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Queensland Government - Queensland Revenue Office
Queensland Government - Queensland Revenue Office

Related bodies corporate for payroll tax

Learn about what circumstances apply for corporations to be grouped.

Related bodies corporate that carry on a business are automatically grouped.

‘Corporation’ is defined in section 57A of the Corporations Act 2001 (Cwlth).

Corporations are related if any of the following apply:

  • 1 corporation controls the board composition of another corporation
  • 1 corporation can control more than 50% of votes in a general meeting of another corporation
  • 1 corporation holds more than 50% of the share capital of another corporation.

The first corporation is called a holding company. The second corporation is called a subsidiary.

Any related bodies corporate are grouped, even if they have holding companies overseas.

In this example, A Pty Ltd is the holding company of B Pty Ltd and C Pty Ltd, with more than 50% of the voting shares of each company. B Pty Ltd is the holding company of D Pty Ltd and E Pty Ltd. A Pty Ltd is the ultimate holding company.

All the companies in this example are grouped.

Diagram of how group formed by related bodies corporate

 

Businesses grouped under this category cannot apply for an exclusion from the group.

Last updated: 10 July 2024