Income tax: can income from the sale of abalone taken by a person who is licensed to take and sell the abalone under the Fisheries Act 1968 (Vic) be assessable income of a partnership, company, trust, or another individual?

Yes.

An abalone licence entitles the holder to take abalone for sale. Under subsection 13(1) of the Fisheries Act 1968 only a natural person is allowed to be the holder of an abalone licence, however, the licence holder may not be the owner of that licence.

The owner(s) of the licence can be the licence holder, another individual, a partnership, a trustee, or company.

The assessability of income from the sale of abalone taken by a licensed abalone diver will depend on the ownership of the abalone licence, and any income sharing agreement between the licence holder and the licence owner(s). Example John Shucking is a Victorian licensed abalone diver. The owner of his licence is John Shucking (Abalone) Pty. Ltd. and John is an employee of this company. Income from the sale of abalone taken by John is included in the income tax returns lodged for John Shucking (Abalone) Pty. Ltd., and John is paid a salary as an employee of this company.