Updated: March 2026

A partnership does not pay income tax on its profit. Instead, it lodges a partnership tax return reporting total income and expenses, and the net profit or loss is distributed to the partners. The partners then pay tax on their individual share of the profit.

Before your appointment with the Loyal Bright team, please gather the following information and documents for the financial year (1 July to 30 June):

1. Partnership Details & Structure

• Partnership Agreement: A copy of your formal Partnership Agreement (if we do not already have it on file).
• Profit/Loss Split: Confirmation of the percentage split of profits and losses among the partners for the financial year.
• Changes in Partners: Details if any partners joined or left the partnership during the year.

2. Financial Records

• Accounting Software Access: Please ensure your Xero, MYOB, or QuickBooks file is fully reconciled up to 30 June and invite us as your Accountant/Tax Agent.
• Bank Statements: Copies of bank statements for all partnership business accounts, showing the exact balance on 30 June.
• Loans & Equipment Finance: Statements for any business loans, chattel mortgages, or credit cards as of 30 June.

3. Income & Expenses

• Debtors & Creditors: A summary of who owed the partnership money (Accounts Receivable) and who the partnership owed money to (Accounts Payable) as of 30 June.
• Stocktake/Inventory: Your closing stock valuation as of 30 June (if you sell physical goods).
• Asset Purchases & Disposals: Invoices for any major equipment, vehicles, or property bought or sold by the partnership during the year.

4. Wages, Super & Partner Drawings

• Partner Drawings: A record of all cash or assets taken from the business by the partners. Note: Money drawn by partners is NOT treated as employee wages for tax purposes.
• Employee Payroll (STP): If the partnership employs staff (other than the partners), confirmation that Single Touch Payroll (STP) has been finalized for the year.
• Superannuation: Evidence of Superannuation Guarantee (SG) payments made for employees.
• Contractor Payments (TPAR): Details of payments made to contractors (especially in building/construction, cleaning, IT, or courier industries) so we can lodge your Taxable Payments Annual Report.

Tip: Ensuring your partnership records are accurate makes processing the individual tax returns for all partners much faster.

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