Starting a Business in Australia — Step by Step

Choose Your State

Step-by-Step Checklist

1. Choose your business structure — sole trader (simplest), partnership, company (Pty Ltd), or trust. Most small businesses start as sole traders.
2. Register your ABN — free at abr.gov.au. Takes 5 minutes. You need this before you can invoice.
3. Register your business name — $39 for 1 year, $92 for 3 years at asic.gov.au (unless trading under your personal name)
4. Register for GST — required if your turnover exceeds $75,000/year. Optional below that. Register through the ATO.
5. Open a business bank account — keep business and personal finances separate from day one
6. Get insurance — public liability ($300–$800/year) and professional indemnity if you provide advice/services
7. Set up accounting — use Xero, MYOB, or QuickBooks. Track every expense from day one.

Tax as a Business Owner

As a sole trader, your business income is your personal income — same tax brackets as employees. You pay quarterly PAYG instalments once the ATO issues a notice. GST is reported quarterly via Business Activity Statements (BAS).

State Requirements — NSW

• Check if your industry requires a state licence (e.g., builders, electricians, food businesses, real estate agents)
• Council permits may be needed for home-based businesses, signage, or food preparation
• Workers compensation insurance is compulsory in NSW if you hire employees