How to open a business in Australia can feel overwhelming if you’re new to entrepreneurship. This guide breaks the process into six clear steps—from planning your idea to managing ongoing obligations—helping you launch your venture with confidence.
Step 1: Research and Plan Your Idea
Effective businesses start with smart planning:
Market research: Identify your ideal customers, check demand, and study competitors. Knowing trends in your sector helps you position your offering more effectively.
Business plan: Map out your product or service, pricing strategy, operational processes, marketing approach, and financial forecast. A robust plan not only guides your actions but also supports funding or investor applications.
Get expert advice: Talking with mentors, business advisors, or accountants early can clarify compliance issues and financial viability. Government tools like templates and checklists on business.gov.au are free and invaluable for beginners.
Step 2: Decide on a Business Structure
Choosing the right structure affects your legal liability, taxes, and administrative duties:
- Sole trader
Simple and low-cost: operate under your personal TFN, but be personally liable for debts. - Partnership
Shared responsibility between you and others; needs a partnership agreement, and each partner is still personally liable. - Company (Pty Ltd)
Separate legal entity with limited liability; requires ASIC registration, ACN, and more regulatory compliance. - Trust
Trustee holds assets for beneficiaries. It offers asset protection and flexibility but is complex and usually needs legal setup.
Choose the structure that fits your goals and risk tolerance—this decision is hard to reverse later.
Step 3: Register Your Business (ABN & Name)
With structure in place, you can register your business identity:
- ABN (Australian Business Number)
A unique 11-digit number required for invoicing, taxes, and official dealings. Apply via the Australian Business Register online. - Business name
If trading under a different name, register with ASIC after checking availability and trademarks. - ACN (Australian Company Number)
Automatically issued if you register a company.
Register all components using the streamlined Business Registration Service.
Step 4: Register for Taxes and Licences
Once registered, you need to cover tax and legal compliance:
- GST registration: Mandatory if turnover exceeds AU$75,000. GST is charged at 10% on most sales, but if you’re under the threshold you may optionally register.
- TFN and PAYG withholding: Sole traders use their personal TFN. Companies and trusts get a separate TFN. Register for PAYG if you employ staff or directors, so tax is withheld correctly.
- Business licences: Use ABLIS to find and obtain permits relevant to your industry—like food safety, trade licenses, or professional registrations.
Staying compliant reduces risk and builds trust with customers and regulators.
Step 5: Set Up Finances and Systems
Strong organisation is the foundation of payables, receivables, and payroll:
- Business bank account: Keeps personal and business finances separate—essential for legal and tax purposes.
- Accounting system: Use simple software or apps from day one to track income, expenses, and financial health. Doing so will save time during BAS and end-of-year tax preparations.
- Payroll and superannuation: If you hire staff, you must withhold PAYG tax, report via Single Touch Payroll (STP), pay mandatory super (11% in 2025), and comply with award or confirmed wages and conditions.
Step 6: Understand Ongoing Responsibilities
Launching your business isn’t the end—you need to maintain compliance:
- Lodge BAS and tax returns: Quarterly BAS lodgements for GST and PAYG, plus annual income tax returns for your business structure.
- Maintain accurate records: Keep evidence of sales, purchases, payroll, and receipts for five years (ATO requirement).
- Renew permits and registrations: Check expiry dates for your ABN, business name, licences, and update any changes.
- Stay informed of legal updates: Tax and business regulations evolve; you can stay compliant by using government alerts or professional guidance.
Additional Considerations for Business Owners
Funding & Cash Flow
Consider your startup costs—equipment, marketing, lease agreements—and how you’ll fund them. Whether it’s savings, loans, grants, or investor funding, you’ll need to plan solid cash-flow forecasts.
Insurance
Don’t overlook essential policies like public liability, professional indemnity, and, if you have staff, workers’ compensation insurance.
Digital & Marketing Setup
Secure your domain name and establish social media presence. Use invoicing tools and perhaps set up a simple website to build credibility from day one.
Risk Planning
Draft a contingency plan for unexpected events (e.g. supply chain issues or market fluctuations) so you can pivot quickly if needed.
Why Partner with Professionals?
Managing compliance, tax lodgements, and structure alignment takes time and expertise. That’s where professional support adds value:
Working with TTS & Associates can help you:
- Set up the correct structure
- Manage ABN, GST, PAYG registrations
- Keep books, lodge BAS, and file annual returns
- Provide timely advice on growth, cash flow, and risk
- Ensure all legal, tax, and licensing obligations are met
With experienced partners on your side, you can build your business confidently.
Final Word
So that’s how to open a business in Australia—starting from idea validation, structure selection, registration, tax setup, systems, and ongoing compliance. By following these steps and staying organised, you lay the foundation for sustainable success.
When you’re ready to launch and focus on growth rather than red tape, contact us. The expert team at TTS & Associates is ready to ensure your business operates smoothly from day one.
This guide provides general advice and should not replace personalised professional advice tailored to your circumstances.
