This topic provides information on the following items that relate to partnerships only:
- assessable income for partnerships, and
- partnership salaries.
Assessable income for partnerships
Assessable income is the pensioner's share of the gross income of the partnership, less allowable deductions. If the partnership makes a loss, the loss cannot be offset against income from unrelated sources.
Partnership salaries
Any salary paid by a partnership to one or more of the partners, is an allowable business deduction for income test purposes. The following table describes how salary paid to a partner, who is a pensioner, is treated for the in — come tests.
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If salary is paid to a pensioner... |
Then... |
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and the partnership makes a profit |
the salary is added to the pensioner's profits from the partnership to determine their business income. |
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and the partnership makes a net loss |
the partner's share of the loss can be offset against any salary paid to them by the partnership. For example, if the pensioner's salary is $6,000 and their share of the partnership loss is $3,500, then their assessable income is $2,500. |