Hi BecSter,
Thanks for making your situation clear. Since you’re both registered for GST, treat GST like a pass‑through and ignore it when working out the profit. Just take GST off the client amount and off both your expenses so you’re comparing like‑for‑like, figure out the profit (income minus both sets of costs), then split that 50/50.
To record it: because you’re billing the client, get your partner to invoice you for their half of the profit plus what they spent (all worked out without GST), then they add 10% GST to that invoice. You claim that GST back, they pay it on their side, and you both land on the same profit in the end.
Best,
Genreve
