Browse Day: January 28, 2019

Starting A Small Business In Australia – A Complete Guide

Are you thinking of starting a small business in Australia? This article will lay out all the steps that you need to take to make your dream of building your own business and working for yourself a reality. It doesn’t matter what kind of business you are looking into or whether you have an idea or not, this article will give you all you need to know when thinking of starting a small business in Australia.

If you are living in Australia and thinking of starting a small business in Australia then you are in luck because there is a program that is run by Employment Options called the New Enterprise Incentive Scheme (NEIS) which will provide all the training and funding that you need to get your small business Idea off the ground and running successfully. This program is especially good for you if you have no idea of how to start a small business at all.

If you have a great idea, and perhaps have recognised a need in the population and you believe you can develop a service or product that address this need then you should definitely follow this idea through to fruition. The best place for you to start if you are currently unemployed and need the funding, advice and training to get your business started than I would highly recommend you to go check out and search for the New Enterprise Incentive Scheme (NEIS). If you’re thinking of starting a small business in Australia this is the first place you should go to.

Alternatively, there is huge opportunity to start a home business online. The benefits of starting a small business in Australia online are that it gives you huge flexibility in how you’d like to run your business. Opposite to starting a traditional brick and mortar offline business, online business have huge advantages in that you don’t need a lot of money to start.

With an online business can save a lot of money and headaches as there is no need for you to set up shop, storefront or office space, you don’t even need staff. You may be worried about not having the skills and knowledge with the internet and the whole concept is completely daunting to you, then you don’t have to worry, as with everything, there is a learning curve.

So why should you look to the internet when starting a small business in Australia? It’s simple, I will detail some of the benefits of having an online business as oppose to an offline business.

You don’t need to set up a physical shop, storefront, or office space, which means no leasing and renting fees

The target audience or customers you may cater to is worldwide, and internationally allowing greater potential for profit

Low overheads costs, because you don’t even need to hire staff, no customer service, no direct 1 on 1 selling

You can work from home, at a library or anywhere you like allowing great flexibility for you to manage your time

The internet has become a central part of everybody’s lives, more and more people access the internet on a daily basis than ever before

Money transactions can be at an instant, online money transactions are now as easy as a push of a button, thousands and millions of people are now buying and selling online

There are no shipping, distribution, packaging or delivery services that you need to worry about, especially in the case where the product or service that you are providing is in a digital form such as e-books, mp3, audio, video and documents. Basically all forms of intellectual properties are now a value commodity in the online world and people can download them instantly to their computers no matter which part of the world they are form

You don’t even need to have your own products; there is a new system for companies to market their products. This is called affiliate marketing

You don’t need a sales team or marketing experience if you have your own products, you can literally have your own army of salesmen all for free and you don’t have to pay them anything unless they make a sale, this is simply a process called Affiliate Networks.

And finally the no.1 reason why you should start an online business is because the start-up cost can be as low as $0 to $12 for a domain name and $9 per month for a website hosting account.

Start a Small Business in Australia

There are many reasons to starting a business in Australia.  As long as you follow the rights steps for setting up your business, then you will set yourself up for success.  There are three main types of businesses you can start in Australia and certain benefits to each.  I have seen many new business fail miserably, and I have seen some start-up Aussie businesses become very successful.  The thing that the successful Australian businesses have in common is that the founders were passionate and, therefore, motivated.  Don’t start a business out of the sole desire to make money.  Donald Trump and Warren Buffet have both said do what you love and the money will follow.  If you love to cook, then open a restaurant.  If you’re a lawyer, then don’t open an online store.  Got it?  Get it?  Good!

First, think long and hard about what you love to do.  Later on you can figure out how to make money from the one thing you are truly passionate about.  If you’re an artist, then paint or practice whatever medium of self expression you love.  If you’re smart enough to follow your dreams, then you will be smart enough to figure out how to make money from it.

A good place start looking around for business ideas is in your own house.  Go ahead, look around the room you’re in and find an area that has a problem that needs to be fixed or causes irritation or frustration.  That unorganized stack of business cards in the corner, CD’s everywhere (itunes, ipod, etc.), dirty window, shelves that are too high, pile of laundry in the middle of the floor, etc.  Everything has potential for the next great thing.

Next, you will want to decide which type of business to open in Australia.  You can chose from sole trader, partnership, and company.  These are the three ways to start up a business in Australia and here are the tax benefits of each.

A sole trader is the least expensive and easiest business to start in Australia.  A “sole trader” status business is not a separate entity for tax purposes.  Therefore, you are taxed at the same rate as your personal income tax.  This may be good or bad, depending on how much you earn with your business.  In Australia the business tax is a flat rate of 30%, while personal income tax is a progressive rate system.  The highest rate for personal income tax in Australia is 45%.  If you would be in a higher tax bracket, then it makes sense to form your own company, but if you don’t plan on making much money the first year then register your business as a sole trader so you pay less taxes.

If you register as a company in Australia, then you have a completely separate entity that is able to acquire property, invest and pay taxes on its own.  Another huge benefit of registering a company is that it separates your personal assets from that of the company for liability reasons.  In other words, if you get sued they can’t get your personal house, car, or anything else that is under your name (as opposed to the company name).

You can also register a partnership in Australia with at least one other individual or company.  With this, the tax benefits can vary and you may end up splitting the taxes.  It all just depends on the individual situation.

Australia is one of the best countries in the world, according to the World Bank, for the total ease of doing business.  It is very easy to start a new business, hire employees, and quick to process paperwork and licenses.  These are all reasons Australia is a top destination for business excellence.

After you have your business idea, then you will need to register your business and get an ABN (Australian Business Number). Register the business on the state level.  Search Google for “your state” business registration.

Starting a Business in Australia

Starting a business in Australia is an undertaking that many ambitious entrepreneurs decide to have a go at these days. Due to this, starting a business in Australia is no longer a long and complicated process. There are several online companies that offer generic legal documents and same day issue of company registration (ACN) with the Australian Securities and Investments Commission (ASIC). In addition to this the Australian Taxation Office (ATO) have developed there own online application system where almost anyone can apply for an Australia Business Number (ABN), Tax File Number (TFN), or tax registrations such as GST.

Given this information you could be forgiven for thinking that starting a business in Australia could be quite easy, that’s because it is!! (The only hard thing about starting a business is getting your business to make money!) It just seems difficult because there are several different agencies or commissions that you need to deal with in order to setup your small business.

It when people get to this stage it all begins to seem a little hard and start to ask themselves.

Which agency do I need to apply to first?

What do I need from that agency?

Why do I need it in the first place?

How do I make an application??

After looking into this process it became obvious that the issue didn’t lie with the individual application processes at each professional agency. Most of the applications have detailed help with easy to interpret information throughout the process. The issue lied in tying all the applications together to construct a business. With that in mind below is the order, which any entrepreneur would need to follow when starting a business in Australia.


Company registration and attain CAN Number

2) ATO

Apply through the ABR website for the following

ABN Number

Tax File number

GST (Maybe)

PAYGW (Maybe)

3) Bank Accounts

You will need your ACN, ABN and TFN to be eligible to open a business bank account. By law all you need is a photocopy or printout of your ACN registration to open a bank account. However depending on the bank and how up to date they are its best just to take all three numbers in to avoid frustration and a second trip to the bank.

4) Insurance

Which insurances you need (if any) will be specific to your business. Some of the more common ones are public liability and workcover insurance.

5) Accounting Systems

Depending on the size of your business you may choose to use a bookkeeper or accountant to look after your books. There are also computer accounting software such as MYOB or Quickbooks that enable you to look after you own books as well as integrating the information with you financial professional as well.

Completing the above 5 steps should generally take you anywhere from a day to a week. The ASIC and ATO registrations should usually be completed within a day, the only thing that will potentially draw the process out to a week is, yep you guessed it, the banks.

The banks can be rather frustrating actually, as mentioned the bank should be happy with a photocopy of your ACN, but sometimes they may want to see the original along with your ABN number and Tax File Number.

I have started two companies and both occasions the bank has treated my case differently. I strongly believe that it just comes down to the individual who serves you on the day. If you are having trouble you can always try another bank!