b'ESVDoing business in AustraliaPartnershipsThe definition of a partnership is considered Income derived by the partnership retains to include taxpayers in receipt of incomeits nature in the hands of the partners.jointly as well as more formally establishedThere is no capital gains tax in a partnership partnerships. as each partner is deemed to own a share Every partnership is required to prepare andof each of the assets of the partnership, and lodge an income tax return, however, there isaccordingly, any gain or loss on the disposal of no tax liability at the partnership level. an asset is also shown at the partner level.The relevant portion of the taxable income or loss of a partnership is returned in the income tax return of each of the partners, which is then taxed in their hands.'