Why start a tradie business in Australia?
Trade, building and construction is one of the largest sectors in Australia, with almost half a million registered businesses, the majority of which are considered small businesses having less than 20 employees.
Starting a business as a tradie in Australia can be a great idea because there’s strong demand for skilled tradies. Australia’s construction industry is forecast to continue to grow over the coming decade, which can make a trade businesses a solid choice for security and steady income. This trend is likely to continue well into the future.
Jump to:
- Quick start guide
- Step-by-step process for starting a tradie business
- Licence and registration requirements by state
- Considerations for specific types of trades
- Insurance, tools and equipment essentials
- FAQs for tradies starting a business
- Next steps
Step-by-step process for starting your tradie business
Different trades have different requirements. For example, electricians need specialised safety certificates, while landscapers generally have fewer regulations but may still need insurance.
Here are the steps to consider when starting your new business:
- Check your qualifications: Make sure your trade certifications meet regulations specific to the state you intend to operate in.
- Apply for licences: Each trade and state have different licensing rules. The Australian Business Licence and Information Service (ABLIS) has an online portal that can help you identify the licences required for your business.
- Get an ABN and register for GST: This is important if you plan to earn over $75,000 per year. Learn more about applying for GST, PAYG and other registrations.
- Arrange insurance: Public liability insurance is often mandatory. This will depend on the types of jobs you’ll be working on.
- Organise your finances: Consider easy-to-use accounting software or a professional bookkeeper.
- Get the right tools and equipment: Decide whether buying, financing or hiring equipment suits your needs.
- Market your business: Use online directories, social media and word-of-mouth to find customers.
Understanding licence and registration requirements by state
It's important to remember that some trades may require specific qualifications or experience before you can obtain a license or registration.
Victoria (VIC)
To start a tradie business in Victoria, depending on your trade, you may need to obtain specific licenses and registrations from the Victorian Building Authority (VBA) - for builders, plumbers and some subcontractors - or other relevant bodies.
The VBA oversees licences, focusing on safety and qualifications, and it should be your first resource to consider once you begin the process.
New South Wales (NSW)
If you're a tradie looking to start a business in New South Wales, you'll need to navigate several licensing and registration requirements. For example, you may require a contractor license to carry out building or trade work valued at over $5,000 in labour and materials (including GST). Certain trades, like electrical, plumbing and gas fitting, require specific licenses and may have additional registration requirements.
NSW Fair Trading manages the licensing and registration processes for tradespeople and you can apply for licenses online or in person at Service NSW.
Queensland (QLD)
The Queensland Building and Construction Commission (QBCC) sets clear rules on mandatory insurance and trade qualifications. Before you start a construction or trade business in Queensland, you'll need to secure the appropriate licenses, registrations and insurance.
The specific requirements vary depending on the type of trade and whether you're operating as an individual, partnership or company.
Western Australia (WA)
The Building and Energy Division requires comprehensive licensing for most trades. Your industry and geographical location will likely dictate which licences, permits or registrations you need before you can start operating.
The WA Government's business registration and licensing portal can help you find the relevant licenses and permits required to start a business as a tradie in Western Australia.
South Australia (SA)
In South Australia, you'll likely need a contractor's license, particularly if you're contracting building work. The Consumer and Business Services (CBS) has strict rules for licensing trades.
Depending on your trade, you'll need to obtain the relevant licenses and registrations, which can be completed through the South Australian Government's online contractor licensing portal.
Tasmania (TAS)
If you're working in the construction industry or wanting to start a tradie business in Tasmania, you'll likely need a construction induction card. Consumer, Building and Occupational Services (CBOS) categorises licences clearly, especially for building-related trades.
CBOS is the Tasmanian government body responsible for building and occupational licensing, so refer to their website for specific information on applying for a licence.
Australian Capital Territory (ACT)
To start a tradie business in the ACT, you'll need to register your business, obtain an ABN and potentially secure relevant trade licenses and permits, depending on your specific trade. You may also need to register a business name and comply with tax obligations.
Access Canberra regulates trades and licensing requirements. Depending on your trade, you might need permits related to health and safety. Many trades, such as electrical, plumbing and building, require specific licenses to operate legally.
Northern Territory (NT)
The NT Government provides guidelines and licences for various trades starting a business in the NT.
For building work, you'll need to register with the Building Practitioners Board, particularly if the cost of the work exceeds $12,000. Additionally, consider the need for licences related to pest control, if applicable, and ensure you understand your obligations under consumer law.
Special considerations for specific types of trades
Plumbing
Plumbers generally need specific qualifications, licences, public liability insurance and must follow local council rules.
Electrical
Electricians face strict safety regulations and must obtain licences through state-specific energy authorities.
Carpentry
Carpenters might need a builder’s licence, especially in NSW and VIC, for structural projects.
Landscaping
Landscapers usually need fewer licences but must have suitable insurance coverage.
Painting
Painters may require licences depending on the size and type of the project – for example, residential painting vs commercial projects.
Tiling
Tilers typically have fewer regulatory hurdles unless they’re involved in major construction projects.
Concreting
Licence requirements for concreters depend on the project's scale or structural importance.
Roofing
Roofers often require specific licences due to safety risks and the importance of proper installation.
Insurance, tools and equipment essentials for tradies
Public liability insurance
This insurance covers damage or injury claims against your business. It’s usually mandatory for tradies.
Tools insurance
This insurance protects your equipment from theft, damage or loss, so your business can keep running smoothly despite any unfortunate events that may occur.
Vehicle insurance
Vehicle insurance covers your work vehicle in case of accidents or theft, protecting your business assets.
Income protection insurance
Income protection helps if you can’t work due to illness or injury and may provide some added financial security.
Equipment options when starting a business as a tradie
Equipment financing
Financing equipment spreads the cost over time, helping manage your cash flow. For example, vehicle financing may help a plumber buy a van without a large upfront cost.
Short-term hiring
A hire purchase can be useful for special tools, equipment or vehicles you don't need regularly. It may also lower your ongoing costs.
Managing your business finances and accounting
Good financial management can help your tradie business grow and remain on track. For example, you can use easy accounting software like NAB Bookkeeper to track invoices, manage tax and monitor cash flow without needing detailed accounting knowledge.
Applying for a business loan like NAB QuickBiz if you have slow periods, may help keep your business running smoothly and pay your bills on time.
Learn more about the various business finance and loan options available.
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Most tradies need a licence. Check the rules in your state and for your specific trade.
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Usually yes, but you should check your job contract first to ensure it’s allowed.
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Starting as a sole trader is the simplest option, but a company structure can offer greater flexibility and personal liability protection. It is possible to change your business structure later.
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While it might help you get established faster, always research carefully to make sure it's a good deal.
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You'll typically need licences, business registration, insurance paperwork and possibly employment agreements.
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Use online listings, social media, customer referrals and local ads to attract clients.
Key takeaway and next steps
Starting a tradie business in Australia takes preparation and clear planning due to the differing rules and regulations across each state. Use this guide to understand the steps and resources available.
Ready to get started? Check state regulations, plan your finances and set yourself up for success.
Reach out to a specialist NAB business banker if you need detailed guidance tailored to your situation.
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