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?


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.

|improve this answer|||||
  • 1
    @oxinabox - yes that is exactly what I said in my answer, you have to submit both an individual and a Partnership Tax Return, and you report your portion of any income or loss from the Partnership in your individual Tax Return. However, you cannot use the losses against your other income unless you meet one of the income tests, the first test and most appropriate for you being that the Partnership Revenue is more that $20,000. – Victor Jul 20 '15 at 10:35
  • Yes, Indeed you did. Your answer helped me find that. So I thought I would give you and future readers the link, so they could look there for more information, beyond your great answer. (sorry I thought I posted this comment weeks ago, but my internet connection was dropping in and out at the time, I guess it dropped out.) – Lyndon White Aug 6 '15 at 10:48

Your Answer

By clicking “Post Your Answer”, you agree to our terms of service, privacy policy and cookie policy

Not the answer you're looking for? Browse other questions tagged or ask your own question.