Complete Checklist: Starting a Trade Business in Australia

The Opportunity: Why Now is a Great Time

Australia's construction and home services sector is booming. Skilled tradies are in high demand, with median earnings of $70K-$120K for employees and $150K+ for successful business owners.

But starting a trade business in Australia requires navigating ABNs, state-based licensing, insurance, safety compliance, and tax obligations. This guide covers everything.

Phase 1: Legal Structure & Registration (Weeks 1-4)

1. Choose Your Business Structure

Structure	Best For	Cost to Setup	Tax Rate
Sole Trader	Solo tradies	$0	Personal tax rate
Partnership	2+ partners	$0-$500	Personal tax rate
Company (Pty Ltd)	Growing businesses	$500-$1,500	25% flat rate
Trust	Asset protection	$1,000-$3,000	Variable

Most tradies start as sole traders - simple, cheap, easy to set up. Switch to a company later when you hire staff or want liability protection.

2. Get an ABN (Australian Business Number)

Free and easy via abr.gov.au. Takes 5 minutes. You need an ABN to:

Invoice customers
Register for GST
Claim business tax deductions
Hire employees

3. Register for GST

You must register for GST if your turnover is $75K+ per year. Most tradies hit this quickly, so register from day one.

GST = 10% added to your invoices. You collect it from customers and pay it to the ATO quarterly.

4. Register a Business Name (Optional)

If you want to trade under a name other than your personal name (e.g., "Smith Plumbing" instead of "John Smith"), register it via ASIC:

Cost: $44 for 1 year, $102 for 3 years
Renewal: Must renew to keep name

Phase 2: Licensing & Qualifications (Weeks 2-8)

Trade Licenses by State

Every state has different licensing requirements. Here's what you need:

State-Based Licensing Bodies:

NSW: NSW Fair Trading
VIC: Victorian Building Authority (VBA)
QLD: Queensland Building and Construction Commission (QBCC)
WA: Building and Energy Division
SA: Consumer and Business Services (CBS)
TAS: Consumer, Building and Occupational Services
ACT: Access Canberra
NT: Building Advisory Services

Common Trade Licenses

Plumbers:

Plumbing license (journeyman or endorsement holder)
Backflow prevention certification
Gas fitting license (if working with gas)

Electricians (Sparkies):

Electrical license (A-Grade, B-Grade, or Restricted license)
Must be registered with state electrical safety regulator
Continuing professional development (CPD) hours annually

Air Conditioning & Refrigeration:

ARCtick license (refrigerant handling)
Electrical license for wiring work
CPD hours for ARCtick renewal

Builders & Roofers:

Builder's license (varies by project value - check your state)
Working at Heights certification

Essential Safety Certifications

White Card (Construction Induction)

$60-$150

Required to work on any construction site in Australia. 1-day course or online. Valid for life.

Working at Heights

$150-$300

Required if working above 2 meters (roofers, gutter cleaners, solar installers). Valid 2 years.

First Aid Certificate

$120-$180

Not legally required but highly recommended. Valid 3 years.

Asbestos Awareness

$50-$100

Required if you may encounter asbestos (pre-1990 buildings). Online course available.

Phase 3: Insurance & Compliance (Weeks 4-8)

Essential Insurance

1. Public Liability Insurance

Covers property damage or injury to third parties. Minimum $10M coverage recommended.

Cost: $600-$2,000/year depending on trade and coverage.

2. WorkCover Insurance

Required in most states if you hire employees. Covers workplace injuries.

Cost: Varies by state and industry risk rating (typically 2-8% of wages).

3. Tools & Equipment Insurance

Covers theft, damage, loss of tools and equipment. Essential if you have $15K+ in tools.

Cost: $400-$1,200/year.

4. Motor Vehicle Insurance

Commercial vehicle insurance for your ute/van. Personal car insurance won't cover business use.

Cost: $1,500-$3,500/year.

5. Income Protection Insurance (Optional)

Pays you if you're injured and can't work. Smart for sole traders.

Cost: $800-$2,500/year.

Phase 4: Financial Setup (Weeks 6-10)

1. Business Bank Account

Open a separate business account. Don't mix personal and business finances. Popular options:

Commonwealth Bank Business Account
NAB Business Account
ANZ Business Account
Westpac Business Account

2. Accounting Software

Xero: $35-$70/month - popular in Australia
MYOB: $27-$70/month - established AU platform
QuickBooks: $25-$60/month - good for beginners

3. Hire an Accountant

Worth every cent. An accountant will:

Lodge your BAS (quarterly GST returns)
Prepare your annual tax return
Advise on tax deductions
Keep you compliant

Cost: $1,500-$3,500/year for basic bookkeeping + tax return.

4. Pricing Your Services

Average tradie rates in Australia (2026):

Plumber: $90-$150/hour
Electrician: $85-$140/hour
HVAC Tech: $95-$160/hour
Roofer: $70-$120/hour
Painter: $50-$90/hour
Handyman: $60-$100/hour

Add callout fee ($80-$150) for small jobs.

Phase 5: Operational Setup (Weeks 8-12)

1. Get a Work Vehicle

Buy a reliable ute or van. Popular choices:

Toyota HiLux ($25K-$60K used/new)
Ford Ranger ($28K-$65K)
Isuzu D-Max ($22K-$55K)
Toyota HiAce van ($20K-$50K)

2. Tools & Equipment

Budget $10K-$40K depending on your trade. Buy quality - cheap tools break.

3. Trade Accounts

Open accounts with suppliers for better pricing and payment terms (net 30 days):

Bunnings Trade
Reece Plumbing
Tradelink
Mitre 10 Trade

Phase 6: Marketing & Customer Acquisition (Weeks 10-14)

1. Professional Website

Essential. 85% of Australians check your website before calling. You need:

Service list with pricing (at least ranges)
Service areas clearly listed
Online booking or quote form
Customer reviews/testimonials
Click-to-call phone number
Mobile-friendly design

2. Google Business Profile

Claim and optimize your profile:

Complete all fields
Add high-quality photos
Post weekly updates
Collect and respond to reviews

3. Get Your First Customers

Friends & family: Offer discounted rates for reviews
Letterbox drops: Target new estates and older suburbs
Facebook local groups: Join and help people (don't spam)
Airtasker: Get reviews and experience (but rates are low)
Google Local Services Ads: Pay-per-lead, effective
Service Seeking / hipages: Pay-per-lead (expensive but works)

4. Build Your Reputation

Get 30-50 five-star Google reviews in your first year:

Ask every happy customer
Send them a direct link via SMS
Respond to all reviews

Startup Costs Breakdown

Estimated Startup Costs (Sole Trader):

Work vehicle (used ute): $15,000-$35,000
Tools & equipment: $8,000-$25,000
Licensing & certifications: $500-$2,000
Insurance (first year): $2,500-$6,000
Marketing (6 months): $2,000-$5,000
Accounting setup & software: $1,000-$2,000
Working capital: $5,000-$10,000
Total: $34,000-$85,000

Common Mistakes to Avoid

❌ Not registering for GST (you'll owe it later)
❌ Working without the right licenses (huge fines + legal issues)
❌ No public liability insurance (one accident = bankruptcy)
❌ Mixing personal and business money (tax nightmare)
❌ Not keeping receipts (miss deductions worth $5K-$15K/year)
❌ Underpricing to "get work" (you'll burn out and go broke)
❌ Not having written quotes/contracts (disputes cost time and money)

Launch Your Tradie Business Properly

ServiceROI gives you everything: professional website, Google Business management, online booking, CRM, and marketing - all built specifically for Australian tradies.

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Resources

business.gov.au: Starting a business guide
ato.gov.au: ABN, GST, tax info
fairwork.gov.au: Hiring employees, pay rates
Your state licensing body: License requirements

Final Thoughts

Starting a tradie business in Australia is one of the best career moves you can make - if you do it properly. Don't skip the licensing, insurance, or compliance steps. They protect you and your family.

Follow this checklist, get proper advice from an accountant, and you'll build a successful business that lasts decades.