Starting Up

Starting a Business in Australia 2025: Complete Checklist

Published January 2025 • 15 min read

Starting a business in Australia involves more than just a good idea. From choosing the right structure to understanding your legal obligations, there's a lot to get right from day one.

This comprehensive checklist covers everything you need to launch a legally compliant business in Australia in 2025, including recent changes to regulations and requirements.

2.5M+

Active small businesses in Australia

1. Choose Your Business Structure

Your business structure affects everything from liability to tax rates. Choose carefully - changing later can be complex and costly.

Structure	Pros	Cons	Best For
Sole Trader	Simple, cheap, full control	Unlimited personal liability, harder to grow	Freelancers, low-risk businesses
Partnership	Shared resources, simple setup	Joint liability, potential disputes	Professional services, joint ventures
Company (Pty Ltd)	Limited liability, professional image, easier to sell	More compliance, higher costs	Growing businesses, higher risk ventures
Trust	Asset protection, tax flexibility	Complex, expensive to set up	Family businesses, investment

Tax Rate Comparison (2024-25):

Sole trader: Personal tax rates (up to 45% + Medicare levy)
Company: 25% for base rate entities (turnover <$50M)

2. Register Your Business Name

If you're trading under a name other than your own (sole trader) or your company's registered name, you need to register a business name.

Business Name Registration

Cost: $44 for 1 year or $102 for 3 years
Where: ASIC via business.gov.au
Requirements: Must be unique, not misleading

Tip: Check domain name availability before registering. Having matching business name and website makes branding easier.

Company Registration (If Applicable)

Cost: $576 for standard registration
Where: ASIC
Requirements: At least one director (Australian resident), registered office address

3. Get Your ABN

An Australian Business Number (ABN) is your business identifier. It's free and essential for operating.

ABN Requirements:

You're carrying on an enterprise in Australia
You have a Tax File Number (TFN)
You can prove your identity

Where to apply: Australian Business Register (abr.gov.au)

Cost: Free

Processing time: Usually immediate if application is straightforward

Warning: If businesses can't confirm your ABN, they must withhold 47% from payments to you. Always provide your ABN on invoices.

4. Register for GST (If Required)

GST registration is mandatory if your annual turnover is $75,000 or more ($150,000 for non-profits).

Situation	GST Registration
Turnover under $75K	Optional (but can be beneficial)
Turnover $75K or more	Mandatory within 21 days of reaching threshold
Taxi/rideshare driver	Mandatory regardless of turnover
Non-profit $150K+	Mandatory

For more details, see our Complete GST Guide for Small Business.

5. Register for PAYG Withholding (If Hiring)

If you're paying employees, contractors, or other businesses that don't provide an ABN, you need to register for PAYG withholding.

Register via: ATO Business Portal or your tax agent

Obligations:

Withhold tax from payments
Report and remit to ATO (usually quarterly)
Provide payment summaries (via STP)

6. Business Licences and Permits

Depending on your industry and location, you may need specific licences. Common examples:

Industry	Typical Licences Required
Food & Beverage	Food business registration, liquor licence
Building & Trades	Builder's licence, trade certifications
Health & Wellness	Professional registration, clinic permits
Retail	Possibly none, depends on products
Transport	Operator accreditation, vehicle permits
Financial Services	AFSL (Australian Financial Services Licence)
Childcare	Service approval, working with children check
Home-based	Council approval (for some uses)

Find Your Requirements: Use the Australian Business Licence and Information Service (ABLIS) at ablis.business.gov.au to identify all licences needed for your specific business.

7. Business Insurance

Some insurance is mandatory; other types are strongly recommended.

Mandatory Insurance

Workers' Compensation: Required if you have employees (varies by state)
Third Party Motor Insurance: Included in vehicle registration
Professional Indemnity: Required for some professions (lawyers, accountants, financial advisers)

Recommended Insurance

Public Liability: Covers injury or damage to third parties ($5M-$20M typical)
Product Liability: If you sell or manufacture products
Business Contents: Equipment, stock, fixtures
Cyber Liability: Data breaches and cyber attacks
Income Protection: Especially for sole traders

Typical Insurance Costs (Small Business)

Public Liability ($10M) $300-$800/year

Professional Indemnity $500-$2,000/year

Business Contents $300-$1,000/year

Cyber Liability $500-$1,500/year

8. Set Up Business Banking

Keep business and personal finances separate from day one. This makes accounting, tax, and auditing much simpler.

What You Need

Business transaction account
Separate savings account for tax (set aside 25-30%)
Business credit/debit card
Payment facilities (EFTPOS, online payments)

Documents Typically Required

ABN certificate
Business name registration
Personal ID for all directors/partners
Company registration (if applicable)

9. Accounting and Record Keeping

Good record keeping is a legal requirement and makes tax time much easier.

Records You Must Keep (5 Years Minimum)

Income and sales records
Expense receipts and invoices
Bank statements
Employee records
Asset purchase records
Stock records
GST records (if registered)

Accounting Setup Checklist:

Choose accounting software (Xero, MYOB, QuickBooks)
Set up chart of accounts
Connect bank feeds
Set up invoice templates
Establish expense tracking system
Find an accountant or BAS agent

10. Employer Obligations (If Hiring)

If you plan to hire employees, you have significant legal obligations.

Before First Hire

Register for PAYG withholding
Register for workers' compensation insurance
Set up payroll system with STP capability
Understand the relevant Award or Enterprise Agreement

Ongoing Obligations

Superannuation: 11.5% (2024-25), increasing to 12% from July 2025
Single Touch Payroll: Report every pay run
Fair Work compliance: Minimum wage, leave entitlements, NES
Work health and safety: Safe workplace requirements

For detailed payroll guidance, see our STP Phase 2 Guide.

11. Domain Name and Online Presence

Even if you're not an online business, customers expect to find you online.

Domain Name

.com.au: Requires ABN, most trusted for Australian businesses
.au: New option, also requires ABN
.com: International, no ABN required

Cost: $15-$50/year depending on registrar

Minimum Online Presence

Google Business Profile (free, essential for local search)
Basic website with contact info, services, ABN
Social media presence relevant to your industry

12. Privacy and Consumer Law

Privacy Act Obligations

If your business has annual turnover over $3 million, or handles health records, you must comply with the Privacy Act.

Privacy policy on your website
Secure handling of personal information
Data breach notification procedures

Note: Even if not legally required, having a privacy policy builds customer trust and is good practice for all businesses.

Australian Consumer Law

All businesses must comply with Australian Consumer Law:

Consumer guarantees on goods and services
No false or misleading claims
Fair contract terms
Proper pricing and receipts

Startup Costs Estimate

Typical Startup Costs

ABN Registration Free

Business Name (3 years) $102

Company Registration (if needed) $576

Domain Name (1 year) $20-50

Public Liability Insurance $300-800

Accounting Software (1 year) $200-600

Basic Website $0-500

Industry Licences Varies

Estimated Total (Sole Trader) $600-2,000

Estimated Total (Company) $1,200-3,000

Key Dates and Deadlines

Obligation	Deadline
GST registration (if required)	Within 21 days of exceeding $75K
BAS lodgement (monthly)	21st of following month
BAS lodgement (quarterly)	28th of following month
Super payments	28th day after each quarter
STP finalisation	14 July (after EOFY)
Tax return (individual/partnership)	31 October (or via tax agent)
Company tax return	28 February (or via tax agent)

Master Startup Checklist

Complete Startup Checklist:

Choose business structure
Register business name
Register company (if applicable)
Apply for ABN
Register for GST (if required)
Register for PAYG withholding (if hiring)
Check licence requirements (ABLIS)
Obtain necessary licences and permits
Arrange workers' compensation (if hiring)
Arrange business insurance
Open business bank accounts
Set up accounting software
Find an accountant
Register domain name
Create Google Business Profile
Set up basic website
Create privacy policy
Understand consumer law obligations
Set up record keeping system

Manage Your New Business

BizziKit offers free tools to help you run your business - invoicing, inventory, CRM, and more.

Explore Free Tools

Key Takeaways

Structure matters: Choose wisely - it affects liability, tax, and growth potential
ABN is essential: Free to get, required for most business activities
GST threshold: $75K turnover triggers mandatory registration
Licences vary: Check ABLIS for your specific requirements
Insurance protects you: Public liability is critical for most businesses
Separate finances: Business and personal accounts must be kept apart
Keep records: 5 years minimum, essential for tax compliance
Employer obligations are significant: Super, STP, workers' comp, Fair Work

Final Tip: Don't try to figure everything out alone. A good accountant will save you money and stress in the long run. Many offer startup packages with fixed pricing.