Starting a Business
Turning an idea into a real business — ABN, business names, tax and free support, explained simply.
What do I do now?
You want to start a business — here are your first 5 steps
- 1
Check your visa conditions first — some visas limit self-employment or business activity. Look yours up on VEVO (free) or ask a free migration service.
- 2
Pick a business structure — most first-time founders start as a "sole trader": the simplest and cheapest option.
- 3
Get your ABN — free and online through the Australian Business Register. You need it to invoice customers.
- 4
Register your business name with ASIC if you will trade under any name other than your own.
- 5
Check whether your industry needs a licence (food, trades, transport and others do) on ABLIS — and get insurance before your first customer.
Understand it first
1Business structures
Every Australian business has a legal structure. The three most common: sole trader (you and the business are legally the same — simplest, cheapest to set up), partnership (two or more people share ownership), and company (the business is a separate legal entity — more protection but more cost and paperwork each year).
Most people start as a sole trader. You can change to a company later, once the business is earning — many successful businesses do exactly that.
What this means: Start simple. A sole trader business costs almost nothing to begin, and upgrading later is normal — not a step backwards.
2The ABN
An ABN (Australian Business Number) is an 11-digit number that identifies your business. It is free and you apply online through the Australian Business Register (ABR) — the official government site.
You need an ABN to invoice other businesses, avoid being taxed at the highest rate on payments, and claim GST credits. As a sole trader you keep using your own tax file number (TFN) for tax.
What this means: The ABN itself is always free. If a website charges you a fee to "get an ABN", it is not the official one — use abr.gov.au directly.
3Business names
If you trade under your own name (e.g. "Amina Hassan"), no registration is needed. If you want a different name (e.g. "Amina’s Catering"), you register it with ASIC for a small yearly fee.
Check the name is available first on the ASIC website — and check it is not already a well-known brand, so you avoid trouble later.
4Tax and GST basics
Keep records from day one — every invoice, receipt and bank transaction. As a sole trader, business income goes in your personal tax return, and you can claim genuine business expenses against it.
GST (goods and services tax) is a 10% tax added to most things sold in Australia. You must register for GST once your turnover reaches the threshold (around $75,000 a year) — and many choose to register earlier to claim credits.
A registered tax agent can prepare your books and tax return — their fees are a deductible business expense. Free guidance is always available from the ATO for small businesses.
What this means: Tax does not bite on day one — but record-keeping starts on day one. A shoebox of receipts is a real problem in year two.
5Licences, permits and insurance
Different industries need different approvals — food handling certificates, trade licences, working-with-children checks, council permits for a home business or market stall.
The Australian Business Licence and Information Service (ABLIS) tells you exactly what your business needs, for your industry and your state, in one search.
Most businesses also need public liability insurance before their first customer, and if you employ staff, workers’ compensation insurance is compulsory.
6Free support and mentoring
You do not have to figure it out alone — a lot of genuinely free help exists. business.gov.au has free business plan templates, grant finders and step-by-step guides.
Every state has a small business service (often called a Small Business Development Corporation or Commission) offering free or low-cost advice, and many councils and community organisations run free programs for new and multicultural founders.
7Watch out for scams
New business owners are targeted by scams: fake "ABN registration" services charging fees (the real ABN is free), fake "business name renewal" invoices, and fake grant or government-subsidy calls asking for your details.
Anything urgent, demanding payment by unusual methods, or asking for your myGov or bank login is a scam. Registering and renewing is always done through abr.gov.au and asic.gov.au directly.
Quick start checklist
0/6 doneWalaal tools that can help
Common questions
Business information here is general — not legal, tax or migration advice. Check with the ATO, ASIC, a free small business service or a registered migration agent before making decisions for your situation.