recent decision of the
New South Wales Civil and Administrative Tribunal (the
Tribunal) in Namoi Tyreright Pty Ltd v Chief
Commissioner of State Revenue.2
Importantly, the decision may have implications for franchise
arrangements.
Grouping for Payroll Tax Purposes
When companies are grouped for payroll tax by the Commissioner
of State Revenue, they are viewed as one entity under Part 5,
Division 2 of the Payroll Tax Act 2007 (NSW) (the
Act) for the purposes of payroll tax liabilities.
Employers that have a wages bill equal to or in excess of $750 000
annually (NSW Threshold from 1 July 2016) are
required to remit payroll tax to the State. "Wages" is
widely defined in the Act to include all forms of direct
