According to section 5H of the VEA income is:

• an amount earned, derived or received by a person for the person's own use or benefit;
• a periodical payment by way of gift or allowance; or
• a periodical benefit by way of gift or allowance.

An asset means any property, including property outside Australia.

For the purposes of income and assets assessment, a sole trader is a business owned by one person.



The business:

• is not a separate legal entity from the owner,
• is not a separate accounting entity, which means that sole traders need ONLY lodge a personal tax return,
• may be run in the owner's name OR under a registered business name, and
• may or may not have employees.

The owner is:

• liable for all the debts of the business, and
• entitled to all the profits of the business.

For the purposes of income and assets assessment, a partnership is the relationship which exists between people carrying on business in common, with a view to making a profit. A partnership agreement may be oral OR written. The business may be run:

•       in the owners' name(s), or
•       under a registered business name.

The business is not a separate legal entity, which means that although the partnership lodges a tax return, the profit or income is assessable in the hands of the individual partners.

Each partner:

•       owns an agreed portion of the business assets,
•       receives an agreed portion of the profits, and
•       is 'jointly and severally' liable for all business debts.