Click this link for information on Completing page 1 of the Partnership tax return on the ATO website.

The information includes:

• Front Cover details for the Partnership

• Interposed Entity Election Status

• Revocation

• Family Trust Distribution Tax

• TFN of former partnership

• Item 1-Main Business activity

• Item 2-Status of business

• Item 4-Internet trading

Keep the following records for the Partnership:

• A copy of the partnership agreement; if none exists, a copy of the partnership's certificate of registration; in none exists, documentary evidence that partners were carrying on their activities as a partnership.

• Commencement date of the partnership or the date of reconstitution.

• Detailed statement of assets and liabilities.

• Details of each partner's capital accounts and sources of capital contributed.

• Details of each partnership bank account including the name and number of the account, the bank and branch at which it is kept, the date the account was opened and the names of the persons authorised to operate the account and the date of such authorisation.

• The family relationship of the partners and, if the partners are husband and wife, details of the nature and extent of the services rendered by each to the partnership.

• Whether the partners own jointly or in common, any property from which interest, dividends, rents or royalties are derived.

• The name in which business contracts are made.

• Details of any services rendered in the production of assessable income by a partner under 18 years of age, or by a beneficiary under 18 years of age in a trust where the trustee is a partner - details must include the nature, extent and value of the services rendered.

• Whether the partnership is constituted or conducted such that any partners cannot, of their own will, deal with any part of their share of the partnership income.

• Whether any partners are required to use any part of their share of the profits to meet any debt to another person.

• Records that show the partners have met the choice of superannuation fund employer obligations.

Front Cover details for the Partnership

Complete the following Front Cover details for the Partnership.

For information about where integrated data is sourced, refer to Names and Addresses in tax returns.

Interposed Entity Election Status

For information on completing this item click this link to the IEE status on the ATO website.

Revocation

An interposed entity election can only be revoked by the partners of a partnership that satisfy all the relevant conditions in section 272-85 of Schedule 2F to the ITAA 1936.

Family Trust Distribution Tax

FTD tax may be paid using a 'Family trust distribution tax payment slip' which is available on the ATO website.

The Standalone Interposed Entity Election Schedule (YY) may be lodged separately from the income tax return at any time. More than one standalone interposed entity election may be lodged via PLS each year. This schedule is accessed by clicking Preparation > Schedule > Standalone Interposed Election Schedule (YY).

TFN of former partnership

If this is the first tax return after a reconstitution, show the TFN of the former partnership in the box provided.

For reconstituted partnerships where the dissolution of the partnership was only technical and the partnership business carried on as per GSTR 2003/13, enter the retained TFN in the box provided, even though it is common to both the former and the reconstituted partnership.

Under the law, if the composition of a partnership changes - for example a partner retires or dies or a new partner is admitted, the partnership is dissolved and a new partnership formed.

If the change in the composition amounts only to a technical dissolution of the partnership, the partnership may be able to continue as a reconstituted continuing entity and, as such, it avoids the need to change its TFN and ABN, and only one partnership tax return is required at the end of the income year.

At the end of the income year a reconstituted continuing partnership needs to lodge only one partnership tax return covering the full income year. The tax return must include the distributions made to every person who was a partner at any time during the income year, including those who left the partnership during the year.

When lodging the partnership tax return, provide the following details:

• The date of dissolution

• The date of the reconstitution

• The names of the new, continuing and retiring partners

• The TFN or address and date of birth of all new partners, and

• Details of the changes if the persons authorized to act on behalf of the partnership changed.

Final tax return indicator

If the partnership does not expect to lodge further tax returns, select Yes for FINAL in the box provided at this item.

Attach a statement to the partnership tax return showing:

• The reason why further tax returns will not be lodged, and

• The manner of disposal of any assets of the partnership if not disclosed elsewhere on the tax return.

Prepare an ‘Other Attachments’ Schedule to be lodged with the return.

If it is the final tax return because the partnership has been reconstituted, also include in the statement the names of the partners in the new partnership and the trading name, if any, of the new partnership.

CCH References

5-000 A partnership for income tax purposes

Item 1 - Main Business activity

Click this link for information on Item 1 Description of the main business activity on the ATO website.

The description and industry code must both be completed if any business income and expenses are entered (Item 5).

Industry code

Use these Search facilities in the list of industry codes to locate the required code.

1. Click [F10] to access the list of industry codes provided to software producers by the ATO.

2. This Index may be sorted by clicking Code or Description headings.

• Key the first few characters of the Industry will shift to the first entry found matching those characters.

• Click into the text box, type the description you want to locate and press Search. All matching industry descriptions and codes are listed. Press Select to transfer the required details to the return.

Description: The description corresponding to the industry code selected transfers automatically to this item but should not be changed to a description that is outside the code selected for that industry.

Item 2-Status of business

Click this link for information on Item 2 Status of business on the ATO website.

Status of the business: Select the status code from the list available. If none of the selections apply, leave the selection blank. If more than one status is applicable, select the status with the lowest number.

Consolidation Status: If the partnership was a subsidiary member of a consolidated group, at any time during the income year, select code 2 from the list.

Tax provides the Consolidation Eligibility (Subsidiary) worksheet (ces) to assist with completing label Z. This worksheet provides checks to determine the eligibility of the entity to be a subsidiary of a consolidated group. Refer to Consolidation eligibility (subsidiary) (ces) . To open this worksheet, click Preparation > Schedule > Consolidation Eligibility (Subsidiary).

CCH References

8-000 Overview of the group consolidation regime

Label G1-Significant global entity

The significant global entity (SGE) concept is used to give clarity to taxpayers about whether they are within the scope of the measures to which the definition applies.

The concept of SGE was introduced as part of the Tax Laws Amendment (Combating Multinational Tax Avoidance) Act 2015 legislation which contains a package of measures announced as part of the 2016-17 Budget. These measures focus on combating multinational tax avoidance.

An entity is a SGE if it is:

• a global parent entity with an annual global income of A$1 billion or more, or

• a member of a group of entities consolidated for accounting purposes and one of the other group members is a global parent entity with an annual global income of A$1 billion or more.

To assist in identifying SGEs, from the 2016-17 income year and going forward, entities will be required to self-assess themselves under the definition of a SGE and notify the tax office on their annual income tax return at 'Status of fund or trust' (item 8, N).

The SGE concept is part of the following measures:

• The Multinational Anti-Avoidance Law (MAAL)

• General Purpose Financial Statement (GPFS)

• Country-by-Country (CbC) Reporting

• Increased administrative penalties for SGEs.

CCH References

13-050 Superannuation funds

13-100 Complying and regulated fund status

22-630-Transfer pricing records, penalties and thresholds

22-640-International cooperation on transfer pricing

30-200-Multinational tax avoidance

Item 4-Internet trading

Did you sell any goods or services using the internet?

Click this link for information on Item 4 Internet trading on the ATO website.