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Withdrawal from partnership 043-03130120

This document outlines the assessment of income and assets when a customer withdraws from a partnership.

Assessment of income and assets upon withdrawal from partnership

Step	Action
1	Customer advised they have withdrawn from partnership + Read more ... A customer, who is a partner in a business, advises they have withdrawn from the partnership Request written evidence, for example, a letter from the accountant who prepares the partnership income tax returns or stat declaration or acceptance letter from the other partners.
2	Will the customer receive any further income from the partnership? + Read more ... Yes, go to Step 3 No, no income from the partnership is to be maintained. Go to Step 4
3	Current rate of income + Read more ... The current 'rate' of income earned, derived or received is normally assessed. When a change in the customer's circumstances occurs, a reassessment is made and a new current rate of income is established. The customer's rate of payment recalculated accordingly.
4	Calculate the value of the customer's interest in the partnership + Read more ... Calculate the value of the customer's interest in the partnership as defined in the partnership agreement as at the date of withdrawal from the partnership. This calculation is based upon the customer's share of the assets of the business as detailed in the business financial statements. For the calculation process, see Assessing partnership assets.
5	Has a settlement been reached about the amount the customer is to receive as payment for their interest in the partnership? + Read more ... Yes, go to Step 6 No, the assessable value of the customer's share of the partnership should continue until settlement is reached. If property is involved and customer has no access to this, hardship provisions may need to be considered. Procedure ends here
6	Adequate share of the capital received by the customer? + Read more ... Was an adequate share of the capital received by the customer? See the Resources page for an example of adequate consideration not being received. Yes, go to Step 7 No, apply deprivation if the amount is less than the value of the interest previously held in the partnership by the customer. For more information, see Assessing deprivation/gifting. Go to Step 7
7	Update the customer's record with the actual amount received + Read more ... Update the customer's record with the actual amount received for their interest in the partnership, for example, money in the bank, car (asset) etc. For more information on coding, see Coding income and assets for Centrelink payments and services. Cease assessable value of customer's interest in the partnership.
8	If receiving an income support payment their record needs to be reassessed + Read more ... If a customer is receiving an income support payment, their record needs to be reassessed as their circumstances have changed.