Partnership

For the purposes of income and assets assessment, a partnership is the relationship which exists between people carrying on business in common, with a view to making a profit. A partnership agreement may be oral OR written. The business may be run:

•       in the owners' name(s), or
•       under a registered business name.

The business is not a separate legal entity, which means that although the partnership lodges a tax return, the profit or income is assessable in the hands of the individual partners.

Each partner:

•       owns an agreed portion of the business assets,
•       receives an agreed portion of the profits, and
•       is 'jointly and severally' liable for all business debts.