Partnership Tax Return

Partnership Tax Return

General information

You do not need to lodge a partnership tax return if you were not in a partnership carrying on a business. You do not need to lodge a partnership tax return where the only income you derived jointly (or in common) with another person was:
  • rent from a jointly owned investment property
  • interest from a jointly held account
  • dividends from jointly held shares.
In these instances, each individual shows their share of the income and expenses at the appropriate items on their own individual tax return.

Partnership records

Keep the following records:
  • a copy of the partnership agreement; if none exists, then a copy of the partnership’s certificate of registration, or if that doesn't exist, then documentary evidence that the partners were carrying on their activities as a partnership
  • commencement date of the partnership or the date of reconstitution
  • detailed statement of assets and liabilities
  • details of each partner’s capital accounts and sources of capital contributed
  • details of each partnership bank account including the name and number of the account, the bank and branch at which it is kept, the date the account was opened and the names of persons authorised to operate the account and the date of such authorisation
  • the family relationship of the partners and, if the partners are husband and wife, details of the nature and extent of the services rendered by each to the partnership
  • whether the partners own jointly or in common, any property from which interest, dividends, rents or royalties are derived
  • the names in which business contracts are made
  • details of any services rendered in the production of assessable income by a partner under 18 years old, or by a beneficiary under 18 years old in a trust where the trustee is a partner; details must include the nature, extent and value of the services rendered
  • whether the partnership is constituted or conducted such that any partners cannot, of their own will, deal with any part of their share of the partnership income
  • whether any partners are required to use any part of their share of the profits to meet any debt to another person
  • records that show you have met your choice of superannuation fund employer obligations;
  • (Source: https://www.ato.gov.au/Forms/Partnership-tax-return-instructions-2020/?anchor=Generalinformation#Generalinformation)

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