Knowledge Details

The answer is - it depends. Generally, the partners should register for an ABN, and for GST if the taxable supplies made by the partnership are greater than $75,000 per annum. The agent can register for an ABN and GST if it chooses - this is will depend on the circumstances and is up to the relevant agent and partnership. However, even if the agent registers for GST, the partners will still be responsible for the GST obligations of the partnership.

A partnership does not need an agent. However, in cases where there are more than 2 partners, it can have practical advantages. Because a partnership is not a legal entity, any arrangement/contract that the partnership enters into must be approved/signed off by all partners. That can be practically difficult. Using an agent reduces the day to day need to involve all partners. The agent generally will carry on the practical operations of a business but is responsible to the partners who are ultimately liable for the partnership debts.