Partnership Agreements in Australia: Key Clauses & Best Practices A well-drafted partnership agreement sets clear expectations and prevents disputes before they arise. Here are five critical elements to include in your Australian partnership agreement. 1. Partnership Scope & Purpose Define the business activities, territory and term of the partnership. Be specific about the services or products you’ll offer and the markets you’ll serve. 2. Capital Contributions & Profit-Loss Sharing Specify each partner’s initial and ongoing financial contributions. Outline how profits (and losses) will be calculated and distributed—whether by fixed percentage, guaranteed return or a hybrid model. 3. Management & Decision-Making Clarify who makes day-to-day decisions versus major strategic moves. Establish voting thresholds (e.g., simple majority, unanimous) for key issues like taking on debt or admitting new partners. 4. Dispute Resolution & Dissolution Include a t...