What is a tax partnership?

Tax partnership relates to married couples, couples living together (partners) or housemates who may determine who declares which amount of certain types of income and deductible items in their tax returns. You may then divide the balance of for example, the deductible expenditure on your owner-occupied property between you and your partner. You may make any division you wish, as long as the total is 100%. The partner with the highest income can, for example, deduct the expenditure. This offers you the largest tax advantage.

Couples living together and housemates must meet certain conditions to become tax partners. Are you married? Then you are automatically tax partners.