The Ultimate Guide to Starting a Business in Australia

Young entrepreneur
ready to launch in Australia.

Starting a business is a big step—exciting, challenging, and full of opportunity. In Australia, there are specific rules, systems, and processes that every new entrepreneur needs to follow. Whether you’re a student, a side hustler, a future CEO, or just exploring a passion project, this guide is made to give you everything you need to start strong.

We’ve taken the official checklist from business.gov.au and expanded it into a full, plain-English guide. We explain every term, offer examples, and give you extra tips so you’re never left wondering what something means or what to do next.

1. Before You Start

Get the Skills You Need

Running a business means wearing many hats. You’ll need to understand:

Finance (like budgeting and taxes)
Marketing (like how to reach and keep customers)
Customer service
Time management

💡 Tip: You don’t need to be an expert in everything—just start learning the basics and ask for help when needed. Free courses and support are available online and through local business hubs.

Research Your Business Idea

Make sure your idea solves a real problem or offers something people want. Ask:

Who are your customers?
What will they pay?
Who else is offering something similar?

Understand Lifestyle Changes

Running a business may affect your:

Time (you’ll likely work more hours)
Income (it might be unstable at first)
Stress levels (you’re responsible for everything)

Find Support

Check out:

business.gov.au
Local councils or chambers of commerce
Small business mentors and online communities

2. Hobby or Business? Know the Difference

A hobby is something you do for fun. You might sell your creations occasionally, but you’re not trying to make a profit consistently. You don’t need an ABN, register for tax, or follow business laws.

A business is when you:

Intend to make a profit
Regularly advertise or sell
Keep records
Have a structure (like a sole trader or company)

💡 Example: If you bake cakes once a month for friends, it’s a hobby. If you sell cakes every weekend through Instagram and take orders, that’s a business.

3. Contractor or Employee? Know Where You Stand

A contractor runs their own business and provides services to others. An employee works for a business and is paid wages with specific rights.

Key differences:

Contractors invoice for work; employees get paid wages.
Contractors provide their own tools; employees are provided with them.
Contractors control how and when work is done.

🚫 Sham contracting is illegal. That’s when someone is treated like a contractor but really works like an employee.

4. Visas and Age Restrictions

If you’re not a citizen or permanent resident:
You need a visa that allows you to run or start a business. Examples include:

Business Innovation and Investment Visa
Temporary Skill Shortage Visa (if self-employment is approved)

If you’re under 18:

You may face limits on work hours depending on your state.
If you hire others under 18, make sure they pass a Working with Children Check (or your state’s equivalent).

5. Define Your Business

Business Structures Explained

Sole Trader – You run everything yourself. Easiest to start, but you’re personally responsible for any debts.
Partnership – You run it with others. Profits and responsibilities are shared.
Company – A separate legal entity. Offers limited liability, but has more paperwork and rules.
Trust – A legal setup to manage assets. Often used for tax or legal protection.

💡 If you’re not sure, talk to an accountant or business advisor.

Choosing a Name

Your name is your brand. Make sure it’s:

Unique
Easy to remember and spell
Available as a domain name and social media handle

Search for name availability at ASIC Connect.

Choosing a Location

Decide if you’ll work from home, rent an office, or buy a shop.
Get legal advice before signing any lease.
If working from home, check zoning laws, tax rules, and insurance needs.

6. Plan Your Business

Market Research

What do your customers want?
Who else offers it? (Competitors)
How is your business better or different?

Business Plan

A business plan helps you:

Stay focused
Set goals
Understand your finances

Include:

A description of your business
Marketing strategies
Budget and cash flow forecast
Risk management strategies

Risk Management

Think about:

Financial risks (what if sales drop?)
Legal risks (what if you’re sued?)
Safety risks (what if someone gets injured?)

Create a plan to prevent, handle, and recover from these issues.

7. Register Your Business

ABN – Australian Business Number

A unique 11-digit number
Needed to invoice, register for tax, and identify your business
Apply at abr.gov.au

Business Name

Trade Marks

Protect your logo, slogan, or business name from being copied
Search for existing trade marks at IP Australia

Company Registration

If you form a company:

Get a Director ID at ABRS
Register your company at ASIC

Taxes

You might need to register for:

GST (if earning over $75,000)
PAYG (if you have employees)
Fringe Benefits Tax, Fuel Tax Credits, or others depending on your industry

Licences & Permits

Use the Australian Business Licence and Information Service (ABLIS) to find out what your business needs.

Domain Name

GoDaddy
VentraIP
Crazy Domains

8. Organise Your Finances

Start-Up Costs

Work out:

Equipment
Rent
Insurance
Staff
Marketing
Running costs for the first 6 months

Check with an accountant to confirm your estimates.

Get Funding

Options include:

Bank loans
Government grants
Investor funding
Crowdfunding

Set Up Your Financial System

Open a business bank account
Choose payment methods (card, PayPal, Afterpay, etc.)
Set up bookkeeping with software (like Xero or MYOB)
Learn how to store and manage receipts and records

Cash Flow Forecast

Estimate your monthly income and expenses
Spot gaps before they happen

Tax Basics

Know your tax obligations
Track business expenses to claim deductions
Set aside money regularly so you don’t fall behind

9. Get Customers

Marketing Plan

Who is your ideal customer?
Where do they hang out (online or offline)?
How will you reach them (ads, word of mouth, content, social media)?

Build a Website

Pick a web host (like Squarespace, Shopify, or WordPress)
Make sure it looks professional and is mobile-friendly
Secure it with an SSL certificate
Test everything before launch

Social Media Setup

Choose platforms that match your audience (Instagram, Facebook, TikTok, LinkedIn)
Plan your content in advance
Use tools like Buffer or Hootsuite to schedule posts

Advertising

Options include Google Ads, social media ads, flyers, sponsorships
Tailor your message to your audience
Follow advertising laws (no false claims, must include terms and conditions)

10. Hire Staff

Hiring Employees

Understand your responsibilities for:

Pay and superannuation
Leave and entitlements
Fair contracts and safe work conditions

Hiring Contractors

Make sure they really are contractors (check ATO definitions)
Get contracts signed

Apprentices and Trainees

You may be eligible for support programs
Must sign a formal learning agreement

11. Protect Your Business

Know the Law

Understand the laws relevant to your industry (e.g., food safety, privacy laws, etc.)
Get advice if unsure

Workplace Safety

Follow health and safety regulations
Get Workers Compensation Insurance
Create a safe environment with regular risk checks

Insurance Options

Public Liability
Product Liability
Professional Indemnity
Property and Equipment

Intellectual Property (IP)

Includes your logo, designs, inventions, written content
Register it at IP Australia

Cyber Security

Use strong passwords and update software
Backup your data
Have a plan in case of hacking or scams

Emergency Planning

Keep copies of important records
Create a plan for natural disasters, power cuts, or other emergencies
Practice your emergency procedures

Conclusion:

Starting a business in Australia takes time, research, and planning—but it’s totally doable. With the right steps and a clear roadmap, you can build something real, something big. Keep learning, ask for help, and remember: Inspanet is here to inspire and guide you every step of the way.