Partnership Tax Return Services | Experienced Tax Agent Sydney

Partnership Tax Services - Tax Agent Sydney

A partnership is the simplest way for two or more people to run a business together. It is not a separate legal entity for tax purposes, so the partnership itself does not pay income tax. Instead, profits and losses flow through to the partners, who include their share in their personal tax returns and pay tax at their marginal rates.

What’s Included in Our Partnership Tax Return Service

Our comprehensive service for partnership tax returns ensures your obligations are met accurately and efficiently. We provide:

Preparation and Lodgment of the Partnership Tax Return- Complete preparation and electronic lodgment with the ATO, ensuring compliance and timely submission.
Profit and Loss Allocation to Partners- Accurate calculation and distribution of income, losses, and capital gains to each partner based on the partnership agreement.
Capital Gains Tax (CGT) Reporting - Detailed CGT calculations for partnership-held assets, including shares, property, and crypto.
Review of Deductible Expenses - Identification and validation of deductible business expenses to maximise tax efficiency.
ATO Correspondence Management - Handling of ATO queries, notices, and audit support related to the partnership return.
Annual Tax Planning Review - Strategic review to identify opportunities for tax savings and ensure optimal structure for the coming year.

Key Tax Benefits of Partnerships:

Income Splitting - Profits can be distributed among partners, potentially reducing overall tax liability.
Pass-through taxation means no double taxation.
50% CGT discount applies to assets held for more than 12 months (via the partners).
Easy and inexpensive to set up compared to companies and trusts.

Limitations of Partnerships:

Wages - Partnerships do not typically pay wages to partners as they are not considered employees.
Superannuation - Partners are responsible for their own superannuation contributions.
Tax Losses can offset other income for partners but are subject to non-commercial loss rules.
No ability to retain profitsin the structure; all income is taxed to partners annually.
Limited asset protection - partners are personally liable for debts.

Best for: Small businesses or professional practices with low risk, few owners, and simple operations.

Partnership vs Trust vs Company: Which Structure Delivers the Best Tax Outcome in Australia?

Choosing the right business structure is one of the most important decisions for Australian business owners. It affects tax obligations, asset protection, profit distribution, and long-term flexibility. Below, we compare Partnerships, Trusts, and Companies from a tax perspective.

Quick Summary

Partnerships are simple and allow profits and losses to flow through to partners, but offer less flexibility and asset protection.
Trusts offer flexible income splitting and access to the 50% CGT discount, but undistributed income is taxed at the top marginal rate.
Companies are ideal for businesses that want to retain profits for reinvestment, taxed at 25% or 30%, with franking credits on dividends.

Here's a comprehensive blog-style breakdown on Partnership vs Trust vs Company

Partnership Tax Return - What We Do

We provide end-to-end assistance for small business owners and investors who need their Partnership Tax Return prepared and lodged:

Prepare your Accounts - using Xero Software or Elite Ledger
Cashbook Template - Provide a Cashbook Template if you prefer to DIY
Review your ABN income - Review your ABN income and business activity
Capital Gains & Losses - Calculate Capital Gains & Losses for Share Traders and Investors operating from within a Partnership structure
Deductions - Identify and claim deductions all eligible business & investment expenses
ABN setup & GST Registration - Help with ABN setup & GST Registration ensuring compliance from the start
BAS returns - Reconcile BAS returns for accurate reporting
Depreciation Schedules - Take care of Depreciation Schedules & Instant Asset Write Offs
Motor Vehicle Calculations - Look after Motor Vehicle Calculations & Help you with Logbooks
Closing Stock Accounts - Reconcile Closing Stock Accounts for inventory accuracy
Payroll & Superannuation - Reconcile Payroll & Superannuation to meet employer obligations
Partnership Held Investments - Reconcile Partnership Held Investments for tax and reporting purposes
Income & Loss Statement - Prepare Income & Loss Statement for financial clarity
Balance Sheet - Prepare Balance Sheet showing your partnership's financial position
Profit Splits - Calculate Partnership profit share splits
Partnership Tax Return - Prepare & lodge the Partnership Tax Return

Partnership Tax Information Required Checklist

To prepare your Partnership Tax Return, you’ll need:

Category	Required Documents / Information
Partnership Name and ABN	Basic details to identify and lodge your partnership return.
Partner Details	Names, addresses, and TFNs for all partners involved.
TFN and Prior Year Return	Helps us review continuity and any carried-forward items.
Financial Statements	Full set of Financial Statements including Profit & Loss and Balance Sheet.
Bank Statements	Covering the financial year to verify income and expenses, asset and liability movements.
Income Details	Including trading income, rent, interest, or other revenue.
Capital Gains	From asset disposals such as property, shares, or crypto.
Business Expenses	Including rent, wages, subscriptions, and professional fees.
Super Contributions	For any employees paid through the partnership.
Depreciation Schedules	If applicable, for business assets.
Loan and Finance Details	Including interest expenses and loan balances.
Income Splits	How profits or losses were allocated between partners.
Any Prior-Year Losses	Carried forward for offset against current year income.
ATO Correspondence	Notices or letters received during the year.

Some of The Industries We Work With

Tradies & Contractors - From tool deductions to vehicle expenses, BAS Returns to TPAR's - we help tradies maximise their claims and stay compliant.
Rental Property Investors - We specialise in depreciation schedules, negative gearing, and capital works deductions to optimise your return.
Conveyancers - We advise on the GST approach for Tax Invoices, attend to professional indemnity considerations, track deductible business expenses, prepare & lodge BAS Returns, and look after your Partnership Tax Return.
Mortgage Brokers & Finance Professionals - We handle commission income, aggregator fees, and ensure accurate reporting of GST and PAYG.
Share Trading Investors & Traders - Whether you're a casual investor or a full-time trader, we help with CGT calculations, trading stock treatment, and record-keeping.
Management Consultants - We assist consultants in navigating common challenges such as distinguishing between personal and business expenses, managing GST obligations, handling contractor vs employee classifications, and ensuring accurate income reporting.

Why Choose Us?

ATO-Registered Tax Agents with years of experience
Tailored Solutions for partnerships of all sizes
Deadline Management to avoid penalties
Transparent Pricing with no hidden fees
Local Expertise - Sydney-based, serving clients Australia-wide
Trusted by individuals, families, small businesses and investors

Partnership Tax Return