• Partnership and trust distributions - common mistakes to avoid 2011

    You should read this fact sheet if your clients are either of the following:

    • partners in a partnership
    • trustees or beneficiaries of a trust.

    Do you need to lodge a trust or partnership return?

    Attention

    Warning:

    This information may not apply to the current year. Check the content carefully to ensure it is applicable to your circumstances.

    End of attention

    If required by the Commissioner of Taxation, trusts need to lodge a trust tax return irrespective of the amount of income derived or distributions made. A trust that was a subsidiary member of a consolidated group for the full income year does not have to lodge a trust tax return.

    Partnerships need to lodge an annual partnership tax return. A partnership tax return is not necessary if one of the following applies:

    • the partnership was a subsidiary member of a consolidated group for the full income year
    • we approved an application for exemption from lodging a partnership tax return
    • the partnership's only income was rent, interest or dividends derived jointly (or in common) and it was not carrying on a business (each partner shows their share of the rent, interest or dividends and the associated expenses at the appropriate items on their individual tax return).

     

    Attention

    If your client is a partnership that does not have to lodge a tax return, you should either:

    • lodge a client update (CU) form
    • advise us through the Tax Agent Portal that the partnership does not need to lodge.
    End of attention

     

    Further Information

    For more information, refer to:

    End of further information
    Last modified: 13 Oct 2011QC 25050