diff --git a/wagtail/wagtailusers/forms.py b/wagtail/wagtailusers/forms.py
index cdcb561c5..06ae6bbbf 100644
--- a/wagtail/wagtailusers/forms.py
+++ b/wagtail/wagtailusers/forms.py
@@ -179,7 +179,7 @@ class GroupForm(forms.ModelForm):
         # be clobbered by this form.
         try:
             untouchable_permissions = self.instance.permissions.exclude(pk__in=self.registered_permissions)
-        except AttributeError:
+        except ValueError:
             # this form is not bound; we're probably creating a new group
             untouchable_permissions = Permission.objects.none()
         group = super(GroupForm, self).save()
diff --git a/wagtail/wagtailusers/templates/wagtailusers/groups/create.html b/wagtail/wagtailusers/templates/wagtailusers/groups/create.html
index dd9f34806..5ea5fd4bd 100644
--- a/wagtail/wagtailusers/templates/wagtailusers/groups/create.html
+++ b/wagtail/wagtailusers/templates/wagtailusers/groups/create.html
@@ -1,5 +1,6 @@
 {% extends "wagtailadmin/base.html" %}
 {% load image_tags %}
+{% load wagtailusers_tags %}
 {% load i18n %}
 {% block titletag %}{% trans "Add group" %}{% endblock %}
 {% block bodyclass %}menu-groups{% endblock %}
@@ -13,9 +14,17 @@
         <div class="nice-padding">
             <ul class="fields">
                 {% include "wagtailadmin/shared/field_as_li.html" with field=form.name %}
-                {% include "wagtailadmin/shared/field_as_li.html" with field=form.permissions %}
+                {% format_permissions permission_bound_field=form.permissions %}
+                {% include "wagtailusers/groups/includes/page_permissions_formset.html" with formset=formset only %}
                 <li><input type="submit" value='{% trans "Add group" %}' /></li>
             </ul>
         </div>
     </form>
 {% endblock %}
+{% block extra_js %}
+    {% include "wagtailadmin/pages/_editor_js.html" %}
+
+    <script type="text/javascript">
+        {% include "wagtailusers/groups/includes/page_permissions_formset.js" with formset=formset only %}
+    </script>
+{% endblock %}
diff --git a/wagtail/wagtailusers/templatetags/wagtailusers_tags.py b/wagtail/wagtailusers/templatetags/wagtailusers_tags.py
index 074700460..cee2f722e 100644
--- a/wagtail/wagtailusers/templatetags/wagtailusers_tags.py
+++ b/wagtail/wagtailusers/templatetags/wagtailusers_tags.py
@@ -30,7 +30,7 @@ def format_permissions(permission_bound_field):
     permissions = permission_bound_field.field._queryset
     # get a distinct list of the content types that these permissions relate to
     content_type_ids = set(permissions.values_list('content_type_id', flat=True))
-    initial = permission_bound_field.form.initial['permissions']
+    initial = permission_bound_field.form.initial.get('permissions', [])
 
     object_perms = []
     other_perms = []
diff --git a/wagtail/wagtailusers/views/groups.py b/wagtail/wagtailusers/views/groups.py
index 1c6347239..796b678f3 100644
--- a/wagtail/wagtailusers/views/groups.py
+++ b/wagtail/wagtailusers/views/groups.py
@@ -80,19 +80,30 @@ def index(request):
 
 @permission_required(change_user_perm)
 def create(request):
+    GroupPagePermissionFormSet = inlineformset_factory(
+        Group,
+        GroupPagePermission,
+        formset=BaseGroupPagePermissionFormSet,
+        extra=0
+    )
     if request.POST:
         form = GroupForm(request.POST)
-        if form.is_valid():
+        formset = GroupPagePermissionFormSet(request.POST)
+        if form.is_valid() and formset.is_valid():
             group = form.save()
+            formset.instance = group
+            formset.save()
             messages.success(request, _("Group '{0}' created.").format(group))
             return redirect('wagtailusers_groups_index')
         else:
             messages.error(request, _("The group could not be created due to errors."))
     else:
         form = GroupForm()
+        formset = GroupPagePermissionFormSet()
 
     return render(request, 'wagtailusers/groups/create.html', {
         'form': form,
+        'formset': formset,
     })