Starting a Business in Australia

Business structure comparison, ABN and GST registration, tax and accounting, insurance and licences, and a due diligence checklist for buying an existing business — a practical guide for newcomers to Australia.

1. Business structure

Your structure affects tax, liability, and registration costs. Choose carefully at the start.

Sole Trader

An individual business. Easiest and cheapest to register and run, but business debts can affect personal assets.

Partnership

A business of two or more partners. Requires a partnership agreement; partners share joint and several liability.

Company (Pty Ltd)

A separate legal entity registered with ASIC. Offers asset protection but adds fees and company tax obligations.

Trust

A trust structure. Used for family businesses or asset protection; setup and operation need professional advice.

Comparing the four structures

Item	Sole Trader	Partnership	Company (Pty Ltd)	Trust
Set-up cost	Free ABN application	Free ABN, plus the cost of a partnership agreement	ASIC company registration fee of $636 (FY2026-27)	Trust deed required — professional fees apply
Liability	Unlimited — business debts can reach personal assets	Joint and several unlimited liability between partners	Limited — the company is a separate legal entity	The trustee is liable — limited if a corporate trustee is used
Tax	Personal marginal rates (with the $18,200 tax-free threshold)	The partnership itself pays no income tax — each partner is taxed at personal rates on their share	25% (base rate entity: aggregated turnover under $50M and passive income 80% or less, FY2025-26) or 30%	Income distributed to beneficiaries is taxed at their rates
Ongoing costs	Business income goes in your personal tax return — no separate fee	Partnership return plus each partner's personal return	ASIC annual review fee of $342 (FY2026-27) plus a company tax return	Trust tax return plus accounting and admin costs

If you trade under a name other than your own legal name, you also need to register a business name — $47 for 1 year or $108 for 3 years (FY2026-27). ASIC fees are indexed to CPI every 1 July. Sources: ASIC fee schedules and ATO company tax rates (checked 2026-07)

Whether you can run a business depends on your visa. Confirm your visa conditions and consult a MARA-registered migration agent before starting.

2. Registration

Register ABN, Business Name, GST, and TFN in sequence. Most can be done free or cheaply through official government sites.

ABN (Australian Business Number)

An 11-digit business identifier. Apply free at abr.business.gov.au — you are only entitled to one if you are actually carrying on an enterprise. It is the starting point for most Australian business activity, and you cannot charge GST on invoices without one.

Business Name registration

If you trade under a name other than your own legal name, you must register a Business Name with ASIC — $47 for 1 year or $108 for 3 years (FY2026-27; ASIC fees are indexed to CPI every 1 July). The name is linked to your ABN. Source: ASIC business names fee schedule (checked 2026-07)

GST (Goods and Services Tax)

Registration is mandatory within 21 days once annual GST turnover reaches AUD 75,000 (150,000 for non-profits). Taxi and ride-share drivers must register before their first trip regardless of turnover. Once registered, you lodge a BAS quarterly or monthly. Source: ATO 'Registering for GST' (checked 2026-07)

Business TFN

Sole Traders use their personal TFN, but Partnerships, Companies, and Trusts each need a separate business TFN. You can apply when registering an ABN.

3. Tax and accounting

Bookkeeping

Accurate bookkeeping is the foundation of running a business. The following accounting software is most widely used in Australia.

Xero — cloud-based, market leader in Australia, with automated BAS generation.
MYOB — Australian-grown software available in desktop and cloud versions.
QuickBooks Online — strong global share with an intuitive interface.

BAS (Business Activity Statement)

GST registrants must lodge a quarterly or monthly BAS. It includes GST collected, GST paid, and PAYG withholding. Late lodgement attracts ATO penalties.

Employee superannuation obligation

If you employ staff, you must pay super guarantee at 12% of ordinary time earnings (from 1 July 2025, FY2025-26) into their nominated fund. Quarterly deadlines apply, and unpaid or late amounts attract the Super Guarantee Charge. Source: ATO (checked 2026-07)

PAYG (Pay As You Go)

Includes withholding from employee wages and your own quarterly instalments. Once registered with the ATO, lodgement schedules are assigned automatically.

4. Insurance and licences

Key business insurance

Public Liability — general liability insurance, recommended for almost any business.
Professional Indemnity — essential for consulting and professional services.
Workers Compensation — mandatory under state law from your first employee.
Property and Stock — covers fire and theft for retail premises and inventory.

Industry licences

Different industries need different licences. Food (Food Licence), construction (Builder Licence), beauty (Skin Penetration), and alcohol (Liquor Licence) all require state-level registration. Check requirements at business.gov.au.

Food business safety registration

Restaurants, cafes, and takeaways must register with the local council. At least one Food Safety Supervisor is required, and regular hygiene inspections apply.

5. Buying an existing business

Buying a business that is already trading means you start with customers, revenue, staff and equipment in place — but hidden debts, overpriced goodwill and lease disputes can come with it. For small businesses like cafes, restaurants, cleaning rounds and retail shops, due diligence is what separates a good buy from an expensive mistake. The checklist below is based on the official 'Buy an existing business' guide on business.gov.au (checked 2026-07).

Due diligence checklist

Verify the financials — cross-check the last 3 years of financial statements, BAS lodgements and sales records against each other, and have an accountant review them independently. In cash-heavy businesses, never take claims of 'off the books' income at face value.
ABN and GST status — use ABN Lookup (abr.business.gov.au, free) to confirm the seller's ABN is valid and check their GST registration.
Security interests — search the PPSR (ppsr.gov.au) for $2 per search to see whether equipment, vehicles or stock have security interests registered against them (checked 2026-07). Assets under finance can come with the seller's debt attached.
Licences and permits — confirm the licences the business needs are current and can be transferred to a new owner (search by industry and location on ABLIS).
Contracts — review the lease, supplier agreements and any franchise agreement for transfer conditions and remaining terms.
Debts and disputes — check for outstanding debts, ongoing legal action and employee entitlement liabilities such as accrued annual leave.
Revenue concentration — if sales depend on a few key customers or on the seller's personal relationships and skills, expect attrition after the handover.

Source: business.gov.au 'Buy an existing business' (checked 2026-07)

What to check in the contract

What you are buying — be clear whether it is an asset sale or a share sale. Buying the company's shares means inheriting its hidden liabilities and tax history as well.
Price allocation — how the price is split between goodwill, stock and equipment affects state stamp duty and your future tax position (depreciation and capital gains tax).
Restraint of trade — spell out the period and area in which the seller cannot open a competing business nearby.
Handover terms — include a trial period, training and support from the seller, and introductions to key suppliers and customers.
GST treatment — a sale that qualifies as a going concern and is agreed in writing is GST-free (ATO GSTR 2002/5, checked 2026-07). Check the GST clause carefully and have a lawyer and accountant review the contract before you sign.

Assignment of lease

The shop lease is where business purchases most often go wrong. Taking over an existing lease requires the landlord's written consent.

Retail leases in NSW are covered by the Retail Leases Act 1994 — the landlord must respond to an assignment request within 28 days of receiving all required information (checked 2026-07; other states and territories have their own legislation).
The landlord cannot charge a fee just for giving consent — only reasonable legal expenses — and demanding key-money is prohibited.
In NSW, if the outgoing tenant provides an Assignor's Disclosure Statement to the landlord and the incoming tenant at least 7 days before the assignment, they are released from future liability under the lease (Retail Leases Act 1994 s41A) — both sides should insist on this document.
The remaining lease term and renewal options directly affect what the business is worth. If little time is left, talk to the landlord about new terms before you buy.

Source: NSW Small Business Commissioner 'Transferring your lease' (checked 2026-07)

Staff and entitlements (transfer of business)

If you keep the existing staff on, the 'transfer of business' rules in Part 2-8 of the Fair Work Act 2009 apply, and service and entitlements become a negotiation point.

A buyer that is not an associated entity of the seller can choose whether to recognise employees' service for annual leave. If service is not recognised, the seller must pay out untaken accrued leave.
The same choice applies to service for redundancy pay — if not recognised, prior service is excluded from future redundancy calculations.
Long service leave is governed separately by state and territory laws, so check the rules in your state.
Make sure the sale contract states who settles employee entitlements — the seller paying them out, or the buyer taking them over with a price adjustment.

Source: Fair Work Ombudsman 'Employee entitlements on a transfer of business' (checked 2026-07)

You can browse actual listings and read other owners' handover experiences on the AUWith community's Business for Sale board. View the Business for Sale board

6. Useful links

Related guides

Advanced Business Guide — Registration, GST/BAS, Employment, Tax, Licences and Visas in Practice

Registering your business is only the start date; the real work begins after that. This guide covers the points migrants most often get stuck on: Director ID and choosing a structure, how GST/BAS reporting works, the new Payday Super rules for employees from July 2026, tax deductions, industry-specific licences, and whether your visa lets you run a business. Tax rates, fees and deadlines change every year, and procedures vary by state and by visa, so always confirm the final details with official bodies such as the ABR, ATO, ASIC, Fair Work and your state government.

Registration and Structure in Depth — Director ID, ABN Entitlement, Restructuring

Getting a Director ID is mandatory (Director Identification Number)

To become a director of a company (Pty Ltd), you must obtain a free Director ID before you are appointed. You apply through the Australian Business Registry Services (ABRS) using the myID app, receive a 15-digit lifetime number, and it usually takes about 15 minutes. Anyone who becomes a director for the first time on or after 5 April 2022 must have it before appointment, and failing to obtain one breaches the Corporations Act, exposing you to a civil penalty of up to 5,000 penalty units (roughly 1.65 million dollars at the current penalty unit value) as well as criminal sanctions. Directors living outside Australia have to follow a separate paper application process instead of the app, so allow plenty of time.

An ABN is not automatic — entitlement and cancellation

An ABN is not a number you simply receive by filing an application; you are only entitled to one if you are actually carrying on an enterprise, and a hobby or a one-off activity does not qualify. The ATO will cancel dormant ABNs on its own initiative where there is no ongoing turnover, BAS or income reporting, so you may need to reactivate one when you resume after a break. Gig work such as Uber or delivery also requires an ABN once you provide labour and receive payment for it. If you close your business, don't leave an ABN you're no longer entitled to sitting idle — lodge a cancellation with the ABR.

The difference between an ACN and an ABN

When you set up a company you first receive a 9-digit ACN (Australian Company Number) from ASIC, and then an 11-digit ABN made up of that ACN plus a two-digit checksum. A Sole Trader and a Partnership use only an ABN, with no ACN. A company is required to show its ACN (or ABN) on invoices and official documents, whereas the obligation is different for a sole trader, so the number you need to include on your paperwork depends on your business type. You can check whether a party is a legitimate business through the ABN Lookup at abr.business.gov.au.

Choose a structure based on tax and asset protection

A Sole Trader's business income is taxed at your personal marginal rate (up to 47% including Medicare), whereas a company (a base rate entity) is taxed at a flat 25%. But if you pull company profit out as dividends to spend personally, it's taxed again, and if you borrow company money for private use you run into the Div 7A loan rules, so you shouldn't decide on the 25% figure alone. A Trust can spread the tax burden by distributing income to beneficiaries and is often used for family businesses, but it is complex and costly to set up and run. Decide based on your expected profit scale, personal asset protection and succession plans — not on which is simplest — and talk to an accountant.

When and at what cost to convert from Sole Trader to Pty Ltd (restructuring)

The company registration fee for a standard proprietary company is 636 dollars (2026-27) per ASIC, followed by a 342-dollar annual review fee every year afterwards. When you convert, you have to open a new ABN, TFN and bank account in the company's name and re-issue licences and insurance as well. Using the small business restructure CGT rollover relief, you can defer capital gains tax when transferring assets, but only if you meet the requirements. Typically the signal to convert is when profits have grown enough that the tax rate saving outweighs the cost of converting and maintaining the company, or when you need to hire staff and separate liability.

Set up your myID and RAM digital identity first (myID and Relationship Authorisation Manager)

Lodging BAS and STP, accessing ATO Online services for business, and obtaining a Director ID are all impossible without the myID (formerly myGovID) app and RAM (Relationship Authorisation Manager). This is the first gate that trips up newer migrants who don't yet have strong Australian ID or digital identity, so before you register a business, verify your myID up to the Strong level using your passport or similar. You have to link your own ABN in RAM before the online services open up, and you also use RAM to delegate authority to your accountant or BAS agent. If you leave this step to later, you can end up registered but unable to lodge.

GST and BAS Reporting in Depth — Method, Cycle, Credits

Choosing cash vs accruals accounting

You choose between the cash and accruals methods for GST accounting, and you can use the cash method if your annual GST turnover is under 10 million dollars. The cash method recognises GST when money actually changes hands, which helps the cash flow of an early-stage business with a lot of receivables, while accruals recognises it at the point you issue or receive an invoice. You set the method when you register, and there are defined rules and timing limits on changing it afterwards. Which one suits you depends on your payment collection cycle, so decide early.

BAS lodgment cycles — quarterly, monthly, annual

Most small businesses lodge quarterly, with due dates of 28 October, 28 February, 28 April and 28 July (GST turnover under 20 million dollars). If your turnover is 20 million dollars or more, monthly lodgment is mandatory, and a business below the threshold that has registered for GST voluntarily can choose to lodge once a year. If you lodge online or through a registered BAS agent, some quarters get a few extra weeks. Missing a deadline attracts failure-to-lodge penalties and interest, so put the dates in your calendar in advance.

Distinguishing GST-free, input-taxed and taxable supplies

Basic food, most health and education, and exports are GST-free, meaning you don't add GST but can still claim the related input tax credits. Residential rent and financial supplies are input-taxed, so you don't add GST and cannot claim input tax credits either. Most other goods and services are taxable supplies at 10%. Getting this classification wrong throws off your whole BAS and can lead to a tax debt or a denied refund, so confirm which category your industry's supplies fall into early on, using ATO material or an accountant.

Conditions and pitfalls of input tax credits (GST credits)

To claim GST credits on a purchase, you must keep a valid tax invoice for spending of 82.50 dollars (GST inclusive) or more, and private-use portions, GST-free purchases and entertainment expenses are not claimable. For spending that is used for both business and private purposes (phone, vehicle, etc.), you must apportion and claim only the business-use share. If a supplier does not put their ABN on the invoice, that purchase can be blocked from being claimed. Failing to keep receipts and tax invoices is the most common reason credits are denied, so store them all, even if only digitally.

Rideshare and taxi have a GST obligation regardless of turnover

Passenger transport (taxi travel) services such as Uber, DiDi and taxis have a GST registration and reporting obligation from the very first dollar, regardless of the 75,000-dollar annual turnover threshold. This is the rule migrants who casually start with gig work miss most often, and if you operate while unregistered you can have 1/11th of your fares clawed back as GST retrospectively. Food delivery is not covered by this special rule and follows the usual 75,000-dollar test, but if you also carry passengers, the transport portion must be registered from the first dollar. Check which category your activity falls into before you start.

Distinguishing PAYG withholding from PAYG instalments

PAYG withholding is the system where you withhold tax from employee wages or from payments to a contractor who hasn't given you their ABN and remit it to the ATO on their behalf, while PAYG instalments is a separate system where you prepay income tax on your own business income in quarterly instalments. Both appear on the BAS (or IAS), but they are different in nature, so confusing them will throw off your cash planning. PAYG withholding registration must come before you pay your first employee or contractor, and you can register at the same time as applying for your ABN or add it later. Instalments are usually notified automatically by the ATO after your first income tax return.

Employer Obligations in Depth — the 2026 Payday Super Era

Payday Super takes effect (super on every payday from 1 July 2026)

With the relevant law passed in November 2025, from 1 July 2026 employers must pay super at the same time as they pay wages, instead of batching it up quarterly. The contribution must reach the employee's super fund account within 7 business days of payday, and being late incurs the super guarantee charge, including interest and an administrative uplift, plus penalties. It applies regardless of business size, the SG rate is 12%, and the calculation base has also broadened from the old OTE to qualifying earnings. The quarterly-deadline description in older guides no longer holds under this reform, so realign your payroll software and cash flow to a per-payday basis.

Single Touch Payroll (STP) Phase 2 obligation (real-time payroll reporting)

Every employer must report wages, PAYG withholding and super information to the ATO electronically (STP) each time they pay staff, and Phase 2 currently applies. You can use STP-enabled payroll software such as Xero, MYOB or QuickBooks, or if you are a micro employer with four or fewer employees you can use a low-cost or free STP solution. There is no need to issue separate paper payment summaries (group certificates) at year end — STP reporting replaces them, and employees view their income statement in myGov. The key is to set things up so that, in tandem with Payday Super, payroll, super and reporting all run together in one go.

Super stapling, choice form and SuperStream at hiring (the employer's view)

Give a new employee a Superannuation standard choice form and let them choose a fund, but if they don't nominate one, before defaulting them into the company's fund you must ask the ATO for that employee's stapled fund (their existing linked fund) and pay into that account. Putting them into the company default on your own initiative breaches the choice rules and is a penalty offence. Super is paid and reported electronically to the SuperStream standard, and you also collect a TFN declaration when hiring. You process the stapled fund request in ATO Online services for business using the employee's details.

Fair Work minimum wage, NES and Awards (the floor on pay and conditions)

The National Minimum Wage rises every 1 July, and from 1 July 2026 it is 26.44 dollars an hour (1,004.90 dollars a week), with casuals on at least 33.05 dollars an hour including a 25% loading. But an industry-specific Modern Award often sets a higher minimum wage and penalty rates (weekend and night loadings), so you need to check the award that applies to your industry. Complying with the National Employment Standards (NES) and giving new employees a Fair Work Information Statement are also mandatory. Paying below the award minimum counts as underpayment and exposes you to back-pay and penalties, and workplaces that employ migrants are a focus of targeted checks.

Workers compensation registration by state

When you hire your first employee you must take out state-based workers compensation within a set period, and the authority differs by state — NSW icare, VIC WorkSafe Victoria, QLD WorkCover Queensland, SA ReturnToWorkSA, WA WorkCover WA, and so on. Premiums are calculated from your total wages and your industry rate (risk level). If a workplace injury occurs while you are uninsured, the business owner can be personally liable for the compensation and penalties. A Sole Trader is not covered by this workers compensation for themselves, so you need to arrange separate income protection insurance.

Sham contracting and employee misclassification

Sham contracting — treating someone who is really an employee as an ABN contractor to dodge super, leave and workers compensation costs — breaches the Fair Work Act and is a penalty offence, and the ATO and Fair Work catch it through data matching. From August 2024, whether someone is an employee or a contractor is judged on the substance of the whole relationship rather than the wording of the contract. Migrants are most often misclassified in cleaning, delivery and construction subcontracting, and getting it wrong means unpaid super, leave and withholding are clawed back retrospectively. The assumption that someone is a contractor just because they have an ABN is dangerous, so check the tests in advance.

Tax Optimisation and Deductions in Depth

Instant asset write-off of 20,000 dollars

A business with annual turnover under 10 million dollars can buy an asset costing under 20,000 dollars each (on a GST-exclusive basis if registered for GST) and immediately write off the full amount as an expense in the financial year it is first used. This threshold applied from July 2025 to June 2026 (2025-26), and in the 2026-27 federal budget the government announced it would make this a permanent measure, but as at July 2026 it has not yet been legislated, so check whether it finally passes. The threshold is per asset, so you can write off several units separately, and both new and second-hand assets qualify. Note that passenger cars are subject to a separate car limit cap, so an expensive vehicle may not be deductible in full.

Home-based business deductions and the CGT pitfall

If you run a business from home, you can claim running costs such as electricity, internet and heating either at the fixed rate of 70 cents an hour (2025-26) or on an actual-cost basis (the rate is reviewed each year, so check the latest figure). If a specific part of your home becomes a place of business for tax purposes, you can even claim occupancy costs such as part of your rent, mortgage interest and council rates — but the pitfall is that your main residence capital gains tax (CGT) exemption is then partly broken by that proportion and period when you sell the home. A homeowner can end up paying tens of thousands of dollars in CGT on sale in exchange for a few hundred dollars of deductions, so calculate which method suits you in advance, and either way keep records of the area and hours used.

Methods for claiming vehicle expenses (motor vehicle deductions)

For a business vehicle you choose between the cents-per-km method and the logbook method. Cents-per-km is the simple option: at 91 cents per km for 2026-27 (88 cents in the preceding 2025-26 year), you can claim up to 5,000 km a year, for a maximum of about 4,550 dollars deductible without receipts. The logbook method has you keep a running log for a continuous 12 weeks to work out your business-use percentage, then applies that percentage to the full actual costs — fuel, insurance, depreciation and so on. If you drive a lot the logbook is better, but the record-keeping burden is heavy, and the ATO adjusts the cents-per-km rate each financial year, so check the latest figure.

Company tax at 25% vs personal marginal rates (base rate entity)

A base rate entity company (annual turnover under 50 million dollars with passive income no more than 80%) pays a flat 25% company tax, but to spend that profit personally you have to pull it out as dividends, which is then taxed again at the personal level (the company tax already paid is adjusted via franking credits). A Sole Trader has all their profit taxed at personal marginal rates (up to 47%), so a company is often only advantageous when you reinvest or retain the profit within it. If you draw all the profit out each year to live on, a company doesn't actually save tax and can instead just add accounting and compliance costs. The common belief that a company always saves tax is not true, so run the numbers for your own situation.

The PSI (personal services income) rules pitfall

If your income comes mainly from your own skills and labour — as in IT, consulting or a one-person trade — the personal services income (PSI) rules can apply. Unless you pass the results test (paid on results of 75% or more, using your own tools, and liable to fix defects) or otherwise meet the personal services business (PSB) requirements such as no single client accounting for 80% or more, the income ultimately attributes to you as an individual even if you run it through a company or trust, and deductions such as rent and income splitting with a spouse are restricted. In other words, setting up a company or trust does not let you escape the PSI rules. This is an area the ATO targets heavily with data matching, so work out whether your income is PSI before you start and keep the records to prove it.

Small business tax concessions

An unincorporated small business (Sole Trader, Partnership, etc.) with annual turnover under 5 million dollars automatically receives the small business income tax offset, which reduces the tax on your business income by 16% (up to 1,000 dollars a year). When you sell a business or an active asset, the small business CGT concessions (the 15-year exemption, the 50% active asset reduction, the retirement exemption and so on) can greatly reduce your capital gains tax. However, these CGT concessions have strict requirements such as net assets under 6 million dollars or turnover under 2 million dollars, so planning ahead matters. If a sale is on the horizon, review your structure with an accountant at least a year in advance.

Licences, Permits and Industry Regulation in Depth

Start with a combined search on ABLIS (Australian Business Licence and Information Service)

If you enter your business location and industry at ablis.business.gov.au, the licences, permits and registrations you need at the federal, state and local council levels are compiled for you in one place. Rather than guessing your industry's requirements or relying on hearsay, confirming them here is the starting point for avoiding gaps. Each item comes with an application link and an indication of the approximate fee and renewal cycle. Even within the same industry the permits you need vary by address (state and council), so search using the actual address where you will trade.

Food business permits in depth (food business registration)

Restaurants, cafes and takeaways must lodge a food business notification or registration with the relevant Local Council, keep at least one certified Food Safety Supervisor (FSS), and follow the Food Standards Code. In NSW there are obligations to display a Scores on Doors hygiene rating and to show allergen information on the menu. You have to pass the council's approval and hygiene inspection before opening, so build this timeline into your start-up plan. It is common for opening to be delayed because kitchen fit-out, drainage and ventilation standards aren't met, so it is safest to check the requirements before you sign a lease.

Building and trades licensing by state jurisdiction

Trades such as building, electrical, plumbing and gas require both a personal qualification licence and a business (contractor) licence, and the jurisdiction differs by state — NSW Fair Trading, Victoria's VBA (Victorian Building Authority), Queensland's QBCC, and so on. Unlicensed work leads not only to fines but to your defects insurance being excluded, leaving you with heavy liability if something goes wrong. Residential work above a certain value also requires consumer-protection warranty insurance (for example, NSW's Home Building Compensation). When you move to or expand into another state your licence may not be recognised automatically, so check the mutual recognition process.

Liquor, beauty and high-risk industry permits (liquor, skin penetration, etc.)

Selling alcohol needs a liquor licence from the state Liquor & Gaming authority, skin treatments such as tattooing, piercing and nails need a skin penetration registration with the council, and security work needs a security licence — each industry requires its own separate permit. Most are under state government or council jurisdiction, so even within the same industry the procedure, cost and conditions differ by state. A liquor licence often also requires worker certifications such as Responsible Service of Alcohol (RSA). Operating without a permit can lead to suspension and fines and even criminal prosecution, so make sure you obtain it before opening.

Confirming planning and zoning approval (planning, zoning and DA)

Before you sign a lease, you must first confirm whether the premises' council zoning and development approval (DA) allow the business you want. Uses such as a cafe, manufacturing, warehousing or a clinic have defined permitted uses, and a zone that doesn't fit won't be granted a permit to operate. Changing the use requires a change-of-use approval, which comes with time, cost and the risk of neighbour objections. Signing the lease first and then having the DA refused is the worst-case trap, where you're stuck paying rent for nothing, so either make the lease conditional on DA approval or finish your due diligence before you sign.

Working with Children and special worker screening (WWCC and worker screening)

A business that works with children, such as childcare, tutoring or sports coaching, must have every worker hold a Working with Children Check (WWCC), and NDIS-related work requires an NDIS Worker Screening Check, both run as state-based registration schemes. Some industries and roles also require a national police check. Hiring or opening without these checks makes you a target for criminal and administrative sanctions, and the business owner has a duty to verify and record that workers hold valid checks. Issuing can take several weeks, so advise applying well ahead of your hiring schedule.

Visas, Contracts and Trade Regulation in Depth

Business rights by visa in depth (business rights by visa)

For a student visa (subclass 500), ABN self-employment hours also count towards the 48-hours-per-fortnight work limit during the study period, while a graduate visa (485) carries full work rights and lets you run a business. By contrast, the 482 / Skills in Demand visa is tied to a nominated employer and occupation, so running your own business is generally not allowed, and a Working Holiday visa (417/462) does allow Sole Trader activity but is subject to the 6-month rule for a single employer. The Business Innovation and Investment Program (188/BIIP) closed to new applications in 2024. Breaching your visa conditions can lead to visa cancellation, so always confirm the work and business conditions of your own visa via VEVO and migration advice.

Requirements for a valid tax invoice (valid tax invoice and no-ABN withholding)

A tax invoice must show the seller's name and ABN, the date of issue, the items and quantities, and the GST amount (or the wording 'Total price includes GST'), and for transactions of 1,000 dollars or more it must also include the buyer's name and address or ABN. If a supplier does not put their ABN on the invoice, the payer must withhold 47% of the payment as no-ABN withholding and remit it to the ATO. An invoice that doesn't meet the format blocks the other party's input tax credit and damages the trading relationship. Using your accounting software's standard tax invoice template helps reduce omissions.

Australian Consumer Law (ACL) and unfair contract terms

Consumer guarantees (the rights to a refund, repair or replacement) cannot be excluded by wording such as 'No Refund' or 'No returns on sale items', and misleading or deceptive advertising (misleading conduct) is a target for ACCC enforcement. From November 2023, penalties can also apply to unfair contract terms in standard contracts with small businesses. Check that your refund policy, terms, price displays and review management comply with the ACL before you open. A breach brings penalties along with a hit to brand trust.

The process of entering a franchise (Franchising Code)

Under the new Franchising Code that took effect on 1 April 2025, a franchisor must provide a Disclosure Document and a Key Facts Sheet at least 14 days before the franchise agreement, and the agreement carries a guaranteed 14-day cooling-off period. You can cross-check a brand's disclosed information on the Franchise Disclosure Register (franchisedisclosure.gov.au). Don't sign on the spot at an information session — take the documents away, review them with a lawyer and accountant, and then decide. Beyond the initial franchise fee, you need to weigh the total cost including royalties, marketing levies and renewal conditions.

Retail and commercial leases

Retail leases are governed by each state's Retail Leases Act, which regulates the landlord's provision of a disclosure statement, the way rent is increased (limits on ratchet clauses), a minimum lease term and more. The size of the bank guarantee and security deposit, the make-good (reinstatement) clause, and the assignment conditions for when you sell the business all shape your total cost and exit strategy. Beyond the rent, be sure to confirm the outgoings (your share of management fees and council rates) and the rent increase rate. Retail rent is usually a business's largest fixed cost, so a lawyer's review before signing greatly reduces your risk.

Getting paid and card surcharging regulation

State your payment terms on the invoice, and note that at present a card surcharge cannot exceed your actual cost of acceptance (an RBA and ACCC rule). Moreover, from 1 October 2026 surcharging on eftpos, Mastercard and Visa debit and credit card payments is set to be banned outright, so tidy up your payment notices and price displays in advance. For unpaid amounts, send a letter of demand and then recover through your state's small claims tribunal, and if you trade with a large business you get the protection of the Payment Times Reporting scheme. Always put your payment terms in writing in the contract and on the invoice.

Frequently Asked Questions

Can a Student visa holder start a business in Australia?▾

It depends on the visa. Permanent residents and some temporary visas allow business activity, while Student and Working Holiday visas have working hour limits that restrict ongoing business operation. Confirm your visa conditions with the Department of Home Affairs or a MARA-registered migration agent.

Is an ABN application free?▾

Yes. Applying via the Australian Business Register (abr.business.gov.au) is free. Some agents charge fees, but applying yourself costs nothing.

When is GST registration mandatory?▾

GST registration is required within 21 days once annual GST turnover reaches AUD 75,000 (AUD 150,000 for non-profits) or is expected to. Taxi and ride-share drivers must register before their first trip regardless of turnover. You can also register voluntarily below the threshold. Once registered, you must lodge a Business Activity Statement (BAS) regularly. Source: ATO 'Registering for GST' (checked 2026-07)

Sole Trader or Pty Ltd — which is better?▾

Sole Trader is simple and inexpensive but does not separate personal and business liability. Pty Ltd is a separate legal entity offering asset protection, but with ASIC fees and additional accounting and legal costs. Consider switching to Pty Ltd as revenue grows or you hire staff.

Do I need an accountant?▾

Not legally required, but using a Registered Tax Agent or BAS Agent is strongly recommended once you register for GST or hire employees. Mistakes can lead to ATO penalties and interest, often costing more than professional fees.

Are there business associations or accountants who speak my language?▾

Yes. Most national communities run business associations in Sydney, Melbourne and Brisbane, and many accounting firms serve a particular community in its own language. You can find accountants who speak your language through the AUWith business directory or the community boards.

If I buy an existing business, who is responsible for staff annual leave and long service leave?▾

Under the Fair Work Act 2009, a buyer that is not an associated entity of the seller can choose whether to recognise employees' service for annual leave and redundancy. If service is not recognised, the seller must pay out untaken accrued leave. Long service leave is governed separately by state and territory laws, so check your state's rules. It is safest to spell out in the sale contract how employee entitlements are settled. Source: Fair Work Ombudsman (checked 2026-07)

Do I pay GST on the price when buying a business?▾

A qualifying sale of a going concern is GST-free. The conditions: the sale is for payment, the buyer is registered (or required to be registered) for GST, the parties agree in writing that it is a going concern sale, and the seller supplies everything needed to run the business and carries it on until the day of supply. If the conditions are not met, 10% GST can apply to the price, so settle this at contract stage. Source: ATO 'Sale of a going concern' (checked 2026-07)