You can try your luck fishing in most areas along the coast but always remember, rock fishing is the world's most dangerous sport.
The island has an exposed coast on the south and protected waters, to varying degrees, elsewhere.
Much safer is if you join any of the number of charter fishing expeditions that depart from Newhaven and San Remo, or you can hire boats from Rhyll and Corinella.
A large variety of fish can be caught in Western Port, such as Flathead, Snapper, Channel Whiting, King George Whiting (Sept - June), Gummy Shark (Oct-May), Pike (Nov - July), Australian Salmon (May - Feb), etc. Squid are also common from Nov - April and can usually be procured off all the jetties, located in the towns around the coast.
A license is required for amateur fishing at Western Port and there are regulations on minimum size fish, bait gathering and the techniques allowed for taking of various species.
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Cold but quality - surfing the island
Surfing is a popular thing on the island but, be warned, the water isn't always warm. My son surfed both Woolamai and Flynns Beach with the water at the latter being noticeably warmer. Waves were good quality at both venues with the Flynns break being deceptively strong. It may look fat from the shore but there's plenty of force in the waves.
Equipment: You may need a thick steamer, you have been warned.