Business Accounting
Partnership Tax Returns
A partnership return that reflects your agreement, distributes income correctly and lines up with each partner's personal tax return.
Overview
How we can help
A partnership lodges its own tax return each year, but it doesn't pay income tax itself. Instead, each partner includes their share of the partnership's net income or loss in their own return.
We prepare the partnership accounts and return, calculate each partner's share according to your agreement, and coordinate the partners' individual returns so the figures match.
What's Included
Our partnership tax returns service
Partnership accounts
Income, expenses and balance sheet for the partnership.
Partnership return
Prepared and lodged with partner distributions.
Partner statements
Each partner's share clearly documented.
Partner returns
Individual returns aligned with the partnership.
BAS
GST and PAYG for the partnership.
Changes in partners
Handling partners joining or leaving.
Good to Know
Key things to know
Official sources
- 01
The partnership doesn't pay tax
Partners pay tax on their share of the net income at their own rates. Losses are generally shared in the same way.
- 02
Follow your agreement
Income is generally distributed according to the partnership agreement or each partner's interest. A clear written agreement avoids disputes.
- 03
Salaries to partners
Payments described as 'wages' to partners are generally treated as distributions of profit, not deductible wages.
- General information only, current at the time of writing. Rules change — please confirm how they apply to you.
FAQs
Common questions
General information only. Your circumstances may differ — contact us for advice specific to you.
Does a partnership need its own ABN and TFN?
Yes. A partnership needs its own tax file number to lodge a return, and an ABN if it's carrying on an enterprise.
Can partners split profits however they like?
Profit is generally split according to the partnership agreement or the partners' interests. Changing the split usually requires changing the agreement.
What happens if a partner leaves?
Depending on the circumstances, a change in partners can have tax consequences, including capital gains. We'll help you work through them.
Enquire
Ask about partnership tax returns
Tell us briefly what you need. We'll reply to arrange a time to talk and confirm the fee before any work begins.