Starting a Tradie Business in Australia — The Complete 2026 Setup Guide

Starting your own tradie business is the best financial decision many tradespeople ever make. You control your income, your schedule and your future. But getting the setup right from day one avoids expensive mistakes later. This guide covers every step.

Step 1: Choose Your Business Structure

Most tradies start as a sole trader — it's the simplest and cheapest way to operate. You register an ABN, lodge one tax return each year, and all the income is yours (after tax). Your personal assets are legally at risk, but this is managed through good insurance.

A company (Pty Ltd) creates a separate legal entity with stronger asset protection and potentially lower tax on profits above ~$100,000. The setup and ongoing admin cost is higher. Most tradies don't need a company until they're well-established and profitable.

Talk to an accountant before you start if you're unsure — the setup cost is worth it for the right advice from day one.

Step 2: Register Your ABN

Apply free at abr.gov.au. Takes 15 minutes. You'll need your tax file number and a choice of business structure. Your ABN is typically issued within a few business days and allows you to legally invoice clients and register for GST.

Choose a business name at the same time if you want to trade under a name other than your own (e.g. "Smith Electrical" instead of "John Smith"). Register it at asic.gov.au for $42/year.

Step 3: Get Your Licences and Insurance

Check your state licensing authority for trade-specific requirements — most trades require a contractor licence separate from your trade qualification.

For insurance, get public liability cover before your first job — most clients and builders require it. Compare tradie insurance options here →. BizCover lets you get covered and download your certificate in under 10 minutes.

Step 4: Open a Business Bank Account

This is non-negotiable. Open a separate account for business income and expenses. Mixing personal and business money makes tax time painful and creates ATO audit risks. Free options include Zeller, Up Business and some big-bank basic business accounts.

Step 5: Set Up Accounting Software

You need software to invoice clients, track expenses, and prepare your BAS quarterly. Good options for tradies:

• Rounded — from $15/month, built for sole traders, includes BAS prep
• Xero — from $35/month, most popular in Australia, works with most accountants
• ServiceM8 — from $29/month, job management + invoicing, integrates with Xero

Step 6: Register for GST (If Needed)

Register for GST when your annual turnover exceeds $75,000 — or immediately if you expect to hit that within 12 months. Add 10% GST to every invoice and set it aside. Lodge your BAS quarterly and claim back GST on your business purchases.

Step 7: Set Your Rates

Don't undersell yourself. As a business owner you now pay for your own super, insurance, vehicle, tools, slow periods and sick days. Your rate needs to cover all of this.

A rough guide: take your target annual income, add 30–40% for business costs and taxes, then divide by realistic billable hours (1,000–1,200 for most sole traders). That's your minimum hourly rate. Research what other tradespeople in your area are charging and don't race to the bottom.

Step 8: Get Your First Clients

Your network is your most valuable asset when starting out:

• Tell every builder, contractor and supplier you've ever worked with that you're out on your own
• Set up a free Google Business Profile — it's the fastest way to appear in local search results
• List on Hipages, Airtasker and ServiceSeeking for residential work
• Ask your first satisfied clients for a Google review — five reviews puts you ahead of 90% of local competitors