How to start a tradie business in Australia

Launching your own business is both an exciting and nerve-wracking time with so much to think about, plan and get into motion.

There’s a strong demand for qualified tradespeople, builders, project managers. But success takes more than tools and dedication. You’ll need the right business structure, licences and personal skills.

Here are a few things to think about when you’re in those early stages of starting out and how to stay successful in the future.

1. Make sure you have the capacity

While the first stages of starting your tradie business may be a bit of trial and error, it’s important to understand your limits and capacity. It may be tempting to say yes to every job that comes through, but the issue of overcommitting and under delivering can cause more harm than good.

By having control and things in order, you can avoid running the risk of becoming burnt out too quickly and potentially damaging your business reputation. Keep these tips in mind when trying to work out and manage your workload.

• Do you have enough staff? You may need to hire external help to get the job done, especially if they have a different skill set from you. For example, a landscaping project that needs the assistance of a plumber or a job that requires more hands of deck to meet a deadline.
• Have you got the right tools and equipment? If some of your jobs require specialist equipment you may need to look purchasing these down the track. For the interim you can always hire or look at purchasing these second hand to help keep the finances under control.
• Do you have financial capacity? If you find your business is growing quicker than your cash flow, it might be worth sitting down and having a chat with a business banker. They can provide advice and guidance to ensure your business is on track and provide different options if you need to increase your financial capacity.

2. Create a business plan

Having a clear vision and a solid plan in place is essential for anyone starting their own tradie business. Going in without clear goals, systems or direction can lead to confusion and setbacks. A well-structured business plan can help you stay organised and focused. Here are the key areas your plan should cover.

Decide on a business structure
Before you start operating, decide on the legal structure that best suits your business. Common options include:

• Sole trader: Simple and affordable to set up, but you’re personally responsible for debts and liabilities.
• Partnership: Suitable if you’re going into business with others as responsibilities and profits are shared.
• Company: Offers limited liability protection but comes with more reporting and tax obligations.
• Trust: Useful for asset protection and tax planning, but more complex to establish and manage.

Register your business

Once you’ve chosen your structure, it’s time to make your business official.

• Register your business name with the Australian Securities and Investments Commission (ASIC).
• Apply for an Australian Business Number (ABN) through the Australian Business Register.
• Register for GST if your annual turnover will exceed $75,000.
• Consider securing a domain name and professional email address to help build your brand presence.

Research licence requirements and permits

Every tradie business must meet certain legal and licensing requirements, which vary depending on your trade and the state or territory you operate in. Make sure you check your local authority’s website for detailed information on licence classes, fees, and ongoing renewal requirements before you start trading.

• New South Wales (NSW): Most tradies need a licence from NSW Fair Trading to perform residential building or specialist work.
• Victoria (VIC): Trades involved in domestic building work over $10,000 must be registered with the Victorian Building Authority (VBA).
• Queensland (QLD): You’ll need a Queensland Building and Construction Commission (QBCC) licence for any building work valued at more than $3,300.
• Western Australia (WA): Builders and certain trades require registration with Building and Energy WA.
• South Australia (SA): Tradies must be licensed through Consumer and Business Services (CBS) if performing building or plumbing/gas fitting work.
• Tasmania (TAS): There may be some difference with certain trades, but most tradespeople will need to obtain a license through the Tasmanian Consumer, Building and Occupational Services (CBOS) department.
• Australian Capital Territory (ACT): Construction professionals need to be licensed by Access Canberra under the Construction Occupations (Licensing) Act.
• Northern Territory (NT): Licences are required for building and trade work under the Building Practitioners Board.

3. Get your insurance organised

Whether you’re a plumber, sparky or chippy, every tradie faces unexpected risks on the job. From accidentally damaging a client’s property to someone getting injured on site. In today’s world, even a small mishap can lead to costly repairs or legal claims.

Business insurance helps protect your livelihood, reputation and peace of mind if something goes wrong. In many cases, tradespeople are required by law or contract to hold Public Liability insurance, and most clients or builders will ask for a Certificate of Insurance before you’re allowed on site.

Tools and equipment are also the backbone of your business, so protecting them with Portable Equipment or Tools Insurance can help you recover quickly if they’re stolen or damaged.

Some common types of cover tradies should consider include:

• Public Liability insurance
• Personal Accident and Illness insurance
• Portable Equipment / Tool Cover
• Tax Audit insurance
• Theft insurance
• Cyber insurance

4. Be compliant

Construction and trade is a regulated industry in Australia. Here’re the key things you’ll need to consider:

Registrations and licenses

As discussed above, these can change depending on the state or territory that you’re working in and the kind of work you perform. If you’re unsure exactly what kind of license or registration you may need, visit your trade association website for your industry or your state/territory government website.

Health and safety regulation

Safe Work Australia is a great resource to find more information about industry regulations and ways to check your business is being compliant with these.

Understand codes

Creating a safe work environment is a legal and moral responsibility for every tradie business. You must comply with Work Health and Safety (WHS) laws that protect both workers and the public from potential hazards on site.

Each state and territory has its own WHS regulator, but Safe Work Australia provides national standards, model codes of practice, and practical guidance.

Mandatory insurance

Building practitioners and tradespeople are legally required to hold certain types of insurance. For example, building practitioners in the Northern Territory, specific classes of license in Queensland, specific building practitioner categories in Victoria, and building engineering contractors and building surveying contractors in Western Australia are all required to hold Professional Indemnity insurance. By July 2026, this will extend to building practitioners in New South Wales as well.

Other types of insurance may not be legally required, but contract holders may expect you to hold it anyway – such as Public Liability insurance.

5. Have systems in place

When you’re starting your own business there are going to be many aspects of your business that you will need to manage from finances to marketing, payroll and customer details. Starting fresh is the opportune time to implement systems and get some good, organised habits happening to keep on top of it all. These are some areas of your business where systems will help make your life a whole lot easier:

Tracking jobs

From the moment you accept a job to receiving final payment, having a system which allows you to track the stages, time required, costs etc not only helps you stay on track, but can help when it comes to forecasting for future jobs.

Marketing

You don’t have to be a marketing wizard when it comes to getting the word out there. Sites like Instagram, Facebook and Google all offer insights and systems into how your website or marketing channels are performing. Reports can be easily generated providing valuable details on your customers, where they are coming from and how you reach out to them.

Invoicing

Accurate accounting is the key to your business success. Managing your finances and cash flow is crucial for sustainable growth. Ensure you have strong bookkeeping progress that aligns with your business structure. You may also want to consider working with accounting professionals.

Booking system

You want to make it as easy as possible for customers to get in contact with you when they need your services. Employing the assistance of a booking service helps get your customers in touch with you in the click of a mouse or a simple phone call.

Insurance

While some types of insurance are mandatory, there are others (such as Portable Equipment or Theft insurance) that are commonly taken out by trade professionals. Having adequate insurance in place means that you won’t have to foot the bill if the unexpected should happen. Make time to review your insurance regularly to make sure you have adequate cover and that you’re not paying more than you should.

BizCover’s online platfom makes it easy for tradies to get their insurance sorted. Get multiple quotes from some of Australia’s leading insurance providers and get your insurance sorted today.

Frequently asked questions

Do I need a licence to start a tradie business?

Yes. Most trades in Australia require a licence or registration before you can legally perform work or advertise your services. The exact requirements depend on your trade and the state or territory you’re operating in. Always check with your local licensing body before taking on any paid work.

Can I start a tradie business while employed?

Yes, you can start your tradie business while still employed, as long as your employment contract allows it. Many tradies begin by running their business part-time to build clients and experience before going full-time. Just make sure:

• There’s no conflict of interest with your current employer.
• You’re not using their tools, materials, or time for your own business.
• You comply with tax and insurance requirements for both jobs.

Should I choose a sole trader or company business structure?

That depends on your goals and risk level.

• Sole trader: Simple to set up and affordable. You keep all profits but are personally responsible for debts and liabilities.
• Company: Offers limited liability (your personal assets are protected), but setup and compliance costs are higher, and you’ll have extra reporting obligations with the Australian Securities and Investments Commission (ASIC).

If you’re unsure, speak with an accountant or business advisor to find the best structure for your situation.

What are the legal requirements to start a tradie business?

The main legal steps include:

• Choosing your business structure (e.g., sole trader, partnership, or company).
• Registering your business name and Australian Business Number (ABN).
• Obtaining the correct licences and permits for your trade and state.
• Setting up the right insurance (e.g., public liability, workers’ compensation).
• Complying with workplace health and safety (WHS) laws and relevant industry codes.

Do I need an ABN as a sole trader?

Yes. If you operate as a sole trader, you’ll need an Australian Business Number (ABN) to legally invoice clients, claim business expenses, and register for Goods and Services Tax (GST) if your annual turnover exceeds $75,000. You can apply for an ABN for free through the Australian Business Register at abr.gov.au.

Can I buy an existing tradie business?

Absolutely. Buying an existing business can be a great way to get started, especially if it already has clients, equipment, and staff in place. Before purchasing, make sure to:

• Review the business’s financial records and client contracts.
• Confirm it holds the correct licences and registrations.
• Have a professional conduct due diligence to identify any risks or debts.
  It’s wise to consult a lawyer and accountant before finalising the purchase.

How do I grow my tradie business?

Growth takes strategy, consistency, and great customer service. Here are a few practical ways to expand:

• Build a strong online presence — including a website and Google Business profile.
• Encourage reviews and referrals from satisfied clients.
• Network with builders, suppliers, and other tradies for repeat work.
• Invest in marketing, such as local ads or social media.
• Offer training and upskilling for your team to take on more specialised or high-value work.
• Track your performance with goals and milestones, then adjust your plan as your business evolves.

This information is general only and does not take into account your objectives, financial situation
or needs. It should not be relied upon as advice. As with any insurance, cover will be subject to the
terms, conditions and exclusions contained in the policy wording or Product Disclosure Statement
(available on our website). Please consider whether the advice is suitable for you before proceeding
with any purchase. Target Market Determination document is also available (as applicable).
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