Assessment of Assets for Partnerships

Last updated: 1 June 2021

This topic provides information on the following:

•       assessable asset amount,
•       valuing the interest in a partnership,
•       verification of asset value, and
•       valuation of real estate.

Assessable asset amount

The amount to be taken into account for assets test purposes is the pensioner's interest in the partnership. Interest in the partnership is the amount that the pensioner would receive if the partnership were wound up, and depends on the:

•       net value of the partnership assets,
•       proportion of the net assets which the pensioner is entitled to receive, and
•       net amounts contributed or withdrawn by the individual partners.    
  More ?

   

  Assets

  Section 10.2.4 Assessing Personal Assets and Financial Investments

   

  Income and Assets Test

  Chapter 9.1 Income and Assets Test Principles

   

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Valuing the interest in the partnership

The proprietors' funds in a partnership:

• are calculated using the assets and liabilities shown in the financial accounts, and
• reflect the capital contributions and drawings of each partner.

Note: Each partner's share of the partnership funds are shown in the financial accounts as Proprietors' funds.

Pensioner's share of the proprietors' funds

The pensioner's share of the proprietors' funds is the total of both fixed and current capital accounts in their name, and this can be obtained from the written partnership agreement and/or the latest balance sheet. An initial estimate of the pensioner's interest in the partnership is the amount shown on the balance sheet as:

• their share of the proprietors' funds, and
• any loans they have made to the partnership.

Note: If a balance sheet is not available, a list of all partnership assets and liabilities, including their current values, may be required.

Verification of asset value

The recorded value of fixed assets, other than real estate, can generally be accepted for valuation purposes. Using conventional accounting methods, fixed assets are recorded at historical cost, usually the purchase price less depreciation.    

Valuation of real estate

The following table describes the requirements for valuation of real estate.