Small Business Compliance in Australia
Australian small business compliance requirements come from three levels of government: federal, state/territory, and local council. This guide covers the key requirements at each level and highlights state-specific differences.
Federal Requirements (All States)
These apply to every Australian business regardless of location.
- ABN registration - Required for all businesses. Free to register at abr.gov.au.
- GST registration - Mandatory once annual turnover exceeds $75,000 AUD ($150,000 for non-profit). Optional below that.
- Income tax - All businesses must lodge an annual tax return.
- PAYG withholding - Required if you employ staff.
- Superannuation - Must pay 11.5% super for employees earning over $450/month (2025-26 rate).
- Fair Work - Must comply with National Employment Standards if hiring.
- Privacy Act - Applies to businesses with turnover over $3 million, plus health service providers and businesses that trade in personal information.
- Australian Consumer Law - Automatic guarantees on goods and services. Cannot be contracted out of.
- Record keeping - Must keep business records for 5 years (ATO requirement).
State and Territory Requirements
Each state has its own licensing body, workers compensation scheme, and industry-specific requirements.
New South Wales (NSW)
- Licensing body: NSW Fair Trading and Service NSW
- Workers comp: icare (mandatory if you employ anyone)
- Key licences: Builders (over $5,000 work), electricians, plumbers, real estate agents, motor dealers, security
- Payroll tax: 5.45% on wages above $1.2M annual threshold
- Check your requirements: service.nsw.gov.au
Victoria (VIC)
- Licensing body: Consumer Affairs Victoria and Business Victoria
- Workers comp: WorkSafe Victoria (mandatory)
- Key licences: Builders (over $16,000 work), electricians, plumbers, conveyancers, real estate agents
- Payroll tax: 4.85% on wages above $900K annual threshold
- Check your requirements: business.vic.gov.au
Queensland (QLD)
- Licensing body: Office of Fair Trading Queensland
- Workers comp: WorkCover Queensland (mandatory)
- Key licences: Builders (QBCC licence), electricians, plumbers, real estate agents, security providers
- Payroll tax: 4.75% on wages above $1.3M annual threshold
- Check your requirements: business.qld.gov.au
Western Australia (WA)
- Licensing body: Department of Mines, Industry Regulation and Safety
- Workers comp: WorkCover WA (mandatory)
- Key licences: Builders, electricians, plumbers, real estate agents, motor vehicle dealers
- Payroll tax: 5.5% on wages above $1M annual threshold
- Check your requirements: smallbusiness.wa.gov.au
South Australia (SA)
- Licensing body: Consumer and Business Services SA
- Workers comp: ReturnToWorkSA (mandatory)
- Key licences: Builders (BLD licence), electricians, plumbers, security, conveyancers
- Payroll tax: 4.95% on wages above $1.5M annual threshold
- Check your requirements: sa.gov.au
Tasmania (TAS)
- Licensing body: Consumer, Building and Occupational Services
- Workers comp: WorkSafe Tasmania (mandatory)
- Key licences: Builders, electricians, plumbers, gas fitters, security
- Payroll tax: 4% on wages above $1.25M annual threshold
- Check your requirements: business.tas.gov.au
Northern Territory (NT)
- Licensing body: NT Licensing Commission and various industry bodies
- Workers comp: NT WorkSafe (mandatory)
- Key licences: Builders, electricians, plumbers, real estate agents, liquor
- Payroll tax: 5.5% on wages above $1.5M annual threshold
- Check your requirements: nt.gov.au
Australian Capital Territory (ACT)
- Licensing body: Access Canberra
- Workers comp: WorkSafe ACT (mandatory if employing)
- Key licences: Builders, electricians, plumbers, real estate agents, security
- Payroll tax: 6.85% on wages above $2M annual threshold
- Check your requirements: accesscanberra.act.gov.au
Insurance Requirements
While not all insurance is legally required, these are the types every small business should consider:
- Workers compensation - Mandatory in all states if you employ anyone (even casuals).
- Public liability - Not legally required for most businesses, but strongly recommended. Some clients and venues require it.
- Professional indemnity - Required by law for some professions (financial advisers, accountants, lawyers, builders, engineers). Recommended for all service businesses.
- Product liability - Important if you manufacture or sell physical products.
- Cyber insurance - Increasingly important if you handle customer data or operate online.
Local Council Requirements
Your local council may require:
- Home-based business permits
- Commercial signage approval
- Food handling permits and registration
- Development applications for physical premises
- Parking and access requirements
Contact your local council directly to check what applies. Use the ABLIS tool to search by location and industry.
Staying Compliant
Compliance is not a one-time task. Set calendar reminders for:
- Quarterly BAS lodgement (if GST registered)
- Annual tax return
- Annual ASIC review (if company)
- Business name renewal (every 1 or 3 years)
- Insurance policy renewal
- Workers compensation policy renewal
- Licence and permit renewals (varies by industry)