Removing a partner from an Australian Business Number (ABN) partnership involves several steps and is subject to the terms of the partnership agreement. According to the Australian Securities & Investments Commission (ASIC), you can remove a partner online using ASIC Connect.
The process begins with linking your business name to your account, selecting your business name under the 'Lodgements and notifications' tab, and then choosing 'Change partner details' from the transactions list. After this, you'll select 'Remove a partner', enter the date of removal, and submit the transaction. It's important to note that removing a partner may affect the structure of the business and, in some cases, a new partnership may need to be formed as per the Australian Taxation Office (ATO) guidelines.
This could involve obtaining a new Tax File Number (TFN) and ABN for the new partnership, and lodging separate tax returns for the old and new partnerships. It's advisable to consult with a legal professional to understand the implications of such changes and ensure compliance with all legal requirements.