Key Points
- Business can be operated as a sole trader, company, or partnership.
- You won't need to register for GST until you hit $75,000 in revenue.
- Australia provides various financing options to aspiring entrepreneurs, which include grants, loans, and private investors.
The vibrant economy of Australia and the supportive business environment offer a fantastic backdrop for entrepreneurs.
Starting a small business here can be rewarding, whether you have a unique idea or a passion for turning it into a profit.
Nadine Connell, the Director of a, believes that Australia is one of the most accessible places in the world to do business. There is a simple 10 per cent Goods and Services Tax (GST) system with competitive tax rates, and the setup is straightforward.
There's a lot of government incentives out there through grants. I think there's more than 70 billion offered Australia-wide, and there are really clear regulations and allowances for you to be innovative.Nadine Connell
From his side, Abdalla Abdallah, an economics analyst based in Sydney, says Australia has a stable economy, a cornerstone for any investor and entrepreneur.
"Our economy grows steadily, except for a small period during COVID, where we saw some recession. However, in the past three decades or so, we've been growing steadily. So, this is an indication, of course," Mr Abdallah explains.
According to Mr Abdallah, Australia offers a solid legal framework that protects business owners, investors, and entrepreneurs. This includes safeguarding property rights, intellectual property, and a fair rule of law that governs all.
"The legal system is transparent. And most importantly, the level of corruption in Australia is low," Mr Abdallah says.
Economics Analyst Abdallah Abdallah
Business Types
Before you dive into your business planning, it's crucial to understand the business structures in Australia.
You can operate your business as a sole trader, company, or partnership.
Mr Abdallah says each business type has a different way of operating, depending on your business aspirations.
Suppose you want to run a small business offering services in your local region or suburbs without any growth plans. In that case, you may consider operating as a sole trader or partnership.
But, if you aspire to grow the company as a brand itself, to create value in this brand, and later sell it or sell part of it, in this case, Mr Abdallah advises that a company would be better.
"We have seen many companies that started very small in garages, and now their brand is worth multi-billion dollars," Mr Abdallah says.
Once you've chosen your business structure, you must register your business and ensure compliance with local laws and regulations. Ms Connell says It's a manageable process, and plenty of resources are available to guide you.
Most information needed to register as a sole trader and obtain an Australian Business Number (ABN) is available on your state's government website.
Businesses of all types and structures must register for GST if their turnover exceeds $75,000 in revenue.
If you need financial support to start your business, Australia offers many outlets that you can reach out to. Credit: SolStock/Getty Images
"For companies, we have to register a separate Tax File Number (TFN). Remember, for sole traders, the business is linked to their own ; there is no differentiation. But companies have to have its own TFN," he says.
Ms Connell explains that entrepreneurs should know other legal and compliance requirements to avoid potential pitfalls, like setting up insurance policies.
"There's general business insurance, there's professional indemnity insurance if you're providing a service. If you're part of that business, you've got product insurance and food handling compliance."
She says it depends on the type of business you're operating. You may need public liability insurance if you have people entering your business.
Business planning
Another aspect you should consider is a well-crafted business plan, which many view as a roadmap to success.
Ms Connell says researching your market, knowing who your customers are, and how big your market is are the first steps.
"Who are your competitors? What you're going to be selling, your price, your products. So, if you can be very clear on those components, then you can position your product or service in the market in the best possible way," Ms Connell adds.
Business can be operated as a sole trader, company, or partnership. Credit: Superb Images/Getty Images
Financial Support
If you need financial support to start your business, Australia offers many outlets that you can reach out to. Ms Connell shares her insights on the various financing options available to potential entrepreneurs, including grants, loans, and private investors.
"There's a lot of grants out there. There are more than 70 billion that the government, in terms of state and local council, have available. There're private investors as well. That comes down to whether you've got somebody you know personally looking to invest in your business, or you can offer equity as well," she says.
Ms Connell also states that hundreds of grants are listed on the Australian government website, , through the grants and the program finder tab, which are dedicated to various industries.
"People can search through those, but they also have state governments. All the state government websites have their grants listed online as well. And then the local council in your local LGA often has grants as well," she adds.
You can reach out to your state department for more information. Australia offers a wealth of resources and government support for entrepreneurs. For example, guides can guide potential entrepreneurs throughout the business start-up journey.
Nadine Connell - Director of Smart Business Plans Australia
Our business concierge service provides help for businesses finding information on financial assistance available for start-up businesses across different areas of government and connects them with grants and rebates that are available to them.Cassandra Gibbens
She adds that each business concierge will talk to their customer and work out what might be available to them case by case and based on their circumstances.
"They will be able to identify the supports available in different industry groups and connect start-ups with these opportunities. The Business Concierge can also connect business start-ups with an independent advisor. Who can provide information on everything they need to start a business, including advice on how to access finance," Ms Gibbens explains.
