How to start a business in Australia: complete guide (2026)
Complete step-by-step guide to starting a business in Australia—from choosing a structure and getting your ABN to state-specific licences, permits, and local council approvals.
Written by
Georgia Morgan
General information only – not legal advice
This guide provides general information about starting a business in Australia. Business registration and licensing requirements can change and vary by state. Always verify current requirements with official sources including the Australian Business Register (ABR), ASIC, your state small business office, and your local council. Seek professional advice from an accountant or business advisor for your specific situation. It does not constitute legal, HR, or professional advice and should not be relied on as a substitute for advice specific to your business, workforce, or circumstances.
Choose a business idea with real demand
Before you register anything, validate your idea has real demand and a clear competitive advantage (better offer, better location, faster service, niche audience, etc.).
Business idea validation checklist
| Question | What to consider |
|---|---|
| Who is it for? | Target demographic, location, income level, pain points |
| Where will customers come from? | Google search, referrals, social media, marketplaces, partnerships |
| What problem are you solving? | Identify the specific pain point your business addresses |
| What will people pay? | Test pricing early—research competitors and survey potential customers |
| Who are your top 5 competitors? | What do they do well/poorly? How will you differentiate? |
| What is your minimum viable offer? | A "version 1" product/service you can sell this month |
Use state small business support early
Every Australian state offers free small business advice, templates, and workshops. Check your state's small business office in the resources section below for local support near you.
Pick the right business structure (sole trader vs company)
Your structure affects tax, liability, admin, and how "serious" you look to clients and lenders. The ABR also expects you to decide your structure before applying for an ABN.
Common structures in Australia
Sole trader
Simplest and cheapest to start; you personally hold liability.
Pros:
- Easy and low-cost setup
- Complete control
- Simple tax reporting
Cons:
- Unlimited personal liability
- Harder to raise capital
- No separation between personal and business assets
Best for:
Freelancers, contractors, low-risk businesses
Company (Pty Ltd)
Separate legal entity; can provide limited liability; more admin and costs.
Pros:
- Limited liability protection
- Easier to raise capital
- More professional image
Cons:
- Higher setup and ongoing costs
- More complex reporting (ASIC)
- Directors have legal obligations
Best for:
Businesses with higher risk, staff, or growth plans
Partnership
Shared ownership/decision-making; each partner's responsibilities need clarity.
Pros:
- Shared resources and expertise
- Shared financial burden
- Simple structure
Cons:
- Shared liability (including partner actions)
- Potential for disputes
- Profits must be shared
Best for:
Two or more people starting a business together
Trust
Often used for specific tax/asset/profit distribution reasons; get advice first.
Pros:
- Tax advantages
- Asset protection
- Flexible profit distribution
Cons:
- Complex setup and management
- Requires professional advice
- Ongoing compliance costs
Best for:
Investment properties, family businesses with complex tax needs
Practical rule of thumb
- If you're freelancing/contracting and risk is low → sole trader is often the simplest start.
- If you have higher risk (staff, contracts, physical premises, bigger liabilities) → consider company earlier.
This is general information, not legal/tax advice—an accountant or small business advisor can help you choose the best fit for your situation.
Write a "one-page" business plan + budget
A plan doesn't need to be a 40-page document. For real-world clarity, a one-page plan is often enough to start:
Your one-page plan (fill this in)
Offer:
What you sell + who you sell it to
Positioning:
Why customers choose you (in Perth)
Pricing:
Your pricing model and target margin
Marketing channels:
Top 2–3 ways you'll get customers
Costs:
Fixed + variable + one-off startup costs
Break-even:
How many sales per week/month to cover costs
Launch timeline:
What happens in the next 30 days
Why this matters for your ABN
The ABR can review whether you're genuinely "carrying on or starting an enterprise," and evidence like planning, ads, quotes, or setup steps can help. A one-page plan demonstrates business intent.
Estimate your costs with free calculators
Use these free tools to forecast your startup and ongoing labour costs:
Payroll cost calculator
Calculate total employee costs including super and on-costs
Casual vs part-time calculator
Compare employment types to find the most cost-effective structure
Labour cost percentage calculator
Calculate your revenue vs payroll ratio for healthy margins
Roster cost forecast calculator
Forecast labour costs based on your planned roster
Choose a business name + lock in domain and socials
A business name is the name you trade under. If you trade under a name that isn't your own legal name, you generally need to register that business name.
Check availability properly
Before you commit:
- Search the ASIC business names register to see if the name is available
- Also check trade marks (if you want brand protection)
- Grab the matching domain name (especially if you want a .com.au)
- Lock in social handles (even if you don't use them right away)
Quick checklist
How to get an ABN (free): step-by-step
This section targets the search term how to get an ABN.
What is an ABN?
An ABN is an 11-digit number that identifies your business/organisation to government and the community. It's essential for invoicing, tax, and most business transactions.
Is getting an ABN free?
Yes—applying for an ABN is free through official government services. If a website tries to charge you, you're looking at a paid third-party service.
Who is entitled to an ABN?
You're entitled if you're carrying on or starting an enterprise in Australia. The ABR looks for profit intention, repeated/systematic activity, and business-like operations.
Step-by-step: How to apply for an ABN
Check eligibility
You're entitled to an ABN if you're carrying on or starting an enterprise in Australia. The ABR looks for profit intention, repeated/systematic activity, and business-like operations.
Gather required information
Have your TFN ready, your entity legal name, business start date, contact details, locations, and main business activity. If registering a company, you'll need ACN/ARBN details.
Apply through official channels
Apply via the Australian Business Register (ABR) ABN application or the Business Registration Service. Both are free—never pay a third party to "get an ABN."
Receive your ABN
If successful, you can receive your ABN immediately. If extra checks are needed, the ABR aims to review within 20 business days.
What you need before you apply
Depending on your situation, you may need:
- Your TFN (and TFNs of associates like partners/directors)
- Your entity legal name
- Start date for when you need the ABN (can't be too far in the future)
- Business contact details and locations
- Your main business activity
- ACN/ARBN details if relevant (for companies)
Where to apply (official options)
You can apply via:
Australian Business Register (ABR)
ABN application pathway
Apply nowBusiness Registration Service
Apply for ABN, business name, and tax registrations in one place
Apply nowHow long does it take to get an ABN?
If successful, you can receive your ABN immediately.
If extra checks are needed, you may receive a reference number and the ABR indicates reviews are aimed within 20 business days.
Important warning (don't skip)
- The ABR warns you may face serious consequences if you apply for an ABN/GST and claim GST refunds when not entitled.
- If a website tries to charge you to "get an ABN," you're usually looking at a paid third-party service—ABN applications themselves are free through official channels.
Register your business name (ASIC) and/or company (ACN)
Registering a business name
If you want to trade under a business name:
- You generally need your ABN first and you apply through ASIC
- Business name registration costs are listed as $45 for 1 year or $104 for 3 years
- Confirmation can be quick once you've provided the right info and paid (timeframes vary by payment method)
What a business name registration includes
- Exclusive rights to use that business name in Australia
- ASIC listing and searchable database entry
- Legal ability to invoice and trade under that name
- Renewal reminders from ASIC before expiry
Registering a company (ACN)
If you choose a company structure, ASIC issues an ACN (Australian Company Number).
The Business Registration Service notes that company registration fees depend on company type.
An example given is $611 to register a proprietary limited company. This includes ASIC registration and director obligations.
Tax setup: GST, PAYG withholding, and more
This is where many "how to start a business in Australia" guides get confusing—so here's the clean version.
ABN vs GST (they're not the same)
ABN
- Identifies your business
- Free to apply
- Needed for many things (including GST registration)
GST
- A tax registration
- Required when certain thresholds/conditions apply
- Must have ABN before registering for GST
Do you need to register for GST?
Business.gov.au and the ABR list common scenarios where GST registration is required, including when:
- Your turnover hits $75,000+ (in a 12‑month period)
- You provide taxi/limousine travel (including ride-sourcing) regardless of turnover
GST timing: don't leave it too late
The ABR states that once you're required to register for GST, you need an ABN first and must register within 21 days. Late registration can result in penalties.
PAYG withholding (if you hire staff, etc.)
Business.gov.au explains PAYG withholding applies when you pay:
- Employees (most common)
- Directors receiving payments
- Some contractors via agreements
- Businesses that don't quote their ABN
State licences, permits, and council approvals
Licencing requirements vary by state and industry. Select your state below for specific guidance:
Start here: ABLIS (All states)
The Australian Business Licence and Information Service (ABLIS) is the official government tool to find licences and permits for your business, including council approvals and compliance requirements—regardless of which state you're in.
Search ABLISState-specific licence finders
NSW Licence Finder
Service NSW Business Licences
Official NSW government licence and permit finder
NSW Workers Compensation
icare NSW
Mandatory if you employ people in NSW
Key points for NSW businesses
- Use Service NSW for most business licences and registrations
- Food businesses need council approval and NSW Food Authority registration
- Home-based businesses may need council approval depending on activity
- Workers compensation mandatory if you employ people
Common licence categories (all states)
Food businesses
Council approval, food safety registration, health inspections
Home-based businesses
May need council approval depending on activity and customer visits
Liquor licensing
State-issued licence required to sell or serve alcohol
Building & trades
Electrical, plumbing, building licences from state authority
Childcare & education
State approval, Working with Children Check, ratios
Security services
State security licence for guards and operators
Set up banking, accounting, and record keeping
Even if you're a sole trader, treating your business like a business helps with:
- Accurate tax reporting
- Cash flow clarity
- Credibility with lenders and suppliers
Minimum setup (recommended)
Dedicated business bank account
Or at least a separate account you use only for business transactions
Simple bookkeeping process
Weekly is better than quarterly—stay on top of cash flow and GST
Chart of accounts and expense categories
Make tax time easier by categorizing expenses correctly from day one
System for storing receipts and invoices
Use cloud accounting software or a simple filing system—just keep records
Business.gov.au highlights that ABNs help make running your business easier, especially when you need other tax registrations like GST. Having proper payroll service and HRIS systems in place early sets you up for growth.
When you hire your first employee
You'll need to manage employee onboarding, contracts, rostering, time tracking, and payroll. Use HR software to keep everything in one place. Read our onboarding guide for step-by-step help.
Insurance you should consider for your Australian business
Insurance needs vary by industry, but new Australian businesses commonly consider:
Public liability
Covers injury or property damage to third parties
Best for:
Businesses with physical premises or client visits
Professional indemnity
Protects against claims of negligence or inadequate service
Best for:
Consultants, advisors, service providers
Product liability
Covers injury or damage caused by products you sell
Best for:
Retailers, manufacturers, distributors
Workers compensation
Required if you employ people—rules vary by state
Best for:
All employers (mandatory)
Cyber insurance
Protects against data breaches and online threats
Best for:
Online businesses or those holding customer data
Workers compensation in WA
If you employ people in Western Australia, you must have workers compensation insurance. Contact WorkCover WA for requirements and approved insurers.
Launch checklist: website, local marketing, and networking
Your 7-day pre-launch checklist
Perth-specific launch ideas
The City of Perth highlights short-term lease and pop-up style opportunities (helpful if you want to test the market before committing to a long lease).
Contact the City of Perth business team for available options or check local business networks and councils for similar opportunities in your area.
Australian & state resources and support
Australia-wide resources
Start with these official Australian government resources:
Australian Business Register (ABR)
ABN entitlement guidance and free application
Australian Government Business Registration Service
Apply for ABN, business name, and tax registrations in one place
Australian Business Licence and Information Service (ABLIS)
Find licences, permits, and council approvals for your business
Australian Small Business and Family Enterprise Ombudsman
Free support, advocacy, and dispute resolution for small businesses
State & territory business offices
Your state government offers local support, advice, and grant programs:
NSW
Service NSW — Business
NSW business registration, licences, and grants
Visit websiteVIC
Business Victoria
Victorian government business support, advice, and grants
Visit websiteQLD
Business Queensland
QLD business advice, licences, and support programs
Visit websiteWA
Small Business Development Corporation (SBDC)
WA business advice, templates, workshops, and licence finder
Visit websiteSA
Business SA
South Australian business support and advocacy
Visit websiteTAS
Business Tasmania
Tasmanian government business support and grants
Visit websiteACT
Access Canberra — Business
ACT business registration, licences, and support
Visit websiteNT
Northern Territory Business
NT business advice, grants, and support services
Visit websiteStarting a business in Australia: frequently asked questions
- It's free. Applying for an ABN through official Australian Government services is free. If a website tries to charge you, you're looking at a paid third-party service—ABN applications themselves are free through the ABR or Business Registration Service.
- The $75,000 threshold is about GST registration, not whether you can or should have an ABN. Many businesses get an ABN even under $75k. Also, if you don't have an ABN, other businesses may have to withhold 47% from payments to you. Learn more on business.gov.au.
- The ABR states you're entitled to an ABN if you're carrying on or starting an enterprise in Australia. Indicators of a real business include profit intention, repetition, business-like systems, records, and evidence like a website, quotes, buying equipment, licences, or insurance.
- Apply through official government channels: the ABR ABN application or the Business Registration Service. Both indicate ABN registration is free.
- If your application is successful, the ABR says you can get your ABN immediately. If the ABR needs to review details, they aim to review within 20 business days.
- Business.gov.au lists ASIC fees as $45 for 1 year or $104 for 3 years. You generally need your ABN first, then apply through ASIC.
Ready to hire your first employee?
Manage onboarding, contracts, rostering, time tracking, and payroll in one platform. Built for Australian small businesses.
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Turn approved timesheets into accurate payroll
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