Insight Accounting Pty Ltd is a CPA Practice

Beaconsfield (03) 9707 0555

Cranbourne (03) 5995 2700

Pakenham (03) 5940 4555

Partnership

For tax purposes, a partnership is an association of people who carry on a business as partners or receive income jointly. A partnership is relatively inexpensive to set up and operate. A formal partnership agreement is recommended, but not essential.

If you operate your business as a partnership, control or management of the business is shared. Income and losses are shared among the partners. Each partner is responsible for the debts of the partnership, even if you did not directly incur or cause the debt.

If you operate your business as a partnership, it needs its own TFN that you use when lodging its annual business income tax return.

A partnership is not a separate legal entity and doesn’t pay income tax on the income it earns. Instead, you and each of your partners pay tax on the share of net partnership income you each receive.

As a partner, you pay the same tax as individual taxpayers, at personal income tax rates.

If you carry on an enterprise in Australia as a partnership, you can apply for an ABN for your business and use this number for all your business dealings. You can also attach a trading name to the ABN via a separate registration.

You can register for goods and services tax (GST) if you carry on an enterprise.

It is compulsory to be registered for GST if your annual GST inclusive turnover is $75,000 or more.

 

We provide services for:

  • Partnership Tax Return Preparation
  • Tax Planning
  • Capital Gains Tax
  • Business Advice
  • Business Plans
  • GST & PAYG Advice
  • BAS Preparation
  • Superannuation Tax Advice
  • Partnership Agreements
  • ABN Application
  • Business Name Registration
  • Forecast of Business Profit and Loss
  • Work Cover Registration
  • Bookkeeping Training (Cashflow Manager, Xero)
  • Form 19 / Section 52 Preparation

Unsure of what income and expenses you should bring in for your appointment?

Please feel free to refer to our Partnership Checklist.

Insight Accounting Pty Ltd is a CPA Practice

Limited Liability by a scheme approved under Professional Standards Legislation

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