The Answer
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ABN, GST, business name, insurance, and state-specific registrations for starting a business in New South Wales.
Step-by-Step Checklist
- Choose your business structure — sole trader (simplest), partnership, company (Pty Ltd), or trust. Most small businesses start as sole traders.
- Register your ABN — free at abr.gov.au. Takes 5 minutes. You need this before you can invoice.
- Register your business name — $39 for 1 year, $92 for 3 years at asic.gov.au (unless trading under your personal name)
- Register for GST — required if your turnover exceeds $75,000/year. Optional below that. Register through the ATO.
- Open a business bank account — keep business and personal finances separate from day one
- Get insurance — public liability ($300–$800/year) and professional indemnity if you provide advice/services
- 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
Frequently Asked Questions
Do I need an ABN?
If you're running a business, yes. It's free and takes 5 minutes to register at abr.gov.au.
When do I need to register for GST?
When your turnover reaches $75,000/year (or $150,000 for non-profits). Below that, registration is optional but can be beneficial for claiming GST credits.
Do sole traders pay a different tax rate?
No. Sole traders pay individual income tax rates on their business profit. There's no separate small business tax rate for sole traders.
What Changed
Apr 2026
Verified for New South Wales