How Much Does It Cost to Start a Business in Australia?

Starting a Business in Australia: What Will It Actually Cost You?

The dream of running your own business is one thing. The spreadsheet behind it is another. Before you hand in your resignation or order business cards, it pays to map every cost — because most new business owners underestimate their startup spend by 30–50%.

This guide walks through the real cost categories for launching a small business in Australia, from government registration fees to your first month of operating expenses.

Government and Legal Costs

The good news: the bare minimum is surprisingly cheap in Australia.

• ABN registration: Free via the Australian Business Register. Takes about 20 minutes.
• Business name registration (ASIC): $44 for 1 year, $102 for 3 years.
• Company registration (Pty Ltd): $576 via ASIC if you want a separate legal entity. Sole trader structure costs nothing beyond your ABN.
• GST registration: Free, but mandatory once your projected annual turnover hits $75,000. Use the GST Calculator to model the impact on your pricing.
• Licences and permits: Varies wildly by industry and state. Food businesses, tradespeople, and health practitioners all face different requirements. Budget $200–$1,500 and check your state government's business licence finder.
• Legal fees: A basic partnership agreement or contractor template from a lawyer starts around $500–$1,500. Many sole traders skip this initially — it's a calculated risk.

Setup and Equipment Costs

This is where spend diverges dramatically depending on your business type.

• Home-based service business: $500–$3,000 (laptop, software, printer, dedicated phone line)
• Retail or food business: $20,000–$100,000+ (fit-out, point-of-sale, stock, signage)
• Trade or construction: $5,000–$50,000 (tools, vehicle, safety gear)
• Online business: $1,000–$10,000 (website, ecommerce platform, inventory if product-based)

A useful benchmark: most ASIC research suggests the median small business launch costs somewhere between $3,000 and $15,000 all-in before the first dollar of revenue arrives.

Technology and Software

Monthly subscriptions add up fast. Common line items include:

• Accounting software (Xero, MYOB, QuickBooks): $30–$80/month
• Website hosting: $10–$50/month
• Email and productivity suite: $12–$25/user/month
• Point-of-sale or booking system: $30–$150/month
• Payment processing (Square, Stripe): 1.4–1.7% per transaction

Budget at least $200–$400/month in SaaS costs once you're operational.

Insurance

Insurance is non-negotiable for most businesses. Key types and rough annual costs:

• Public liability (essential): $500–$1,500/year
• Professional indemnity (for advice-based businesses): $600–$2,000/year
• Workers' compensation: Mandatory if you employ staff — cost depends on payroll and industry
• Business interruption and property: $400–$2,000/year depending on assets

Marketing and Branding

You can launch lean, but you need some investment in being findable:

• Logo and brand design: $300–$3,000 (freelancer vs agency)
• Website build: $500 (DIY template) to $8,000+ (custom)
• Google Ads or Facebook Ads launch budget: $500–$2,000 for initial testing
• Printed materials (cards, flyers): $100–$500

Working Capital — The Hidden Killer

Many businesses fail not because the idea was bad but because they ran out of cash waiting for revenue to arrive. You need a buffer for:

• Rent and utilities (if applicable): 3 months prepaid
• Your own living costs while revenue is growing
• Inventory or supplies ahead of your first sales
• Tax obligations (GST, PAYG instalments)

A rule of thumb: set aside 3–6 months of operating costs as working capital before you launch. Use the Budget Planner to calculate what that number looks like for your specific situation.

Viability Check Before You Spend

Before committing capital, run a business viability check. The Business Viability Calculator lets you input your revenue assumptions and cost structure to see whether you have a realistic path to profit — and how long it will take to recoup your startup investment.

Smart founders also keep a copy of a solid small business guide on their desk. The numbers change, but the principles don't.

Total Startup Cost Summary

The variance is enormous because business type drives everything. A freelance graphic designer and a cafe owner live in completely different financial universes. Know your category before you commit.