Knowledge Details

The procedure and consequences of the exit of partners is usually included in a partnership agreement. The existing partners and the new partners can agree as to the terms of the admission of a new partner.

Note that when the membership of a partnership changes, that partnership is often considered to have come to an end, and a new partnership, with new partners, comes into existence.

Legally, yes. The ATO has some administrative solutions to this, though, so that registrations, etc, do not always need to be changed each time a partner is added or leaves.