Launching a venture is exciting, but the early decisions you make will shape tax, risk and growth for years. If you’re asking “how do you start a business in Australia”, this step-by-step overview covers structure, registrations, taxes and simple routines to stay compliant from day one. We link to authoritative government sources so you can double-check the rules yourself

How do you Start a Business in Australia

1) Choose the right structure (before you spend $1)

Your structure drives how profits are taxed and who is liable for debts. Common options are: sole trader (simple, inexpensive, personally liable), partnership (shared control and risk), company (Pty Ltd) (separate legal entity; directors have duties), and trust (flexible distributions; needs a deed and trustee). The ATO’s “Before you start a business” page outlines tax and registration implications to consider at this stage. (See ATO guidance.)

Tip: If you expect to bring in investors, hire staff or seek finance, a company or trust may be worth exploring. For a practical walk-through of pros and cons, see TTS & Associates’ Starting a Business in Australia: A Step-by-Step Guide.

2) Secure your identifiers: ABN, name and (if a company) director ID

Most businesses need an Australian Business Number (ABN) to interact with government, invoice correctly and register for taxes. If you’ll trade under a name other than your own, register a business name with ASIC. (Business name registration doesn’t create a separate legal entity.) The ASIC page explains who must register and links to the online application. (ASIC guidance.)

If you will be a company director, you must obtain a director identification number from ABRS before or shortly after appointment. It’s a one-off verification that stays with you across companies. (ABRS director ID.)

3) Work out your tax registrations early

Work out your tax registrations early - How do you Start a Business in Australia

Three registrations commonly apply from day one or as you grow:

  • GST (Goods and Services Tax): You must register when your GST turnover reaches $75,000 (non-profits: $150,000), or if you provide taxi/ride-sourcing. The ATO explains when to register and the 21-day rule once you pass the threshold. (ATO GST registration.)
  • PAYG withholding: Register if you pay employees or directors so you can withhold tax and report it via your activity statements. (See ATO BAS/BAS hub.)
  • PAYG instalments: As profits rise, the ATO may place you in the instalment system to pre-pay income tax during the year. (ATO BAS hub.)

If you’re still asking “how do you start a business in Australia” from a tax perspective, the government’s starter guide stitches these steps together clearly. (business.gov.au guide.)

4) Licences, permits and insurance

Industry and location determine approvals you’ll need (for example, food, building, health, transport). Use the business.gov.au tools to check licence requirements and keep a register of renewal dates. Pair this with public liability cover if you see customers face-to-face and professional indemnity if you provide advice. (business.gov.au guides.)

5) Set up your finance toolkit and record-keeping

Open a separate business bank account to keep transactions clean. Choose cloud accounting software that maps to BAS labels (G1, 1A, W1, etc.) and connects to your bank. Good software reduces coding errors and makes BAS a monthly admin task rather than a quarterly panic. The ATO’s Simpler BAS material shows how small businesses can reduce GST coding complexity without changing the tax outcome. (ATO Simpler BAS.)

Document routine: keep invoices, contracts, payroll and working papers for at least five years. Store them in a period-based folder (e.g., “FY26-Q1”) so BAS and year-end are straightforward.

6) Understand BAS and your ongoing calendar

If you register for GST or have PAYG obligations, you’ll lodge an activity statement either monthly or quarterly. Standard quarterly due dates are 28 Oct, 28 Feb, 28 Apr and 28 Jul, with the “next business day” rule if a date falls on a weekend/public holiday. Your specific date appears on each BAS; if you lodge through a registered agent you may receive an extended program. (ATO due-dates page.)

For a plain-English explainer and planning checklist, see TTS & Associates’ Quarterly BAS Due Dates: Key Lodgement Deadlines.

7) Build a simple compliance rhythm

Adopt a light cadence so nothing piles up:

  • Weekly: reconcile bank feeds; attach missing invoices.
  • Monthly: check GST coding; confirm Single Touch Payroll totals align with wages and withholdings.
  • Quarterly: draft BAS in week 3; sense-check spikes in 1A/1B and W1/W2; lodge early and schedule payment for the due date.

Late lodgement can trigger Failure to Lodge (FTL) penalties and General Interest Charge (GIC) on unpaid amounts, so lodge even if you need a payment plan. (ATO penalty and GIC guidance.)

How do you Start a Business in Australia - common pitfalls

8) Common pitfalls—and quick fixes

  • Mixing personal and business spending: fix with a dedicated account and card.
  • Registering GST too late: forecast turnover; register as soon as you’ll cross $75,000 to avoid back-dating issues. (ATO GST registration rules.)
  • Weak invoices: include legal name, ABN, date, description, price and GST (if registered).
  • Ignoring licences: use government checkers before trading. (business.gov.au.)

9) Your quick start checklist

  1. Pick a structure and, if forming a company, obtain your director ID.
  2. Apply for an ABN and register a business name if required.
  3. Assess GST, PAYG withholding and PAYG instalments and register as needed.
  4. Open a bank account, set up software and a five-year records plan.
  5. Map your BAS calendar and set reminders.

Getting these foundations right means fewer surprises and more time to serve customers. If you’d like a deeper dive, our team’s guide How to Register a Business in Australia expands on the registrations and sequence.

General information only – seek professional advice before acting.