SBA WERRIBEE - PARTNERSHIP
For tax purposes, a partnership is an association of people who carry on a business as partners or receive income jointly. A partnership is relatively inexpensive to set up and operate. A formal partnership agreement is common, but not essential. If you operate your business as a partnership, control or management of the business is shared. Income and losses are shared among the partners. Each partner is responsible for the debts of the partnership, even if you did not directly incur or cause the debt.
If you operate your business as a partnership, it needs its own TFN that you use when lodging its annual business income tax return.
If you carry on an enterprise as a partnership in Australia, you need an ABN for the partnership and use it for all the partnership’s business dealings. ABN is a single business identifier that allows businesses to deal with the Australia Taxation Office ( ATO) and other government departments and agencies with one identifier.
Goods and services tax, often known as GST, is a broad -based tax of %10 on the most goods, services and other items sold or consumed in Australia. GST applies to most Australian business and it’s highly likely that your business will be affected by tax.As a member of a partnership, you can apply for GST registration for the partnership if it is carrying on an enterprise. if your business is registered for GST, you’ll have to pay to collect some extra money (one-eleventh of the sale price) from your customers and pay it to the Australian Taxation Office when it is due.
You must register for GST if:
• your business has a GST turnover of $75 000 or more
• your non-profit organisation has a turnover of $150 000 per year or more
• you provide taxi travel for passengers in exchange for a fare as part of your business, regardless of your GST turnover. This rule applies to both taxi owner drivers and people who just rent a taxi
A partnership is not a separate legal entity and doesn’t pay income tax on the income it earns. Instead, you and each of your partners pay tax on the share of net partnership income you each receive.
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