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If you are a partner in a partnership business, you need to get TFN and ABN for your partnership and must lodge an annual partnership tax return. Your partnership doesn’t pay income tax on the profit it earns – each partner of your partnership reports their share of the partnership income in their own tax return and pays tax on their share of the partnership at the individual tax rate.
A partnership is a group or association of people who carry on a business and distribute income or losses between themselves. For example, if you and a friend or family member decide to set up a business together, you might operate it as a partnership. A partnership is relatively inexpensive to set up and operate. The partners share income, losses, and control of the business. A written partnership agreement is not essential for a partnership to exist but is a good idea. A partnership agreement should outline how income or losses will be distributed to the partners and how the business will be controlled. A partnership agreement can help prevent misunderstandings and disputes about what each partner brings to the partnership and what they are entitled to receive from the income of the business. This is particularly important for tax purposes if the profit or losses are not distributed equally among partners. The partners in a partnership are not employees, but the partnership might also employ other workers. Partners are responsible for their own superannuation arrangements. However, the partnership is required to pay superannuation for its employees.
In a partnership business structure:
As a partner, you can't claim deductions for money drawn from the business. Amounts you take from a partnership are not wages for tax purposes.
For more information on the partnership, visit the ATO website at https://www.ato.gov.au/
For further information please visit ATO website.