Partnerships

A partnership would have its own TFN & ABN and you may be required to register for both GST (If turnover is above $75,000) and PAYG Withholding. In addition, you will be required to lodge a BAS (Business Activity Statement), monthly, quarterly or annually with the ATO.

It is recommended that a written partnership agreement is in place detailing each partner’s obligations and responsibilities. Each partner is responsible for paying tax on their share of income and is then taxed at their marginal tax rate. A partnership consists of 2 or more partners who are in business together with the intention of making a profit. Partners are responsible for all liabilities of the business.