The Australian entrepreneurial spirit is stronger than ever. According to the latest small business data from the Australian Small Business and Family Enterprise Ombudsman (ASBFEO), small businesses make up a staggering 97.3% of all Australian businesses. As of June 2025, there are over 2.6 million small businesses powering the economy, with the "self-employed" sector alone growing by 4.3% in the last year.
If you are wondering how to start a business in Australia, you are joining a community of millions. However, the path from a "great idea" to a "legal entity" requires more than just passion. It requires a clear understanding of the legal steps to starting a business and a tactical roadmap to ensure you don't become just another statistic.
This guide serves as your comprehensive starting a business in Australia checklist, designed to transition your vision into a fully compliant, thriving enterprise.
Following the right sequence is vital for long-term success. Here is an expanded guide on how to start a business in Australia with the depth needed to navigate the local market.
Before looking into how to start a business Australia-wide, start with a business plan that’s built on two essentials: clarity and proof.
Begin by defining what makes your offer different, whether it’s your pricing, expertise, speed, service model, or a niche product. Then, validate it with real market insights. Use sources like the ABS (Australian Bureau of Statistics) to understand your target audience, local demographics, and spending patterns in your state or territory. A quick gap analysis can also help you spot what the market is missing and where your business can realistically win.
From there, map everything into a plan that covers your executive summary, go-to-market strategy, operations, and five-year financial goals. Whether you’re starting your first business or scaling an existing one, the plan should act as a practical roadmap, not just a document.
This is the most critical legal step in starting a business: choosing the right business structure. You must decide whether to operate as a sole trader, a partnership, a company, or a trust. Each option has different implications for your personal liability and tax obligations under Australian law. If you’re not sure where to start, we highly recommend seeking professional advice from accountants.
An Australian Business Number (ABN) is a required identifier for businesses operating in Australia. It helps identify your business in transactions and is used to record and track business activity for tax and reporting purposes.
Unless you are using your own name, you must register your trading name with ASIC. This is a primary step in how to open business in Australia. Ensure the name isn't already trademarked by searching the IP Australia database.
Whether it’s a physical shopfront in a high-footprint CBD area or a home office in the suburbs, your principal place of business must be a physical address (not a PO Box) for ASIC registration purposes.
Determine the amount of cash required to start and sustain operations during the early stages. You might consider personal savings, bank loans, or specific Australian government grants to cover setup costs and day-to-day expenses while your revenue builds up.
While sole traders use their personal TFN, companies and partnerships require a separate business TFN. This ensures you are correctly identified for your annual tax returns.
If you anticipate your turnover will exceed $75,000 per annum, GST registration is mandatory. Even if you are below the threshold, registering may allow you to claim GST credits on eligible business purchases. Because the right approach depends on your business model, pricing, and cash flow, it’s best to speak with your accountant to understand GST obligations and whether registering early makes sense for you.
Using cash flow management tools allows you to set aside GST collected in real-time, ensuring you aren't caught short when your Business Activity Statement (BAS) is due to the ATO.
Depending on your industry, you might need a local council permit, a liquor licence, or a building certificate. Use the ABLIS tool to ensure you've ticked off the steps to starting a business regarding local regulations.
Separating your personal and professional finances is non-negotiable for clean bookkeeping. Most Australian banks offer specialized accounts for small businesses with integrated feeds for accounting software.
Registering a business name doesn't give you full legal ownership of it. Consider applying for a trademark through IP Australia to protect your brand, logo, and unique inventions.
From Public Liability to Professional Indemnity and Workers' Compensation, insurance is the safety net that prevents a single legal claim from ending your venture.
Register your .com.au or .au domain name. In the modern Australian economy, your digital storefront is often more important than your physical one. Ensure your social media handles match your business name. While setting up your site, prioritize security; use proven methods to protect your customers from payment fraud to build trust from your very first transaction.
Before you think about chasing payments, set up accounting software that helps you stay organised from day one. Tools like Xero, QuickBooks, and MYOB make it easier to create invoices, track cash flow, reconcile transactions, and keep reporting tidy. This reduces admin load and gives you a clearer view of how the business is actually performing.
Once your accounting system is in place, add a payment processor to shorten your payment cycle and reduce debtor days. Pinch Payments integrates with Xero, QuickBooks, and MYOB so you can automate invoice payments through direct debit and credit cards, set up payment plans and pre-approvals, and send automatic reminders.
As a local provider backed globally through Fiserv, Pinch helps protect cash flow early, so you can focus on delivery and marketing while the system handles the heavy lifting of getting you paid on time. Check how our clients utilise Pinch.
If you're hiring, you must understand the Fair Work Act, National Employment Standards (NES), and relevant industry Awards. This ensures your staff are paid correctly, and your business stays on the right side of the law.
Starting a business in Australia is exciting, but once the setup is done, cash flow becomes the real day-to-day priority. If you want a simpler way to send invoices, offer easy payment options, and reduce time spent chasing late payments, Pinch Payments can help small businesses stay on top of collections from day one.
Book a demo today to see how Pinch fits into your workflow.
Disclaimer: The information provided in this guide is for general informational purposes only. It does not constitute legal, financial, or taxation advice. While we strive to provide accurate and up-to-date details based on current Australian regulations, business requirements can change. We recommend consulting with a qualified accountant, lawyer, or business advisor before making any significant decisions or taking action based on this content.