How to register a small online business in Australia: beginner checklist

By FastBuySale Newsroom · 9 Nov 2026 · 11m ago

Starting an online business in Australia

Selling handmade goods, offering freelance services, running an online store or creating digital products are popular ways to start a small business in Australia. The registration steps are straightforward and mostly online, but beginners often wonder which ones apply to them and in what order. This checklist explains each step in plain language. It is general information, not legal or tax advice, and thresholds and fees change, so check official government sources before acting.

Checklist 1: decide if you are in business

A hobby is generally done for pleasure, while a business is carried on with the intention of making a profit, on a regular and organised basis. Factors include whether you intend to profit, how often you sell, whether you operate in a businesslike way and the size of the activity. If you are carrying on a business, you are entitled to an ABN and must report business income. If it is a hobby, income is generally not taxable, but the line is not always clear.

Checklist 2: choose a business structure

The main options are sole trader, partnership, company and trust. A sole trader is the simplest and cheapest, using your individual tax file number, with business income reported on your personal return. You are personally responsible for debts. A company is a separate legal entity with its own tax obligations and director duties, costing more to set up and run but limiting personal liability in many cases. Many small online businesses start as sole traders and change structure later.

Checklist 3: apply for an ABN

An Australian Business Number identifies your business to government and other businesses. Apply online through the official business register for free. You will need your tax file number and details of your business activity. Many marketplaces and payment platforms ask for an ABN, and businesses paying you may withhold tax if you do not provide one.

Checklist 4: register a business name

If you trade under a name other than your own, such as a shop name, you generally need to register it with the corporate regulator. Registration is for one or three years and carries a fee. A registered business name does not give you exclusive rights; trade mark registration is separate. Check availability first.

Checklist 5: consider a trade mark

If your brand is important, search the trade marks register and consider applying for a trade mark to protect it. This is separate from a business name or domain.

Checklist 6: decide on GST

GST registration is compulsory once your GST turnover reaches 75,000 dollars in a 12-month period, or is expected to. Below that, registration is optional. Registered businesses charge 10 percent GST on most sales, claim GST credits on business purchases and lodge activity statements.

Worked example: approaching the GST threshold

Mia sells prints online. Her turnover over the past 12 months is 62,000 dollars, growing by about 2,000 dollars a month. In seven months, her rolling turnover would reach about 76,000 dollars, passing the 75,000 dollar threshold. She plans to register before then, and adjusts prices so a print she sells for 55 dollars including GST gives her 50 dollars after remitting 5 dollars of GST. The percentage calculator on this site helps check GST amounts.

Checklist 7: set up tax records

Keep records of income and expenses for five years. Use accounting software or a spreadsheet, keep receipts and separate business and personal accounts. Sole traders may need to pay tax instalments once income grows.

Checklist 8: register a domain

Australian domain names ending in .au may require an Australian connection, such as an ABN. Choose a name that matches your brand and register it through an accredited registrar.

Checklist 9: follow consumer law

The Australian Consumer Law applies to online sellers. Customers have automatic rights to a repair, replacement or refund when goods have a major problem, and you cannot exclude these guarantees. Advertising must be honest, prices must be clear including any compulsory fees, and you must not make false claims.

Checklist 10: privacy

Small businesses with annual turnover under 3 million dollars are generally exempt from the federal privacy principles, but some activities remove the exemption. Treat customer data carefully anyway and publish a privacy policy.

Checklist 11: payments and banking

Open a business bank account and set up payment processing. Check fees for each payment method and marketplace.

Checklist 12: insurance

Consider public liability and product liability insurance if you sell physical goods, and professional indemnity for services.

Checklist 13: licences and permits

Some activities need licences, such as selling food, cosmetics, alcohol or certain regulated goods. Local councils may have rules for home-based businesses.

Checklist 14: selling on marketplaces

If you sell through online marketplaces or craft platforms, read their seller terms, fees and payout schedules. Many ask for your ABN and may display business details to customers. Marketplaces may collect GST on some sales in certain situations, such as imported low-value goods, so check how GST works for your sales channel. Keep separate records for each platform, because fees and refunds differ, and download statements regularly so you can reconcile them with your bank account.

Checklist 15: shipping and returns policies

Publish clear shipping times, costs and return policies on your site. Your policy cannot remove customers' consumer guarantee rights, but you can set rules for change-of-mind returns, such as a time limit or condition requirements. Use tracked postage for valuable items and keep proof of delivery. Clear policies reduce disputes and chargebacks.

Checklist 16: superannuation and employing help

If you hire staff, you may need to register for pay as you go withholding, pay superannuation guarantee contributions and meet employment obligations, including workers' compensation insurance. Sole traders are not required to pay super for themselves, but many choose to make voluntary contributions to save for retirement.

Checklist 17: plan your tax

Sole traders pay income tax on business profit at individual rates, through their personal tax return. Set aside part of every payment for tax, especially in your first year, when no tax instalments have been withheld. Once you lodge a return showing business income, you may be placed into the pay as you go instalments system, paying tax quarterly in advance. Claim legitimate business expenses, such as equipment, software, packaging, postage and a share of home office costs where eligible, and keep records to support each claim.

Checklist 18: keep registrations up to date

Update your ABN details when your address, activity or structure changes, renew your business name before it expires and cancel registrations if you close the business. Out-of-date details can cause problems with marketplaces, banks and tax obligations.

Getting help

Free and low-cost support is available through government business advisory services, small business commissioners in each state and territory, and industry associations. A registered tax agent or accountant can help with structure decisions, GST and tax returns.

Checklist 19: write simple terms of sale

Terms of sale explain how orders are accepted, payment, delivery, cancellations, returns and how you handle problems. Keep them clear and consistent with the Australian Consumer Law. Templates from reputable sources can help, but tailor them to your business rather than copying another seller's terms word for word.

Checklist 20: protect your online accounts

Your business depends on email, marketplace, payment and website accounts. Use strong, unique passwords, turn on multi-factor authentication and limit who has access. Compromised accounts can lead to fraudulent orders, stolen payouts or a damaged reputation.

Checklist 21: review the business each year

Once a year, review your structure, turnover, GST status, insurance cover and registrations. As the business grows, a company structure or extra cover may become worthwhile, and an accountant can help you weigh the costs and benefits.

Checklist 22: know your state and territory rules

Some obligations are set by states, territories or local councils rather than federally, such as certain trading licences, food business registration and home business zoning. Check the rules where you operate before launching.

Scams to avoid

Scammers send fake renewal notices for business names or domains, and some websites charge large fees for free ABN applications. Use official government services and check invoices carefully.

Reader questions

Questions about starting a business? Send them through the Ask page on this site.

Disclaimer

This article is for general information only and is not legal or tax advice. Rules change; check official sources.

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