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  • Completing the tax return – Page 1 Partnership tax 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

    Attachments to the tax return

    If these instructions ask you to provide additional information, attach the additional information to the tax return and print X in the Yes box at Have you attached any 'other attachments'? at the top of page 1 of the tax return. If, when you have finished completing this tax return, you have not attached any document to it, print X in the No box.

    Tax file number (TFN)

    Print the TFN of the partnership in the boxes provided.

    Name of partnership

    The partnership name should be consistent from year to year, except in the year of a name change.

    If the partnership name is legally changed, advise us in writing at the time the change is made.

    Australian business number (ABN)

    The ABN is a unique business identifier used in dealings with the Australian Government. It is also available to state, territory and local government regulatory bodies. Identification for tax law purposes is only one of the uses of the ABN.

    Full name of partner to whom notices should be sent

    Show the surname or family name and given names of the partner to whom notices should be sent. If the partner is a company, show the name and the ABN of the company.

    If the partner is a trustee of a trust, show the name of the trust and trustee. If the trustee is a company, show the name and ABN of the company.

    Interposed entity election status

    You must complete this item if any of the following apply:

    • The partners are making one or more interposed entity elections specifying a day in the 2004–05 or later income year in accordance with section 272-85 of Schedule 2F to the ITAA 1936.
    • The partners have previously made one or more interposed entity elections specifying a day in any income years from 1994–95 to 2016–17 in accordance with section 272-85 of Schedule 2F to the ITAA 1936 and, if applicable, items 23 or 23A of Schedule 1 to the Taxation Laws Amendment (Trust Loss and Other Deductions) Act 1998 and at least one interposed entity election has not been revoked in an income year before the 2017–18 income year in accordance with subsections 272-85(5) and 272–85(6) of Schedule 2F to the ITAA 1936.
    • The partners are revoking, from a time in the 2017–18 income year, one or more previously made interposed entity elections in accordance with section 272-85 of Schedule 2F to the ITAA 1936.

    A partner cannot make an interposed entity election specifying a year earlier than the 2004–05 income year (section 272-85 of Schedule 2F to the ITAA 1936). Do not attach election forms for an interposed entity election made specifying an income year before the 2004–05 income year to the Partnership tax return 2018.

    Instructions on how to complete the Interposed entity election or revocation 2018 are on the form itself.

    If the partnership’s tax return is not lodged electronically, and an Interposed entity election or revocation 2018 is being lodged with your partnership’s 2018 tax return, send your tax return and the Interposed entity election or revocation 2018, to:

    Australian Taxation Office
    GPO Box 9845
    [insert the name and postcode of your capital city]

    For example;

    Australian Taxation Office
    GPO Box 9845
    SYDNEY NSW 2001

    If the partners have not made or are not making any interposed entity elections, do not complete this item.

    If the partners are making one or more interposed entity elections specifying a day in the 2004–05 or later income year, write the earliest income year specified in the box at this item and complete an Interposed entity election or revocation 2018 for each election specifying a day in the 2004–05 or later income years.

    Example 1: New election specifying the current year

    The partners have not previously made an interposed entity election. They now want to make an interposed entity election specifying a day in the 2017–18 income year.

    They write 2018 in the box at this item.

    They complete an Interposed entity election or revocation 2018, specifying a day in the 2017–18 income year.

    They attach the completed form to their Partnership tax return 2018.

    End of example

     

    Example 2: New election specifying an earlier year

    The partners have not previously made an interposed entity election. They now want to make an interposed entity election specifying a day in the 2004–05 income year.

    They write 2005 in the box at this item.

    They complete an Interposed entity election or revocation 2018, specifying a day in the 2004–05 income year.

    They attach the completed form to their Partnership tax return 2018.

    End of example

    If the partners have previously made one or more elections specifying a day in an income year before the 2017–18 income year, write the earliest income year specified in the box at this item unless the partners are making one or more elections specifying a day in the 2004–05 or later income year.

    Example 3: Multiple existing interposed entity elections

    The partners have previously made interposed entity elections specifying a day in the 1997–98 and 2005–06 income years respectively. They are not making another interposed entity election.

    They write 1998 in the box at this item.

    The partners do not need to complete an Interposed entity election or revocation 2018.

    End of example

     

    Example 4: Additional election specifying a current year

    The partners have previously made an interposed entity election specifying a day in the 1996–97 income year and want to make another interposed entity election specifying a day in the 2017–18 income year.

    They write 2018 in the box at this item.

    They complete an Interposed entity election or revocation 2018, specifying a day in the 2017–18 income year.

    They attach the completed form to their Partnership tax return 2018.

    End of example

    If the partners have previously made one or more elections specifying a day in an income year before 2004–05 and took advantage of the former one-off opportunity in Law Administration Practice Statement PS LA 2004/1 (GA) Lodgment opportunity for family trust and interposed entity elections to specify an earlier year, write the earliest income year specified unless the partners are making one or more elections specifying a day in the 2004–05 or later income years.

    Example 5: Existing elections, taken advantage of the one-off opportunity

    The partners have previously made an interposed entity election specifying a day in the 2002–03 income year. The partners took advantage of the former one-off opportunity in Law Administration Practice Statement PS LA 2004/1 (GA) Lodgment opportunity for family trust and interposed entity elections requesting that the election apply from the 1997–98 income year.

    They write 1998 in the box at this item.

    The partners do not need to complete an Interposed entity election or revocation 2018.

    End of example

    Revocation

    An interposed entity election can only be revoked by the partners of a partnership that satisfy all the relevant conditions in section 272-85 of Schedule 2F to the ITAA 1936.

    The partners cannot revoke an interposed entity election unless the revocation is in respect of an income year that occurs during the period:

    • starting on 1 July 2007 and finishing on 30 June 2009
    • starting at the later of
      • the beginning of the income year specified in the election, and
      • the beginning of the income year in which the entity became a member of the family group and
      • finishing at the end of the fourth income year after the income year referred to in the above two dot points.
       

    The revocation must be made with the entity’s tax return for the income year from which the revocation is to be effective.

    Print R in the box at this item if the interposed entity election made by the partners is being revoked from the 2017–18 income year. An Interposed entity election or revocation 2018 must be completed and lodged with their Partnership tax return 2018.

    Example 6: Revoking an interposed entity election

    The partners have previously made an interposed entity election specifying a day in the 2007–08 income year and meet the conditions to revoke their interposed entity election in the 2017–18 income year.

    They write 2008 in the box at this item and print R in the box at this item. The partners need to complete an Interposed entity election or revocation 2018 and lodge this with their Partnership tax return 2018.

    An interposed entity election is taken to be revoked if the family trust election to which it relates is revoked.

    End of example

    Family trust distribution tax

    A consequence of a partnership making an interposed entity election is that under section 271-25 of Schedule 2F to the ITAA 1936 a special tax, called family trust distribution tax (FTDT), is payable at 47% on any conferral of present entitlement to, or distribution of, income or capital of the partnership to persons who are not members of the family group of the specified individual within the meaning of section 272-90 of that schedule.

    A distribution of income or capital by a partnership is defined in sections 272-55 and 272-60 of Schedule 2F to the ITAA 1936.

    Post the Family trust distribution tax payment advice with your FTDT payment to the ATO address:

    NSW, QLD or ACT residents

    Australian Taxation Office
    Locked Bag 1793
    PENRITH  NSW  1793

    VIC, SA, WA, Tas or NT residents

    Australian Taxation Office
    Locked Bag 1936
    ALBURY  NSW  1936

    Make cheques or money orders payable to the Deputy Commissioner of Taxation and print ‘Not negotiable’ across the cheque. Tender all cheques in Australian currency. Do not send cash by post. Other payment options are also available.

    See also:

    Final tax return

    Print X in appropriate box.

    If the partnership does not expect to lodge further tax returns, print X in the Yes box.

    Provide a statement stating:

    • the reason further tax returns will not be lodged, and
    • the manner of disposal of any assets of the partnership if not disclosed elsewhere on the tax return.

    If it is the final tax return because the partnership has been reconstituted, include in the statement the names of the partners in the new partnership and the trading name, if any, of the new partnership.

    Attach the statement to the tax return and print X in the Yes box at Have you attached any 'other attachments'? at the top of page 1 of the tax return.

    If the partnership became a subsidiary member of a consolidated group or MEC group during the year, print X in the No box on page 2 of the tax return if membership of the consolidated group or MEC group is the only reason for which the partnership will not be required to lodge future tax returns.

    Last modified: 12 Feb 2019QC 55245