• Partnerships

    Complete and lodge partnership tax returns progressively so there is sufficient time to allow lodgment of the partners’ tax returns by their lodgment due date.

    Partnerships that operate on approved SAPs must lodge their tax return by the last day of the fourth month after the close of the accounting period adopted.

    When not to lodge

    Do not lodge a partnership tax return where your client was not in a partnership carrying on a business and the only income derived jointly (or in common) with another person was:

    • rent from a jointly owned property
    • interest from a jointly held account
    • dividends from jointly held shares.

    In these instances, each person shows their share of the income and expenses at the appropriate items on their own tax return.

    Do not lodge a partnership tax return if:

    • the partnership was a subsidiary member of a consolidated group for the full income year
    • we have approved an application for exemption from lodging a partnership tax return.

    Exemption from lodging a partnership tax return

    We may grant an exemption if each partner gives an undertaking to provide details of all relevant income, expenditure and deduction items, as well as distribution details, on their own tax return.

    The application for exemption must confirm that the partners have authorised you as their tax agent to show information about the partnership on each partner’s tax return. If granted, an exemption applies to all future year tax returns until the partners or we cancel the exemption.

    We will not grant an exemption if a partner is claiming a credit for amounts withheld under the no-ABN withholding rules from payments made to the partnership.

    Last modified: 30 Jun 2017QC 34563