Designated group employers for payroll tax

As a group member, you can become the designated group employer (DGE) by being nominated by the group or chosen by the Commissioner of State Revenue.

For Queensland payroll tax, the DGE must employ in Queensland. If you pay payroll tax in another state, you can have a different DGE in that state.

DGE nominated by the group

There are three ways the group can nominate you as the DGE:

• on registering for payroll tax
• via a final return
• via the annual return.

You can nominate yourself as the DGE when you register for payroll tax. If you are already registered and your status changes:

• from 1 July, you can make this change in the annual return
• on any other day, you must complete a final return.

DGE chosen by the Commissioner

For us to choose a DGE, you must tell us:

• the name of each group member
• an estimate of taxable and interstate wages for the current financial year to be paid by each member of the group
• if the members of the group are liable for payroll tax for prior periods and a deduction is to be claimed
• the actual taxable and interstate wages for each previous financial year paid or payable by each member of the group (or a reasonable estimate if the actual wages cannot be determined).

The estimates you provide must:

• explain why the actual wages cannot be supplied
• show the basis on which the estimates were worked out
• be acceptable to the Commissioner of State Revenue.

We usually select the group member with the largest Queensland wages to be the DGE. The DGE receives the deduction on behalf of the group, and can then nominate other members of the group to share any excess deduction after they have lodged their annual returns or when the group ceases to exist.

We will notify the DGE in writing when we:

• choose the DGE for your group
• change the DGE (we can change the DGE that we have chosen at any time).

Changing the DGE

You can stop being the DGE by completing:

• an annual return if your status is to change on 1 July
• a final return if your status changes on any other day. (You’ll also have to complete a mental health levy final return.)

You will stop being a DGE at the earlier of the following events:

• your group members tell us in writing that you are no longer the DGE, and we provide our written consent
• your group members choose a replacement DGE at the same time that you stop being the DGE.

We can change the DGE that we have chosen at any time by notifying the DGE in writing.

Learn more about reporting changes in business conditions.

Also consider…

• Register for a payroll tax seminar.