One of the questions new business owners in Australia frequently ask is whether they need a licence to operate. The answer depends entirely on what your business does, where it operates, and how it is structured. There is no single business licence in Australia — instead, there is a layered system of federal, state, and local government requirements that varies enormously by industry.
Here is how to navigate it.
Start With an ABN
Every business operating in Australia needs an Australian Business Number (ABN). This is not technically a licence — it is a tax registration — but it is the foundation of your business identity and is required for invoicing, GST registration, and a range of other business activities. Applying for an ABN is free and takes around 10 minutes at abr.gov.au.
Industry-Specific Licences
Many industries in Australia require specific licences or registrations before you can legally operate. Common examples include:
- Trades — Plumbers, electricians, builders, and other tradespeople are required to hold licences issued by their state's relevant authority (e.g., NSW Fair Trading, Queensland Building and Construction Commission). Working without a licence in a licensed trade is illegal and can result in heavy fines.
- Food businesses — Cafes, restaurants, food trucks, and any business handling food for sale must register with their local council and comply with food safety standards. A food safety supervisor certificate is required in most states.
- Health practitioners — Doctors, dentists, physiotherapists, nurses, and other regulated health professionals must be registered with the Australian Health Practitioner Regulation Agency (AHPRA).
- Financial services — Businesses providing financial advice or services need an Australian Financial Services Licence (AFSL) issued by ASIC.
- Real estate — Real estate agents and property managers must hold a licence issued by their state authority.
- Labour hire — Labour hire businesses require a Labour Hire Licence in Queensland, South Australia, Victoria, and the ACT.
Local Government Permits
In addition to state-level licences, many businesses require approval from their local council. This is most common for businesses operating from a commercial premises (development approval or change of use consent), businesses with outdoor seating or signage, food businesses, and businesses that generate noise, waste, or traffic that affects neighbours.
How to Find Out What You Need
The best starting point is the Australian Business Licence and Information Service (ABLIS) at ablis.business.gov.au. Enter your business type and location and it will generate a list of the licences, registrations, and permits that may apply to your business at federal, state, and local level.
Your state's small business commission or fair trading office is also a useful resource, as is an industry association relevant to your trade or profession.
Do Not Skip This Step
Operating without required licences or permits is not just a legal risk — it can void your insurance, expose you to personal liability, and damage your reputation permanently if things go wrong. Spend the time upfront to confirm what is required for your specific business. It is always less painful to comply from the start than to fix problems later.