Introduction: Starting Your Australian Business
Australia supports small business with tax incentives, funding programs, and support services. 2.3 million small businesses operate in Australia. This guide covers legal setup, funding, tax obligations, and practical startup steps.
Business Structure Options
Sole Trader: Simplest, personal liability, tax as income. Partnership: Multiple owners, shared liability. Pty Ltd Company: Limited liability, more complex, professional. Trust: Complex structure, estate planning benefits.
Registration Requirements
- Business Name: Register with state registry ($50-200)
- ABN (Australian Business Number): Free, takes 20 minutes online
- TFN (Tax File Number): Register with ATO
- GST Registration: Required if turnover over $75,000
- Insurance: Public liability ($500-1,500 annually typical)
Funding Options
Personal savings most common. Bank loans require business plan, security. Government grants (business.gov.au) for certain industries. Crowdfunding platforms (Equitise, Pozible) alternative. Angel investors/VC for growth-stage businesses. Typical startup costs: $10,000-50,000 depending on business.
Tax Obligations
Quarterly GST returns if registered. Annual income tax return. Deductible expenses reduce taxable income. Keep records for 5 years minimum. Tax rates: 21.5% corporate (for companies), variable for sole traders based on income.
Getting Started: Action Plan
- Market research: validate business idea
- Business plan: strategy document, financial projections
- Register: business name, ABN, structure
- Insurance: minimum public liability
- Banking: separate business account
- Tax setup: register with ATO, GST
- Marketing: build website, social media
- Launch: start operations
Support Services
Australian Small Business Loans Council, SCORE mentoring (free), Business Victoria assistance, Australian Securities Exchange resources. Free webinars and workshops regularly available.