Starting a business in Australia involves more paperwork than most people expect, but it's manageable if you tackle it in the right order. Here's a practical, step-by-step guide for anyone getting a new business off the ground in Perth.
What is the first step to starting a business in Australia?
Decide on your business structure before anything else. Whether you operate as a sole trader, partnership, company, or trust affects your personal liability, how profits are taxed, what registrations you'll need, and how much it costs to set up and maintain. Many new business owners default to sole trader because it's simplest, but that isn't always the right long-term choice, particularly if you expect to grow quickly or take on risk.
Do I need an ABN to start a business?
Almost certainly, yes. An Australian Business Number is required to invoice clients without tax being withheld, register for GST, and deal with the ATO generally. Applying is free through the Australian Business Register, and straightforward applications are often approved instantly online.
What about a business name?
If you plan to trade under a name other than your own legal name (for a sole trader) or your company's registered name, you'll also need to register a business name with ASIC, which is a separate step from getting your ABN.
When do I need to register for GST?
Registration becomes compulsory once your GST turnover reaches, or is expected to reach, $75,000 over a 12-month period ($150,000 for non-profit organisations). Many new businesses register voluntarily from day one even below this threshold, particularly if most of their customers are other GST-registered businesses, since it allows you to claim GST credits on your own purchases and setup costs.
What licences or permits might a new business need?
This varies enormously by industry. Food businesses need council health registration, tradespeople need the relevant state licensing for their trade, and some professions — from real estate to financial advice — require specific industry certification or membership. Checking with your local council and any relevant industry body before you sign a lease or start trading avoids expensive surprises down the track.
What other registrations should I consider?
Depending on your situation, you may also need to register for PAYG withholding if you'll have employees, workers' compensation insurance, and potentially payroll tax once your wage bill crosses your state's threshold. If you're planning to hire from the outset, it's worth understanding your Single Touch Payroll obligations before your first pay run rather than after.
Should I set up accounting software before I start trading?
Yes — set this up before your first sale or expense, not after. Cloud accounting software like Xero, connected to your business bank account from day one, means every transaction is captured and coded correctly as it happens. Businesses that wait months to set up proper bookkeeping usually end up paying more to have a bookkeeper reconstruct the period retrospectively, and often miss deductions along the way.
What's the most common mistake new business owners make?
Underestimating tax and GST obligations from turnover they didn't expect to reach so quickly, and not setting aside money for tax as they go. Opening a separate savings account and transferring a percentage of each sale for GST and income tax, from the very first invoice, is a simple habit that prevents a nasty surprise at your first BAS or tax return.
The Metier Group helps new Perth businesses get set up correctly from the outset — structure, registrations, and bookkeeping systems that scale with you. Learn more about our business services, or contact us before you take your first step.