Accountant for New Partnerships

How partnership setup usually works

A practical accountant for new partnerships will begin with a short discovery call to confirm who the partners are, how profit will be split, whether you need GST, and what software and bank accounts you will use. From there, the work typically moves through four stages.

• Registrations: ABN and TFN for the partnership, GST if required, and PAYG withholding if you will employ staff.
• Agreement and ownership: Coordinate with your lawyer on a partnership agreement that sets profit share, decision rights, capital contributions and exit terms.
• Software and chart of accounts: Configure Xero/MYOB/QuickBooks with separate equity, drawings and current accounts for each partner plus GST and BAS settings.
• Compliance cadence: Set BAS (usually quarterly), super for employees, PAYG instalments, and the annual partnership return with partner distribution statements.

Australian rules to keep in view

• ABN is required before GST registration. Partnerships also need a TFN separate from each partner’s TFN.
• If you do not quote an ABN, payers may need to withhold 47% from payments in many situations.
• Register for GST when projected turnover reaches $75,000. Choose cash vs accrual GST based on invoicing and cash flow.
• Partners are not employees. Do not put partners through payroll or STP. Super and PAYGW apply to employees only.
• Industries such as building and construction, cleaning, courier and road freight, IT services, and security may need to lodge a TPAR.
• Due dates: BAS quarterly, super quarterly, STP each pay run for employees, and the partnership tax return (P form) annually.

If you are still deciding between structures, read Business Structure Advice and compare a partnership with a company or trust before you commit.

What to compare before you commit

Common mistakes new partnerships can avoid

• Using a joint bank account in personal names instead of opening an account in the partnership’s name.
• Paying partners “wages” through payroll or super rather than recording drawings and profit share.
• Not documenting the profit split or leaving it out of the partnership agreement.
• Skipping GST registration when turnover is on track to exceed $75k, leading to catch-up BAS and cash flow stress.
• Combining personal and business spend, which muddies equity balances and profit allocations.
• Delaying bookkeeping, which makes the first BAS and the first partnership return more expensive and slower.

Best next steps

1. Decide the profit share and capital contributions for each partner.
2. Open a bank account in the partnership name and keep business spend separate.
3. Register ABN and TFN for the partnership and add GST if needed. See ABN Registration Help.
4. Choose your software and set up partner equity/drawings. Use our New Business Accounting Checklist.
5. Confirm BAS cycle, PAYG instalments, and year-end timelines with your accountant.

If you are still early, start with Business Name and Tax Set Up and then come back here to finalise the partnership workflow.