How to Start a Business in Australia: A Comprehensive Checklist

Starting a business in Australia can be one of the most rewarding steps in your professional journey but it requires careful planning, understanding of legal obligations, and smart execution. Whether you’re a first-time small business owner or looking to grow your existing venture, this guide takes you through every essential step.

Below is your complete checklist to start a business in Australia, from the initial planning stages to ongoing operations and compliance.

1. Planning & Preparation

Develop a business plan

Start by clearly outlining your business idea, goals, strategies, target market, and financial projections. A sound business plan not only guides your startup but also helps attract funding and support.

Choose a business structure

Decide on a suitable business structure—whether you operate as a sole trader, partnership, company, or trust. Each has its own legal and tax implications. Check business.gov.au for comparisons and requirements.

Secure funding

Explore your options: personal savings, business loans, government grants, or investment from partners. Knowing your start-up costs is essential to avoid cash flow issues down the track.

Research your market

Understand your target audience, competitors, and industry trends. The Australian Bureau of Statistics (ABS) and business.gov.au offer tools and data to support your market research.

Find a business mentor

Consider seeking help from an experienced business advisor or mentor who can provide guidance and support throughout your business journey.

2. Business Registration & Legal

Choose and register a business name

Make sure your business name is available using the Australian Government’s business registration service, and register it with ASIC (Australian Securities and Investments Commission).

Obtain an ABN (Australian Business Number)

An ABN is required for trading, invoicing, and claiming GST credits. You can apply through the Australian Business Register.

Register for GST

If your business has a GST turnover of $75,000 or more, you must register for GST. This will also mean you’ll need to lodge business activity statements (BAS) regularly.

Register for other taxes

Depending on your business structure, you might also need to register for PAYG withholding, Fringe Benefits Tax (FBT), or fuel tax credits.

Obtain necessary licences and permits

Your business will need specific licences or permits depending on the industry and state or territory. Use the Australian Business Licence and Information Service (ABLIS) to find out what applies.

3. Financial Setup

Open a business bank account

Set up a separate business account to manage your finances and track income and expenses efficiently.

Set up accounting and bookkeeping systems

Choose the right accounting software or hire an accountant or financial advisor to keep accurate financial records and prepare for tax returns.

Understand your tax obligations

Familiarise yourself with income tax, GST, and superannuation requirements. Keeping track of your payment methods and cash flow will help avoid financial pitfalls.

Get business insurance

Protect your assets and manage risk by getting appropriate insurance such as public liability insurance, professional indemnity, or product liability, depending on the type of business.

4. Operations & Marketing

Choose a business location

Decide if you’ll run your business from home, lease a shopfront, or operate from a co-working space. Your location can affect your licensing and zoning requirements.

Set up your online presence

Register a domain name, create a professional website, and set up social media profiles to connect with your audience. Your online presence is key to standing out in today’s market.

Start marketing your business

Develop a marketing plan that includes digital marketing, content creation, social media, SEO (to boost visibility in search engines), and traditional methods to attract and retain customers.

Recruit employees (if needed)

If hiring staff, register for PAYG withholding, understand payroll obligations, and comply with Fair Work Australia regulations. Ensure all staff have the appropriate health and safety training.