To start a business in Australia, choose a structure (sole trader, partnership, company or trust), apply for a free ABN through the Australian Business Register, register a business name with ASIC if you trade under anything other than your own name, and then register for GST, PAYG withholding and super if your turnover or staffing requires it. The government fees are small: from 1 July 2026 a business name costs A$47 for one year or A$108 for three, and registering a company costs A$636.
Most of the work in starting a business in Australia is deciding what to register and in what order, not paying for it. The federal government, the Australian Taxation Office (ATO) and the Australian Securities and Investments Commission (ASIC) all publish their own guidance, and the steps overlap. This guide pulls them into one sequence, with the 2026 thresholds and fees we could confirm from official pages. If you only need the ABN step, our separate ABN registration guide covers it in more detail.
Business Structures Australia: Which One Fits
Your structure decides who is liable for debts, how you are taxed and which registrations you need. The Australian Government’s business.gov.au structure guide compares four main options, and the ATO’s key tax obligations page explains how each one is taxed. The table below summarises both.
| Structure |
Who Is Liable For Debts |
Setup And Cost |
How Tax Works |
| Sole trader |
You, personally |
Simple and low cost; a separate bank account is not required |
Business income goes in your individual tax return at your individual rate, using your own TFN |
| Partnership |
You and your partners share debts and losses |
Moderate setup, medium cost; a separate bank account is required |
The partnership has its own TFN and lodges a return, but does not pay tax itself. Each partner pays tax on their share |
| Company |
Generally the company, as a separate legal entity |
Complex setup, medium to high cost; a separate bank account is required |
The company has its own TFN, lodges a company tax return and pays tax at the company rate |
| Trust |
The trustee |
Highly complex, high cost; a separate bank account is required |
The trust has its own TFN. Beneficiaries generally pay tax on income distributed to them; the trustee pays on undistributed income |
business.gov.au also lists co-operatives, which are member-owned and need at least five members. Most new small businesses start as a sole trader or a company.
Sole Trader
This is the default if you start trading alone and do nothing else. There is no separate legal entity, so you and the business are the same for liability purposes. You report business income and expenses in your own tax return and use your individual TFN. You can trade under your own name without registering a business name, provided you do not change or add to it.
Partnership
A partnership is two or more people sharing income or losses. It needs its own TFN and ABN and lodges an annual partnership return showing how income or losses are split. Settle roles, profit splits and exits in writing before a dispute arises.
Company
A company limits your personal liability because it is a separate legal entity, but it brings higher compliance. Directors must have a director ID before the company is registered, the company needs its own TFN, and it must pay super for eligible workers, including directors, according to the ATO.
Trust
A trust is run by a trustee, who bears the debts and makes the decisions. It suits some family and investment arrangements, but business.gov.au rates its setup as highly complex and its cost as high, so get professional advice first. The cost of that advice is worth comparing, and our listing of accountants in Sydney is a starting point if you are weighing a company or trust.
Get Your TFN And ABN
A tax file number (TFN) identifies you or your entity to the ATO. Sole traders use their individual TFN for both personal and business dealings. Partnerships, companies, trusts and other organisations need a separate business TFN, which you can apply for through the Australian Business Register, a registered tax agent or a paper form.
An Australian business number (ABN) is an 11-digit public identifier. The ATO says it is needed to operate in the GST system, avoid PAYG tax on payments you receive, confirm your business identity and access government online services. The ABN does not replace your TFN. Registration is free through the Australian Business Register (ABR), and the ABR states it does not charge for online or paper applications. A tax agent may charge a fee for doing it for you.
Not everyone is entitled to an ABN. The application asks questions to check eligibility, and you should only apply if you are carrying on a business or enterprise. Have your business structure, proof of identity and details of your activities and associates ready. If your application is complete you generally learn the outcome straight away. If it needs review, you receive a reference number and the review can take up to 20 business days. Companies must have an ACN from ASIC before they can apply for an ABN.
Register A Business Name Or A Company
Register A Business Name Australia
If you trade under anything other than your own legal name, you must register the name with ASIC. ASIC’s guidance says you need to register if you trade under a name other than your own first name and surname (for partnerships, all partners’ names; for companies, the registered company name). The ATO’s example is that trading as "John Smith" needs no registration, but "John Smith Landscaping" does.
To register a business name Australia wide, you need an ABN or an ABN reference number. You can apply through ASIC Connect if you already have an ABN, or use the Business Registration Service to get an ABN and register the name in one go. You will need a service of documents address (a street address or PO Box in Australia) and a principal place of business address. Check the name on the ASIC register first: a green result means available, amber means it needs assessment and red means unavailable. Registration takes effect once the application is submitted and payment clears, which ASIC says can take up to 24 hours.
A business name registration is not the same as protecting a brand. It does not give you ownership of the name. Trade marks, patents and design rights are applied for separately with IP Australia.
Register A Company
If you pick a company, you register with ASIC through the Business Registration Service. ASIC’s company registration guidance lists what you must provide:
- A director ID for each director, obtained before the company is registered.
- The name, former names, home address and place and date of birth of each director and secretary, plus their signed consent.
- A registered office address and a principal place of business address.
- Your share structure and, for a proprietary company, each member’s name and home address.
- Internal rules: the replaceable rules in the Corporations Act 2001, your own constitution, or a mix of both.
The company name is optional at registration. If you do not choose one, the name defaults to the ACN plus the company type, for example "ACN 123 456 789 Pty Ltd". Once registered, you receive an ACN and a certificate of registration by email, and a corporate key is posted to the registered office address.
The Business Registration Service lets you apply for most registrations at once: ABN, business name, business TFN, company, GST, PAYG withholding, fringe benefits tax and others. Note that individual TFNs and director IDs are handled separately through the ATO and the Australian Business Registry Services.
Do You Need To Register For GST?
The ATO’s GST registration page sets the rules. You must register when your GST turnover is A$75,000 or more (A$150,000 for non-profit organisations). GST turnover is your business income, not your profit, with certain items such as GST included in sales removed.
| Situation |
Must You Register? |
| Current GST turnover (this month plus the previous 11) is A$75,000 or more |
Yes |
| Projected GST turnover (this month plus the next 11) is A$75,000 or more, including a new business expecting to reach it in year one |
Yes |
| You provide taxi, limousine or ride-sourcing services |
Yes, regardless of turnover |
| You earn income through sharing economy or digital platforms such as food delivery |
Yes, according to the ATO |
| You want to claim fuel tax credits |
Yes |
| None of the above |
No, but you may register voluntarily |
Once you are required to register, you have 21 days. If you should have registered and did not, you may owe GST on sales since the date you were required to register, plus penalties and interest. If you register voluntarily, you generally need to stay registered for at least 12 months. Registering lets you claim GST credits on business purchases, but it also means adding GST to your prices and lodging activity statements.
Employing People: PAYG Withholding, Super And Wages
The ATO says that if you employ people you need to register for PAYG withholding and meet super obligations for eligible employees. Two 2026 changes matter for new employers.
- Payday Super. From 1 July 2026, employers pay super with each payday rather than quarterly. The ATO says the super guarantee rate remains 12%, and contributions must reach the employee’s fund within 7 business days of payday (with exceptions such as new employees). Eligible workers can include independent contractors who are paid mainly for their labour.
- National minimum wage. business.gov.au reports it rises 4.75% to A$26.44 per hour (A$1,005 per week) from the first full pay period starting on or after 1 July 2026. Awards and agreements may set higher rates for your industry.
Payroll tax is a state and territory tax. business.gov.au points employers to payrolltax.gov.au to check the rules where they operate, because thresholds and rates differ by state.
Insurance, Licences And State Rules
Licence requirements depend on your industry and location. business.gov.au directs new businesses to the Australian Business Licence and Information Service (ABLIS) to check which licences and permits apply. Confirm your own requirements on ABLIS and with your state regulator.
The ATO notes that a business should have its own business bank account and its own insurance, such as public liability and workers’ compensation (called WorkCover in some states). Workers’ compensation rules are set by each state and territory, so check with your state’s scheme before you hire anyone.
Keep your details current. The ATO says you must notify it within 28 days of changes such as a new address or authorised contact. If you change structure, for example from sole trader to company, you generally need a new ABN, and you cancel the old one.
What It Costs To Get Set Up
Government registration is cheap compared with the cost of advice. The fees below are from business.gov.au’s summary of changes from 1 July 2026. ASIC’s own fee schedule pages we reviewed displayed placeholder values rather than dollar amounts, so confirm the figures on ASIC’s site before paying.
| Item |
Fee |
Notes |
| ABN |
Free |
Through the Australian Business Register. A tax agent may charge for lodging it |
| Business name, 1 year |
A$47 |
Was A$45 before 1 July 2026 |
| Business name, 3 years |
A$108 |
Was A$104 before 1 July 2026 |
| Company registration |
A$636 |
Was A$611. Depends on company type, so confirm |
| Annual review fee, proprietary company |
A$342 |
Was A$329. A late fee applies if not paid within 2 months of the review date, according to ASIC |
| Director ID |
Check the Australian Business Registry Services |
Needed before a company is registered |
| Accountant or lawyer setup advice |
Varies |
Quote-based; compare several |
A useful 2026 note for equipment-heavy start-ups: business.gov.au reports the A$20,000 instant asset write-off becomes permanent from 1 July 2026, letting businesses with turnover up to A$10 million immediately deduct eligible assets costing less than A$20,000.
Step By Step Checklist
| Step |
Action |
Where |
| 1 |
Test the idea and choose a structure |
business.gov.au; an accountant or lawyer |
| 2 |
Get a TFN (individual, or business TFN for a partnership, company or trust) |
ATO / Australian Business Register |
| 3 |
If a company, get director IDs and register with ASIC to obtain an ACN |
Australian Business Registry Services / Business Registration Service |
| 4 |
Apply for an ABN |
Australian Business Register |
| 5 |
Register a business name if you trade under a different name |
ASIC |
| 6 |
Check whether you must register for GST, within 21 days of reaching the threshold |
ATO |
| 7 |
If hiring, register for PAYG withholding and set up super and payroll |
ATO; state revenue office for payroll tax |
| 8 |
Check licences and permits for your industry |
ABLIS, state and local councils |
| 9 |
Open a business bank account and arrange insurance |
Bank; insurer |
| 10 |
Diarise renewals: business name, company review fee, activity statements |
Your calendar |
Common Mistakes
- Paying a third party for a free ABN. The ABR does not charge for applications. Use the official site and only pay an agent if you want help.
- Trading under a name you have not registered. Anything beyond your own name for a sole trader needs an ASIC registration.
- Missing the 21-day GST window. Monitor your rolling 12-month turnover monthly, not just at tax time.
- Choosing a structure by default. Sole trader is easy to start but leaves personal assets exposed. Compare it with a company before you take on contracts or debt.
- Forgetting director ID. A company cannot be registered until each director has one.
- Not updating details. The 28-day notice period for ATO changes catches many owners out.
- Ignoring industry licences. Registering an ABN does not give you permission to operate in a licensed trade.
Getting Professional Help
You can register a sole trader business yourself in an afternoon. A company, trust or hiring plan is where an accountant or lawyer earns their fee. If you are in Melbourne, our listing of accountants in Melbourne can help you compare providers, and for company constitutions, shareholder agreements and trust deeds you can review law firms in Sydney or law firms in Melbourne.
When comparing quotes, ask for a fixed fee for the specific scope (structure advice, registrations, a partnership or shareholder agreement), what is excluded, and whether government fees are billed separately at cost. For wider local options such as bookkeepers, web designers and insurance brokers, browse the Sydney business services directory or the Melbourne business services directory.
Frequently Asked Questions
How do I start a business in Australia with no money?
Register as a sole trader: the ABN is free, you can trade under your own name without a business name registration, and you use your own TFN. Your main costs are insurance, any required licences and tools. If you add a trading name, ASIC charges A$47 for one year from 1 July 2026. Keep records of income and expenses from day one.
How to register a business in Australia as a foreigner?
Eligibility depends on your visa and residency status, and this guide cannot confirm those rules. The ABR and ATO decide whether you are entitled to an ABN, and a company has extra requirements around directors. Check your visa conditions with the Department of Home Affairs and speak to a registered tax agent or migration professional before you apply.
Do I need an ABN to start a business?
You need one if you are carrying on a business and want to operate in the GST system, avoid PAYG tax withheld from payments, or register a business name with ASIC, which requires an ABN or an ABN reference number. Not everyone is entitled to an ABN, so answer the eligibility questions honestly when you apply.
What is the best business structure in Australia for a small business?
There is no single best answer. Sole trader is the simplest and cheapest but offers no liability protection. A company limits liability but costs more to set up and maintain. Partnerships and trusts suit specific situations. Compare liability, tax and admin costs, and ask an accountant to model your numbers.
How much does it cost to register a company in Australia?
business.gov.au reports ASIC’s company registration fee rose from A$611 to A$636 from 1 July 2026, and the annual review fee for a proprietary company rose from A$329 to A$342. Add the cost of any advice, a constitution if you want one, and director IDs, which you obtain before registering.
When do I need to register for GST?
When your current or projected GST turnover reaches A$75,000 (A$150,000 for non-profits), or from day one if you drive taxis or limousines or provide ride-sourcing. You have 21 days after you are required to register. Below the threshold, registration is voluntary, but you generally must stay registered for 12 months.
Can I register a business name Australia wide for free?
No. ASIC charges A$47 for one year or A$108 for three years from 1 July 2026. A business name registration does not give you ownership of the name. If you trade under your own name, you do not need to register one.
How long does it take to start a business in Australia?
An ABN can be issued immediately if your application is complete, and ASIC says a business name takes effect once payment clears, which can take up to 24 hours. Reviews of ABN applications can take 20 business days. Allow longer for a company, licences and insurance.
This guide is general information, not legal or financial advice, so confirm current fees, thresholds and rules with the Australian Business Register, ASIC, the ATO or your adviser before acting.
The Short Version
- Choose a structure first: sole trader is simplest, a company limits liability but costs more to run.
- The ABN is free through the Australian Business Register, so avoid paying for it unless you want an agent’s help.
- Register a business name with ASIC if you trade under anything other than your own name: A$47 for one year or A$108 for three from 1 July 2026.
- Register for GST within 21 days of reaching A$75,000 turnover, or immediately if you provide taxi or ride-sourcing services.
- If you hire, register for PAYG withholding and plan for 12% super paid with each payday under Payday Super.
- Check industry licences on ABLIS, arrange insurance, and keep your details up to date with the ATO.
