If I have form a partnership which has done nothing but lose money, do I need to declare anything on my Tax?

Question

I formed a partnership 6 month ago, with a ABN and a registered bussiness name. It is a very small affair, it has less than $1000 capital in total (across all partners).

So far it has just lost money, in developing a product. The product hasn't yet eventuated into something sellable. It might later, it might not. The money (and time) in the partnership was always just what I could afford to lose for the experience.

Australia partnerships are not a taxable entity, any income or loss is transferred to the personal tax of the owners. Since the partnership has made no income and thus I have made no income from the partnership, and I don't wish to make any deductions based on my losses from the partnership (I've already maxed out my deductions to be paying no tax due to being on a low income from my day job expenses.)

So do I need to include anything regarding the partnership on my Tax Return?

Answer 1

Firstly if your Partnership makes less than $20,000 in revenue (before expenses are applied), then you cannot claim any net losses from the Partnership against your other income.

However, you still need to include the Partnership details in your Tax Return showing your portion on the net loss, and you will also be required to submit a separate Tax Return for the Partnership showing the net losses.

Any net losses from the Partnership will be carried forward to future tax years and can be used as a deduction against your Partnership Income when and if it does start to make a profit.