How to Start a Business in Australia

Australia is moving towards a big shift at a global level. It is strengthening the ties at the B2B level and becoming a hub for innovation, sustainability, and digital transformation.

Backed with a robust economy, a skilled workforce, and government-based programs that aim to support startups in 2025. This presents a golden entrepreneurship opportunity in Australia.

The mega-shift towards a digital-first economy, combined with growing demand for sustainable and tech-driven solutions, makes it the perfect time to start a business in Australia.

As per Statista, The Total revenue is expected to show an annual growth rate (CAGR 2022-2029) of 9.45%, resulting in a projected market volume of US$95.99m by 2029.

Do you know how this became possible to set the economy on a high note? This all happened in the Post-Pandemic recovery era, which made the government doubt the economic stability during the tough times.

To come up as a strong leader, the Australian government doubled down on supporting small-scale businesses through grants, startup business loans, and digital infrastructure.

The government conducted programs like small business grants in NSW, Tax incentives for innovation, and a streamlined registration process that was helping founders to make a move from idea to execution so fast.

But…wait, this is not the complete picture, as business is not only about funding. The business environment is ripe with opportunities thanks to;

• A highly educated and tech-savvy population comes with resources,
• A digitally connected society
• Booming sectors like AI, Healthcare, AgriTech, Clean Energy, and eCommerce
• Strong trade connection with the Asia-Pacific region, and so on.

In this blog, we’ll explore in detail how Australia provides fertile grounds for new business ideas. What makes Australia grow as the largest economy at the global frontier?

Steps on How to Start a Business in Australia?

Starting a business at an initial level indeed takes a lot of hard work. You need to be captivated with business skills, profound ideas, innovation, and discipline to run a futuristic business.

Below are the crucial steps mentioned that would be a great help to you if you add them to the list ‘steps required to start a business in Australia.

1. Conduct a Thorough Market Research

Before fully investing resources or manpower, ensure you understand the market environment. Yes, sometimes it feels that we can do the business as we have sufficient knowledge about the business, but this won’t be enough.

For this, we need to take a quick brief of the market, risk management tactics at least basic level, and how intriguingly you can present your business to build a brand. All this preparation is to give tough competition and be the company that gets recognized by its quality of services of products.

Many of the entrepreneurs skip the R&D phase and end up offering products and services to limited audiences, or go into the market where the competition is already tough.

So, to succeed in the market, you need to bring some uniqueness or fill the market gap that requires research. So, what should our research aim to answer?

There would be multiple questions that need to be brainstormed before delving deep into the market.

You first need to focus on whether there is any unmet need or the pain point that your product and services can solve.

Define the customer demographics, purchasing behavior, location, and digital habits, and accordingly sell your product/services to them.

Analyzing local & global competitors that are operating in the same space. What’s their uniqueness, or what can you add to what they’re missing?

What’s your USP? Pricing sustainability? Or are there any regulatory barriers?

Bonus Tip: Pro tools, for instance, IBISWorld, Statista, Google Trends Australia, and ABS.gov.au, can help you gather reliable insights and real-time data. A validated idea supported by research dramatically increases your chances of success.

2. Create a Detailed Business Plan

Once your market research backs up your idea, the next step is to take your idea and turn it into a real plan through a structured business plan. This is your plan; it helps you stay on track and helps to bring in investors, lenders, or government assistance.

What should a good business plan include?

• Executive Summary

A brief overview of your business idea, what your business goals are, and how you will reach your goals.

• Market Analysis

Summarise your research, your target market, demand, and how your competitors operate within the market.

• Product or Service that You will Offer

This section will describe what you are selling, how it works, and how it will help your customer to address their problem.

• Operations Plan

How is the business going to operate? Include things like logistics, team, how the supply chain will work, or vendor relationships.

• Marketing & Sales Strategy

How are you going to attract and retain your customers? This does include pricing, social media promotion, online marketing, and sales funnels.

• Financial Forecasts

Include start-up costs, sales forecasts, break-even analysis, and what you will need for funding.

• Funding Requirements

If you will be applying for startup business loans or small business assistance grants (either NSW or national), then this section is very important.

Having a well-thought-out business plan gives you strategic direction and is often a requirement when you apply for funding or take on partnerships with other investors/businesses.

3. Pick a legal structure & register your business

The next important decision you will have to make is in selecting the right legal structure, as this will affect taxes, liability, paperwork, and the opportunity to raise capital.

What are the common business structures in Australia?

• Sole Trader- Very simple and low-cost; you are normally personally liable for any debts incurred.
• Partnership- Owned by two or more people. The responsibilities, profit, and risks are shared.
• Company (Pty Ltd)- Separate legal entity, protects the owners with limited liability protection, and comes at the expense of more regulation and set-up costs
• Trust- Somewhat a hybrid legal structure, where the trustee holds assets for the beneficiaries. This is very complex, but it provides asset protection and opportunities to undertake special tax planning.
• The registration process- Apply for an ABN (Australian Business Number) using the Australian Business Register.

Then register your business name with ASIC (Australian Securities and Investments Commission). You will also need to register for the GST if you are projecting to earn over AUD 75,000/yr.

(Ref)

Finally, you will also need to register for PAYG (Pay As You Go) withholding if you plan to hire employees.

4. Acquire Relevant Licenses and Permits

All businesses in Australia have obligations under local and state government laws and are generally covered by federal law. Depending on your industry, you may need one or many licenses or permits to operate your business in Australia.

When starting your business, it is important to consider the following when procuring licenses:

• Zoning and council requirements
• Health and safety permits
• Environmental approvals
• Professional credentials

Example: A Sydney food truck needs to apply for a food business license, and health inspection license, and obtain a public area permit for operation.

There are stiff penalties for failing to get the right licenses. Businesses can be fined or forced to close down. Absolute thoroughness applies to all of these processes.

5. Financial Setup

You will want to get your finances under control from day one. Here is how to establish a financial basis for your startup:

• Open a Business Bank Account

To legally distinguish between business and personal finances, make sure to keep separate accounts. This should make filing tax returns easier and establish your business as credible.

• Choose Accounting Software

Choose from platforms such as Xero, MYOB, or QuickBooks, which track expenses, payouts, invoicing, and payments to other businesses in Australia.

• You will need to register for a Tax File Number (TFN)

If you are going to be registering as a company, then you will need a separate TFN from the ATO (Australian Taxation Office).

• You may need to set up Superannuation

If you want to hire employees, then you will need to set up superannuation compliance with super laws.

• Protect Your Business

Consider types of insurance:

1. 1. Public Liability Insurance ( for any high/ medium infrastructure interaction with the public)
2. 2. Workers' Compensation
3. 3. Professional Indemnity Insurance
4. 4. Cyber Insurance (Digital-based businesses)
• Research Funding Options

Don't bootstrap if you don't have to. Here are a few options you could consider:

1. 1. Startup business loans are available to businesses from banks/financial institutions
2. 2. Government rebates/grants, etc. (small business grants NSW)
3. 3. Angel investors /VCs
4. 4. Crowdfunding organisation
5. 5. Use the Grants & Programs Finder to search for relevant federal or regional funding.

6. Create Your Tech Stack

In a competitive landscape, building your tech stack is crucial to your success. Australian consumers are predominantly digital and expect to interact with you online easily.

Build a Professional website that includes;

• Mobile Responsive
• SEO compliant
• Fast loading
• Communicating your value proposition

Consider using tools such as WordPress, Webflow, Shopify, or you could engage a web development agency.

Create a Mobile App (If Applicable)

If you think they will benefit from a mobile experience, you may like to build a cross-platform mobile app. Collaborate closely with a reliable mobile development company to create an app that is user-friendly, easy to scale, and secure.

Utilise CRM and Automation Tools

Software like HubSpot, Zoho, or Salesforce can be beneficial in managing customers, capturing leads, and automating your marketing workflows.

Enable E-commerce & Payment Integration

If you are selling online, integrate secure payment gateways such as Stripe, Square, or PayPal along with inventory tracking systems, product reviews, and live chat.

Prioritize Cybersecurity

Australian laws, including the Privacy Act 1988, require you to protect customer data. You need to get secure hosting and SSL certificates in addition to following GDPR compliant practices.

Top 10 Profitable Business Ideas in Australia for 2025

If you're considering what is the best business to start in Australia in 2025, you are not the only one. Entrepreneurs, investors, and digital nomads alike have their eyes on Australia's fast-growth sectors, which have the potential to ride the economic waves of 2025.

Coupled with a fabric of changing consumer habits, government incentives, and a drive for digital transformation and sustainability, creates a wealth of opportunities to become an entrepreneur in Australia.

To get your creative juices flowing, here are 10 startup ideas across growth sectors that meet Australia's current trends.

1. 1. Eco-Friendly Packaging Solutions

Australia is currently phasing out single-use plastics, and being one of the first countries in the world to impose strict packaging laws, there is an urgent need for sustainable, biodegradable, and compostable packaging solutions. From the food and beverage industries, businesses in Australia are now required to adopt or expect eco-practices in eCommerce and cosmetics.

Starting a business in eco-packaging might mean:

• Manufacturing compostable packaging materials
• Distributing reusable product packaging to retailers
• Providing custom-designed, branded eco-packaging for online stores

It also aligns with Australia's 2025 National Packaging Targets of 100% recyclable, compostable, or reusable packaging; therefore, this sector is sustainable in addition to being a very scalable sector.

For example, BioPak is a leading sustainable packaging company that puts the planet first. They started in 2006 and have now become a globally recognized and acceptable brand.

The Australian sustainable packaging market size reached USD 12.7 billion in 2024, according to IMARC Group

In 2024, the digital advertising agencies market in Australia was valued at $3.7 billion, according to IBISWorld

1. 2. Digital Marketing Agency

Due to the sheer number of small and medium-sized businesses (SMEs) going digital, the demand for digital marketing services is booming, from social media management, SEO, and performance marketing to influencer marketing campaigns.

So, if you're good at digital strategy, content creation, or just know your way around marketing automation tools, launching a digital marketing startup in Australia, directed at:

• Local businesses moving online
• Niche markets, ie, health, legal, and real estate
• International clients wanting to reach Australian consumers can feasibly do so.
• Freelancers and solopreneurs can easily grow this into a company through the proper technology, a team that works remotely, and a client-first mindset.

For example, Clearwater is an established brand in Australia. It dealt in the digital marketing agency and positioned itself as one of the global leaders.

1. 3. Health & Wellness Coaching

As Australians become more aware of the impact of mental health, fitness, and general wellness, health and wellness is a growing sector. Therefore, you can start your own wellness-based startup through:

• Fitness training, online or face-to-face
• Nutrition plan application
• Mental wellness coaching
• Workplace wellness

For example, TheMindRoom, a Melbourne-based wellness hub, runs psychology-based performance coaching and wellbeing science. A successful business model that is a need of the hour, and understands the pain behind every sitting.

A Melbourne-based wellness hub that combines psychology, performance coaching, and wellbeing science. They offer both in-person and virtual sessions and have become a go-to for individuals and businesses focused on mental wellbeing.

1. 4. Sustainable Fashion Brand

The fashion arena in Australia is changing rapidly, with consumers, particularly Gen Z and Millennials, wanting ethically produced and environmentally friendly clothing.

This means there is a huge opportunity for startups to focus on Ehrlich on/planning to help build:

• Slow fashion manufacturing
• Recycled textiles and zero-waste designs
• Locally sourced and fairly, ethically produced garments

You remarked on sustainability coupled with storytelling and built a direct-to-consumer brand using e-commerce platforms, Instagram, and influencers. Again, subscription models and limited capsule drops are a trend.

For Example, OutlandDenim is based in Queensland, and they produce sustainable and ethically-made jeans. They employ women rescued from human trafficking and focus on environmental practices, gaining global attention, including from Meghan Markle.

1. 5. Remote Work Tools and SaaS Platforms

With hybrid and remote work continuing to become the norm in Australia, there is a growing. Solo consumption scenario where the solutions being sought are:

• Collaboration, project management platform
• Virtual whiteboards, brainstormers, and meeting rooms
• Time-tracking and team performance analytics
• Secure communications software

Creating a Software-as-a-Service (SaaS) product focused specifically on remotely working businesses, particularly SME, would be a profitable venture. Make sure that you consider UX, simple automation, and, where possible, compatibility across devices.

In 2025, people won't be looking for diets or workouts, but lifestyle approaches. The market is towards all-encompassing wellness solutions that combine physical, emotional, and nutritional well-being.

If there is an opportunity to connect these lifestyle scenarios through any kind of mobile app or platform with virtual sessions, you will win.

For Example, Atlassian is a global technology leader based in Sydney that builds software applications, including Jira, Confluence, and Trello applications, all of which are used globally for software project management and distributed teams.

1. 6. AI Chatbot Service Business

Customer service is changing very quickly because of Artificial Intelligence. More Australian businesses, in particular eCommerce stores, real estate agents, and health care service providers, are using AI chatbots to help customers 24/7.

You could create or resell.

• Custom AI chatbot solutions for SMEs
• Integration services to Messenger, WhatsApp, or other related sites
• Templates for existing bots, focused on specific industries (eg, legal, healthcare)

Globally, the chatbot industry is projected to grow very fast, and with Australia's plan to be a digital economy, businesses will be looking for AI solutions.

For Example, CuriousThingAI is an Aussie startup that provides voice AI assistants to businesses for customer service, appointment booking, and feedback collection - it's being used in a big way in the healthcare and financial services industries.

1. 7. Home Improvements & Renovations

With more Australians spending time at home and investing in making their home more comfortable, the home renovation sector is booming. Startups operating in this space have opportunities to focus on:

• Smart technologies to support home installations or renovations
• Sustainable furniture/home renovations
• Styling or optimising spaces for beauty or investment
• DIY and online consulting or design services

This is especially lucrative as an offering in suburban or semi-rural locations that are close to urban centres, but where costs to develop property are becoming very viable.

You could take this business to the next level with partnerships with builders, architects, or suppliers.

For example, Hipages, Australia's largest online marketplace connecting consumers with tradespeople who have been pre-screened to complete home improvement projects. It's a tech-enabled services marketplace that is used by millions.

1. 8. Online Education & eLearning Platforms

With Australians keen on upskilling and learning remotely, this is a strong growth area in edtech. Whether it is for online short courses or more niche learning platforms, digital education was never just going to be a COVID trend; it is the future.

Especially lucrative niches include:

• Coding, data science, and AI.
• Finance and investing.
• Creative skills (design, writing, photography).
• Personal development & productivity

Through a focus on mobile-first design and engaging UX, creating an online learning platform or app in 2025 could potentially allow you to earn recurring revenue through subscriptions or direct course purchases.

For example, Edrolo is a Sydney-based education technology business that provides curriculum-aligned video lessons, exam preparation, and analytics to Australian high school students. It's being used widely across NSW and Victoria.

1. 9. Pet Care & Grooming Services

As per Statista, Australia is undoubtedly a nation of animal lovers, with nearly half of the households in Australia owning a dog, and a third of Australian homes having a cat as a pet

In particular, this creates space for a rapidly expanding startup economy in:

• Mobile pet grooming services.
• Natural following and organic pet food subscription services.
• Pet daycares/ dog walking apps.
• Vet tech, wearables, and health monitoring systems.

Cities like Sydney, Brisbane, and Melbourne are perfect for pet-related business ideas. When exploring e-commerce and mobile booking apps, you can also have a digital business.

For Example, Mad Paws, A successful Aussie startup that connects pet owners with carefully vetted and trusted pet sitters, walkers, and groomers. A trusted marketplace with no shortage of pet service providers across the country.

1. 10. Farm-to-Table Subscription Boxes

As more Australians discover organic and locally sourced food, farm-to-door delivery services are becoming very successful. If you are located in or near a rural area, you can partner with farmers and producers and offer:

• Seasonal fruit and vegetable boxes
• Artisanal dairy, bread, and meat products
• Subscription boxes with recipe cards and meal kits

This business not only supports local farmers while it complies with the needs of eco-conscious urban consumers wanting transparency and freshness. You simply do need a compelling brand story and a strong logistics plan to stand apart from the competition.

For Example, Harris Farm Markets sends fresh, locally sourced farm produce to homes around NSW and also beyond. Their subscription box service promotes seasonal eating whilst supporting local farmers.

What are the Tips for Success in Business in 2025

There are some tips and a roadmap to achieve success in business in 2025 that can make you stand out. Those mentioned below;

Prioritize Online Presence

A strong online brand is no longer an option. Focus on:

1. 1. Search Engine Optimization (SEO)
2. 2. Social media strategy
3. 3. Online reviews and reputation management
4. 4. Email and influencer marketing

Note: CodeAegis has strong expertise in elevating online presence. You can reach out to us if you're looking to scale your startup into an enterprise-level business.

Utilize AI for Automation

AI is all about doing more with less. So, then Automate:

1. 1. Lead generation
2. 2. Customer service
3. 3. Inventory management
4. 4. Data analytics

Note: CodeAegis also expanded into AI-powered Automation to help your business stay ahead of the curve. So, make sure to get in touch with us, whether you have a query or a game-changing idea to build a business from scratch. We can help you reduce operational costs and make smarter decisions

Stay Agile with Market Trends

Trends change quickly. No matter if it is sustainability, Web3, or something new & innovative, your business needs to be:

1. 1. Agile in their operations
2. 2. Fast to test & pivot
3. 3. Open to innovation
4. 4. Set quarterly review goals to keep pace with market needs.

Wrapping Up…

The Australian business scene is full of opportunities, particularly in 2025, for people who are ready to take advantage of digital transformation and sustainability, and conscious consumerism.

Whether you are launching a side hustle or building a scalable startup, these top business ideas in Australia offer a starting point and a wealth of potential.

Want to make sure your business idea is viable, scalable, and future-ready? Then don’t just dream it, validate it, write your business plan, and start your new business launch in Australia.

Are you looking to find out How to Start a Business in Australia in 2025?

No problem, we’ve got you covered. If you are struggling with any step or decision, then our expertise can make a big difference to your business journey.

If you have any questions, please do not hesitate to get in touch.

Your Vision, Our Expertise

Frequently Asked Questions

1. I want to open a business, but I am at a loss for ideas. What do I do?

Start with exploring current trending industries in Australia, like eco-conscious packaging, digital marketing, or wellness. Use tools like Google Trends and IBISWorld to find gaps in the market. You can even chat with startup advisors to help determine what suits your interests and skills.

2. I have an idea for a business, but I do not have a budget. What can I do?

Look into startup business loans, small business grants for NSW, crowdfunding, or pitch to angel investors.

Get out a business plan to help you determine what opportunities you have for funding through the business.gov.au site.

3. What does NSW mean?

NSW is short for New South Wales in Australia, a major startup region. "Small business grants NSW" refers to the financial funding available for small businesses in New South Wales.