Does the 30 June 2027 rule apply to a partnership?

The rule looks at each partner, not the partnership

A partnership does not pay tax on its capital gains. Under the CGT rules, a gain on a partnership asset, such as goodwill, plant or a lease, is made by the partners individually, in the shares set by the partnership agreement (or by partnership law if there is no agreement). Each partner holds their own interest in each partnership asset, with its own cost base.

The ATO describes the 1 July 2027 change as replacing the 50% CGT discount for individuals, trusts and partnerships. But the transitional rule that sets a 30 June 2027 market value has no separate section for partnerships. It works through the partners, so the useful question is which of the partners it reaches.

This answer is about ordinary partnerships, such as a professional practice or family business run by partners. Some limited partnerships are taxed like companies, so check which kind you have with your tax adviser.

When the partners are different kinds of entity

Many partnerships mix partner types: a couple as individuals, or a family trust beside a company. Then the same business can be inside the rule for some partners and outside it for others.

Each affected partner, with their own tax adviser, uses market value unless they choose an apportioning method, once one is made. That choice is made with the tax return for the year the interest is later sold, so partners in the same business can choose differently.

What a valuer values for a partnership

Where a partner's adviser decides market value suits, the usual starting point is one valuation of the partnership business as at 30 June 2027, with each partner's share set out from it under the partnership agreement. Goodwill is often the largest asset in a practice or trading partnership. Because each partner holds an interest in each asset, the report should show how value sits across goodwill and the other assets, not just one total.

• The signed partnership agreement, including how capital, profits and goodwill are shared
• Financial statements to 30 June 2027, once they are prepared
• A list of partnership assets and roughly when each was acquired
• Who each partner is: an individual, a trust or a company

We charge one fixed fee of $999 + GST for a full valuation report on one business or ownership interest with annual turnover under $10 million. The fixed fee applies once we confirm the interest, purpose, structure and records fit the fixed-fee scope. Anything outside it is quoted in writing before we start. A valuation as at 30 June 2027 is prepared after that date, once your records to 30 June 2027 are available. You can book your place now.

We value businesses and business interests. We do not give tax advice: whether a partner needs a valuation, or may use an apportioning method once one is made, is a question for their tax adviser.