(1)According to the principle that a partnership is a flow-through entity for income tax purpose:

(a)a partner need not pay tax on their share of the net income of the partnership because the partnership is liable for income tax;

(b)only franked dividends and capital allowances stream through the partnership to each of the partners in proportion to their share in the partnership - all other gains and losses remain trapped at the partnership level;

(c)where a partnership's allowable deductions exceed the assessable income of a partnership in an income year, the partnership will incur a tax loss which will be able to be claimed by the partners of that partnership in their individual income tax returns in proportion to each of their interests in the partnership;

(d)All of the above.