Duties Act 2001

A person acquires a partnership interest if a partnership is formed or the person’s partnership interest increases.

Without limiting subsection (1)—

a partnership may be formed on—

a change in the membership of a partnership; or

the merger of 2 or more partnerships; or

a person’s partnership interest may increase—

under the terms of a partnership agreement; or

on the retirement of a partner from a partnership; or

on a change in the terms of a partnership agreement effecting a change in the interests of the partners.

However, a partner’s variable partnership entitlement under section 42 does not increase if—

the partner’s entitlement to share in the profits or obligation to contribute to the capital or losses of the partnership increases merely because of the partner’s performance as a partner; and

there is no arrangement stating—

the extent of the future variation to the partner’s entitlement or obligation; or

the consideration for the variation.