Australia (AU)
Australia is the world's sixth-largest country by area and one of the most urbanised nations on Earth, with over 85% of its 27 million people living in coastal cities.
Capital: Canberra
Region: Oceania
Language: English
Currency: AUD ($)
Cost of living: Expensive (index 74)
Emergency: 000
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Business Setup
Start a business or go freelance in Australia.
🧑💻 Freelancer / Self-Employed Guide
Steps to register:
- 1 1. Decide your business structure — most sole traders and freelancers register as a Sole Trader (simplest). A Pty Ltd provides limited liability and can be tax-advantageous above ~$100,000 net profit.
- 2 2. Register for an ABN (Australian Business Number) at abr.business.gov.au — free, takes 20 minutes online. Your ABN is required on all invoices. You can apply with an Australian address and must be carrying on an enterprise.
- 3 3. Register a business name via ASIC (asic.gov.au) if trading under a name other than your own legal name — $42/year or $98/3 years. Your own name does not require registration.
- 4 4. Register for GST (Goods and Services Tax) if your annual turnover exceeds $75,000 — register at abr.business.gov.au or through myGov > ATO. Voluntary GST registration is allowed below $75,000.
- 5 5. Set up a separate business bank account — recommended for tax record-keeping and ATO compliance.
- 6 6. Lodge Business Activity Statements (BAS) — quarterly for most businesses. BAS reports GST collected and paid (if GST-registered) and PAYG instalments. Lodge via myGov > ATO or your accounting software.
- 7 7. Set up accounting software — Xero, MYOB, or QuickBooks are widely used in Australia. Keeps you compliant with ATO record-keeping requirements (5-year retention rule).
- 8 8. Pay yourself correctly — sole traders draw from business profits (not a salary). Pty Ltd directors can pay themselves a salary (requires PAYG withholding registration) or dividends.
- 9 9. File your annual income tax return by 31 October (self-lodgement) or 15 May of the following year (if using a registered tax agent).
- 10 10. Consider professional indemnity insurance, public liability insurance, and WorkCover/workers compensation if you employ staff.
Tax registration
Australian Taxation Office (ATO) — register via myGov or the ATO Business Portal (my.ato.gov.au). Register for: ABN (free), GST (if turnover >$75,000 or voluntary), PAYG withholding (if employing staff or paying yourself a salary). Tax File Number (TFN) for companies registered via ASIC.
VAT threshold
$75,000 annual turnover (GST-registered businesses charge 10% GST on most goods and services). $150,000 for non-profit organisations. Below $75,000, GST registration is voluntary.
Invoicing
Tax invoices for transactions over $82.50 (inc. GST) must include: your business name, ABN, date of issue, description of goods/services, total price including GST, GST amount shown separately (or statement that total includes GST). For invoices below $1,000, a simplified tax invoice is acceptable. Invoices under $82.50 do not require ABN or GST details.
Social security
Sole traders and company directors are not covered by the employer workers compensation scheme for their own injuries — consider personal accident or income protection insurance. If you employ staff, WorkCover (state-based) is mandatory. Superannuation: sole traders do not have mandatory super contributions for themselves, but it is strongly recommended. If you use contractors who are paid mainly for their labour, you may need to pay super for them (personal service income rules apply).
💡 Key compliance dates: 31 October — personal income tax return due (or 15 May with a tax agent). 28th of each month — quarterly BAS due (April, July, October, January). Payroll tax is state-based — thresholds vary: NSW $1.2M, VIC $700,000, QLD $1.3M, WA $1M, SA $1.5M, TAS $1.25M annual wages bill. ASIC Annual Review fee for Pty Ltd: $329/year (small proprietary company, 2025–26). Keep all business records for 5 years.
🏢 Business Structures
Sole Trader · Sole Trader (Sole Proprietorship)
Sole Trader
None
Min. capital
1–2 days (ABN online, immediate)
Setup time
Liability: Unlimited personal liability
Setup cost: Free (ABN registration is free). Business name registration: $42 (1 year) or $98 (3 years) via ASIC
Best for: Freelancers, contractors, tradespeople, small service businesses. Simplest structure — you and the business are the same legal entity.
Partnership · General Partnership
Partnership
None
Min. capital
1–2 weeks
Setup time
Liability: Unlimited joint and several personal liability for each partner
Setup cost: Low — partnership agreement recommended (from $500 with a lawyer). Business name registration: $42–$98
Best for: Small businesses with 2–20 partners. Common in professional services (medical, legal, accounting practices).
Pty Ltd · Proprietary Limited Company
Private Limited Company
None required by law (typically $1+ share capital)
Min. capital
1–5 business days (ASIC online registration)
Setup time
Liability: Limited to company assets — shareholders' personal assets protected
Setup cost: $611 ASIC registration fee (2025–26). Plus legal/accounting fees for constitution and shareholder agreements ($500–$3,000+)
Best for: Most serious businesses, professionals wanting asset protection, companies seeking investment or with employees. Most common structure for SMEs in Australia.
Trust · Discretionary (Family) Trust or Unit Trust
Trust
None (typically $10 settled on trust)
Min. capital
1–2 weeks
Setup time
Liability: Trustee has full legal responsibility — limited if trustee is a Pty Ltd company
Setup cost: $500–$2,000 (trust deed preparation by lawyer or accountant)
Best for: Family businesses and investors wanting tax flexibility (income can be distributed to beneficiaries in lower tax brackets). Common in small business and property investment.
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