Prepare for your first trading day
In short
Start by deciding which jobs you will offer, where you will work and what it costs to deliver them. Choose your business structure, apply for an Australian Business Number (ABN) if eligible, and complete the registrations, licences and insurance required for your work. Set up tax records and written quotes before approaching customers. Trade licensing, residential contract rules and some insurance requirements vary by state or territory and job type; an ABN alone does not authorise trade work.
Step 1
Define the work and check the numbers
Write a short service list based on work you are qualified and equipped to deliver. Choose an initial service area and customer type, such as household maintenance or subcontract work for builders. Ask potential customers what jobs they struggle to arrange and check how local businesses describe their services.
Budget for tools, vehicle costs, licences, insurance and software, then forecast money coming in and payments going out. Allow for quoting, travel, administration, callbacks and days you cannot bill. A full diary can still leave a cash shortfall if materials are paid for before customers pay you.
Your first decisions
| Decision | Write down before spending |
|---|---|
| Services | The jobs you will accept, their limits and work you will refer elsewhere. |
| Service area | Suburbs you can reach within a travel cost you have allowed for. |
| Start-up funds | Essential purchases and enough cash for expenses before invoices are paid. |
| Pricing | Labour, materials, overheads and margin for a typical job. |
| First customers | People or businesses to approach and one way to record enquiries and results. |
Step 2
Choose a structure and register the business
A sole trader is personally responsible for the business. A company is a separate legal entity with its own obligations. Partnerships and trusts have different arrangements again. Choose with an accountant or business adviser if liability, shared ownership or tax treatment could change your decision.
Check your ABN eligibility and apply through the government service; an ABN application is free. Register a business name if you trade under a name that requires registration, rather than assuming your website or social account secures it. If you choose a company, complete company registration and check director ID requirements. Keep the legal contracting entity consistent across your registrations, licences, insurance and quotes.
Step 3
Confirm licences and cover for the actual work
Search the Australian Business Licence and Information Service (ABLIS) using your activities and location. Follow its links to the responsible authorities and confirm the licence class, conditions and contracting entity. Check approvals for your premises and relevant site safety requirements too. A qualification or worker licence may not permit your business to advertise or contract directly for that work.
Queensland example: QBCC distinguishes licence class, which covers the work, from licence type, which covers your role. New South Wales example: contractor licences, qualified supervisor certificates and tradesperson certificates give different permissions. Use the regulator for each place you intend to work; these examples are not national rules.
Discuss public liability, tools, vehicle use and personal income risks with an authorised insurer or broker. Check the insured business name, activities, exclusions and policy dates. If you hire workers or engage contractors, check your state or territory workers compensation rules. Residential building insurance schemes may also apply to particular jobs; public liability is not a substitute for checking those obligations.
Step 4
Set up tax and records before the first invoice
Goods and services tax (GST) registration is generally required when your GST turnover reaches $75,000 or you expect it to reach that threshold. Turnover is not profit, and the test includes current and projected turnover over 12 months. Check the ATO rules and registration timing with your tax agent. If you are not GST registered, do not add GST to your prices.
Use a bookkeeping system from day one. Save purchase receipts, invoices, payments and records supporting deductions; also keep accepted quotes, approved changes and job completion documents. Tax records generally need to be kept for five years, with some retained longer. Agree a retention process with your accountant rather than deleting everything on its fifth anniversary.
Step 5
Prepare a quote and a first-customer routine
Create a written quote with business and customer details, a clear scope, inclusions, exclusions, itemised costs, total price and GST where applicable. State timing, payment terms, expiry and how the customer accepts it. An accepted quote can create contractual obligations. Check your state or territory rules for residential contracts, deposits, required insurance and changes before using a generic template.
For example, a painting quote should identify the rooms and surfaces, preparation, paint specification, coats and whether ceilings, trims, furniture moving and waste removal are included. Record extra work and its price for approval before proceeding. This lets you compare the job's actual costs with the assumptions behind your quote.
Prepare photos you have permission to use, a clear service description and contact details. Approach existing contacts and relevant local businesses, record each enquiry source and follow up on agreed next steps.
Sources and useful links
Sources checked 6 October 2026
- business.gov.au: guide to starting a business
National setup sequence, planning, registrations and hiring checks; not a substitute for trade-specific approvals.
- business.gov.au: business structures
Differences between sole traders, companies, partnerships and trusts.
- business.gov.au: register for an ABN
Eligibility and free government applications.
- ABLIS: business licences and permits
Location and activity search connecting businesses with relevant federal, state, territory and local authorities.
- QBCC: when you need a licence
Queensland building work only; check the appropriate regulator for other work, including electrical contracting.
- NSW Government: new trade or building licences
NSW distinctions between contractor, supervisor and tradesperson credentials.
- business.gov.au: types of business insurance
Insurance categories and links to every state and territory workers compensation regulator; cover depends on the policy and business.
- ATO: registering for GST
Current and projected GST turnover tests and registration obligations.
- business.gov.au: GST registration
GST threshold and whether to include GST in prices.
- ATO: record keeping for business
Record retention rules and records requiring more than five years.
- business.gov.au: prepare quotes
Written quote contents and the effect of customer acceptance; local building contract rules also need checking.
