Guide
How to start a business in Australia: the registrations, the rules and the insurance
Starting a business in Australia is a short list of registrations and a longer list of decisions. Here are the steps business.gov.au and the ATO set out, from choosing a structure and getting an ABN to GST, licences and hiring, and the insurance that belongs at each step rather than as an afterthought.
- The registrations in order
- The GST, PAYG and licence rules
- Insurance at the right step
The steps, in order
business.gov.au’s guide to starting a business runs through the same sequence for everyone: decide the legal structure, get an Australian Business Number, register a business name if it differs from your own name, get a tax file number for the business, work out which tax registrations you need, check licences and permits, set up record keeping, and manage your risks, which includes getting the right insurance.
None of it is hard. The order matters because each registration asks for the one before it.
The registrations and what triggers them
| Step | What applies |
|---|---|
| Structure | Sole trader, company, partnership or trust. It decides your liability, tax and what you register |
| ABN | Most businesses need one. Registration is free |
| Business name | Register it if you trade under a name other than your own |
| Tax file number | All businesses need one. A sole trader uses their own |
| GST | Register within 21 days once your GST turnover reaches $75,000, or $150,000 for a non-profit. Taxi and rideshare drivers register from the first fare |
| PAYG withholding | Register before you pay an employee for the first time |
| Licences and permits | They depend on your activity, state and council. Trade licences, food licences and council permits are the common ones |
| Records | Choose a bookkeeping system and keep records from day one |
The insurance that belongs at each step
| When | Cover |
|---|---|
| Before you quote your first job | Public liability, because clients, councils and head contractors ask for a certificate of currency |
| If you give advice or design | Professional indemnity |
| When you buy stock, fit out premises or carry tools | Business insurance pack or Tools & equipment |
| When a vehicle does the work | Commercial vehicle |
| When you hire your first employee | Workers compensation, compulsory in every state |
| When you hold customer data or take payments online | Cyber insurance |
business.gov.au lists the compulsory covers as workers compensation once you employ, compulsory third party with vehicle registration, and public liability where a state or occupation requires it.
How many businesses start, and how many last
460,461 businesses entered the ABS register in 2025-26, an entry rate of 16.9%, and 375,331 left, an exit rate of 13.8%. Of those entries, 316,178 were brand-new businesses. Survival depends partly on structure: 39.6% of the sole-proprietor businesses that started in 2022-23 were still trading at June 2026, against 56.1% of companies.
What most new businesses get wrong
Treating insurance as a renewal-day problem. The certificate of currency is asked for before the first job, not after it, and the licence conditions for electricians, plumbers and builders include insurance in some states. Buying it when a client asks means buying in a hurry.
The second is insuring the business under a home policy. Home policies often limit or exclude business activity, so a home-based business needs its own cover, and tools in the car need their own section.
Compare the covers a new business needs
Starting a business questions
What do I need to start a business in Australia?
A structure, an ABN, a business name if you trade under one, a tax file number, the tax registrations your turnover and staff trigger, any licences your activity needs, a record-keeping system and the insurance your work requires.
Do I need an ABN to start a business?
Most businesses need one, and clients and suppliers expect it. business.gov.au says registration is free.
When do I have to register for GST?
Within 21 days of your GST turnover reaching $75,000 ($150,000 for a non-profit). Taxi and rideshare drivers must register from their first fare. Below the threshold, registration is optional.
Is insurance compulsory for a new business?
Some is. Workers compensation once you employ, CTP with vehicle registration, and public liability where a state or licence requires it. The rest is set by contracts, leases and councils.
Can I start as a sole trader and change later?
Yes. Many businesses start as sole traders and move to a company when the payroll or the liability grows. Our sole trader vs company guide covers the trade-offs.
Keep reading
More guides
Sources
- business.gov.au: Guide to starting a business
- ATO: Registering for GST
- business.gov.au: Hiring employees
- business.gov.au: Types of business insurance
- business.gov.au: Difference between a sole trader and a company
- ABS: Counts of Australian Businesses, including Entries and Exits, July 2022 to June 2026
Starting out