2025 Tax Obligations for Partnerships in Australia

Last update: Apr. 25, 2025

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How Tax Works in a Partnership

• The partnership must lodge a tax return each year to declare total income and expenses.
• Each partner includes their share of profit or loss in their individual tax return.
• Tax is paid by the partners, not by the partnership itself.

TFN Requirement for Partnerships

A Tax File Number (TFN) is mandatory for every partnership to lodge its annual return. Without it, penalties and delays may occur. Each partner also needs their own TFN for personal tax obligations.

How to Register a TFN for a Partnership

The easiest way to register for a TFN and ABN as a partnership is through our secure online system:

• Visit our ABN + TFN registration form.
• Select 'Partnership' as your business structure.
• Provide partner details and business information.
• Submit securely online.

Click here to register your partnership's TFN and ABN now.

FAQ - 2025 Partnership Tax in Australia

Does a partnership pay tax in Australia?

No. The income is split among the partners who each pay tax individually.

Do we need a TFN for a new partnership?

Yes. The ATO requires every partnership to have its own TFN and lodge a separate tax return.

Can I use my personal TFN for partnership income?

No. The partnership needs its own TFN, separate from individual partners' TFNs.

What happens if we don't lodge a partnership return?

You may face penalties, and partners' individual returns may be flagged or delayed.

Can two friends start a business as a partnership?

Yes. As long as both are legally responsible and share profits, it qualifies as a partnership structure.