Joint ventures are contractual agreements by people or corporations for a project that requires the pooling of resources for a single venture.

For example, two companies may form a joint venture to undertake a major project that neither can do on its own. An Australian company may form a joint venture with an overseas company to take on a project in that country. Similarly, two partnerships may join forces to manage a big contract. Joint venture is a separate venture for each venturer.

Joint ventures involve complex contractual arrangements that should be left to your lawyers, particularly if there is a lot at stake, to ensure that your interests are properly protected.

The operating method of the joint venture is basically whatever the partners in the venture decide for themselves. An agreement is usually drawn up - very much like a partnership agreement - to define arrangements for sharing costs and profits, as well as the roles and responsibilities of the parties involved.

To view a web page containing further information on joint ventures and GST implications of forming such a business structure go to the ATO website - www.ato.gov.au.