The partnership does not pay income tax on the income it earns. Instead, you and each of your partners pay tax on the share of net partnership income you each receive.
The partnership reports its net income on a partnership tax return. This includes the partnership’s assessable income less allowable expenses and deductions.
As an individual partner, you report the following on your individual tax return:
* your share of any partnership net income or loss
* any other assessable income, such as salary and wages, dividends and rental income.