Partnership Tax Return 2025 – Guidance Overview
These instructions will help you complete your Partnership Tax Return for the 2025 financial year. Please note, they are intended as a guide and do not replace detailed income tax law. You may need to consult additional publications or seek professional advice to fully understand your obligations.
In these instructions, “you” or “your business” refers either to the partnership conducting the business or to the registered tax agent or partner responsible for preparing and lodging the return.
The document uses abbreviations for certain technical terms, which are spelled out fully the first time they appear. A full list of abbreviations is available for your reference.
Lodgement Deadlines and Extensions
The due date for lodging the 2025 Partnership Tax Return is 31 October 2025, unless you have been granted an extension or a registered tax agent is lodging the return on your behalf with a later deadline. If you expect you won’t meet this deadline, please contact the Australian Taxation Office or your tax advisor as soon as possible before 31 October to discuss your options.
You can mail your completed Partnership Tax Return to the address provided by the ATO or lodge electronically via the Business Portal. Refer to the “Schedules” section to see which schedules you may need to include with your 2025 return.
Deductions for Australian Investment Income (Item P)
At item P, report expenses related to earning interest and dividend income. For instance, if your partnership received dividends from a Listed Investment Company (LIC) that include a LIC capital gain amount (as shown on the dividend statement), you may be eligible to claim a deduction for half of that capital gain.
Keep in mind that some expenses associated with borrowing or servicing debt might be restricted by the thin capitalization rules. Any amounts disallowed under these rules will reduce the deduction claimed at item P.
Deductions for the decline in value (depreciation) of assets used to earn interest and dividends generally go at item P. However, if your partnership has allocated certain assets to a low-value pool, those deductions might need to be reported at item Q—see Appendix 6 for details.
If your partnership has incurred interest expenses related to a collapsed Managed Investment Scheme (MIS), please refer to the specific guidance on deductions for these cases under the agribusiness MIS restructure rules.
Taxation of Financial Arrangements (TOFA) Rules
If the TOFA rules apply to your partnership, all deductions related to Australian investment income from financial arrangements subject to TOFA must be included at item P.
For further guidance or personalized assistance, please contact your Perth-based tax advisor or consult the Australian Taxation Office’s official publications.