Tax Agent Perth
A partnership is a business structure consisting of two or more people. Who distribute the net income or losses among themselves. During the tax season, a partnership needs to file a tax return separately apart from each individual in the partnership.
If you want to lodge a Partnerships Tax Return for your partnership. It is recommended you get in touch with tax agents to help you with all the complexities of Australian tax returns.
Now let’s understand all about partnership and lodging partnerships tax return in Australia.
There are various features of a partnership structure. Some are as follows:
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A business partnership in Australia has its own TFN (Tax File Number) but does not have to pay any income tax on the profit it earns. Rather, each partner pays tax on their individual share of the net income the partnership earns.
However, a separate tax return needs to be lodged for the partnership. And each partner must also lodge their tax returns declaring their share of profit or loss in the partnership. It allows the business deductions and expenses to be separated from the personal finances. Some deductions may be unavailable to the partnership. But they can be claimed by the individual partners in their respective tax returns.
The declaration of the partnerships tax return must include the following:
Each partner in the partnership needs to include the following in their tax returns:
For CGT (Capital Gains Tax) purposes, each partner:
It must be noted that the individual tax returns by each partner have to be filed irrespective of whether they actually receive their share of income or not.
The below-mentioned steps are to be followed for lodging a partnership tax return:
SBR or Standard Business Reporting is a standard approach to digital or online record-keeping for simplifying business reporting obligations. You can lodge your partnership tax return directly from your SBR-enabled business software.
Your SBR-enabled software will use a credential that will allow you to securely submit your tax return to the Australian Taxation Office (ATO). When using the cloud-based SBR software, you don’t have to create this credential. Instead, your software provider will create it in your software. For a desktop or locally hosted SBR software (not cloud), you will have to use the Relationship Authorisation Manager to create a machine credential.
You can contact a registered tax agent to lodge your partnership tax return. Your tax agent should be registered with the TPB (Tax Practitioners Board). So you will get consumer protection using a registered tax agent as the TPB ensures that your agent meets and maintains the required standard or experience and qualifications and complies with the Code of Professional Conduct.
Most registered tax agents can lodge tax returns for their clients after October 31 (the usual deadline) under a special lodgment program. The due date depends on your personal situation too. You should contact a reputed partnership tax agent who can prepare and lodge the tax return for your business partnership properly.
You can file your partnership tax return by yourself by the due date of October 31. If you cannot lodge your return by the due date, you can contact the ATO before October 31 to find out whether or not you can lodge it at a later date.
You need to post your lodgment at the below postal address:
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Whether you lodge your partnership tax return using a registered tax agent or by yourself. Always go through all the above-mentioned points and check the latest regulations at the official website of ATO. Though you can lodge the return all by yourself, still it is recommended to consult one of the leading tax agent services. The Tax Agent Perth as they always keep up with the various tax laws and will help you prepare and file your return in a proper way, reducing the risk of any error.