What you need to know about business licences in Australia

Starting a business requires more than just a solid business idea. You also need the right business licence. In many cases, your business may need specific registrations, licences or permits in order to comply with Australian federal and state laws.

The type of license you need will depend on many different factors, including the type of business you operate, the business structure, and your location. Holding the right business license means you’re operating within the law, and that your customers know you’re operating a legitimate and trustworthy business.

Types of business licences

Each industry, be it real estate, food, or finance, carries its unique set of permissions and standards. Below is a list of some of the licences required by industry.  It is by no means comprehensive but should help you think about some of the requirements that you may need to consider.

Construction

To operate a construction business in Australia, you may require a building licence, heavy machinery approval, land use permissions, or even a high-risk work permit. All states and territories have slightly different rules and regulations, so make sure you check your local laws.

Food and beverage

When it comes to running a café, restaurant or even a food truck, different states call for different licensing requirements. For example, food and beverage businesses in Victoria must register with their local council under the Food Act 1984. The type registration required depends on the risk classification of the food being served.

Financial services

Businesses involved in the finance sector, whether it’s crowdfunding, offering financial advice or overseeing insurance claims, are required to have the Australian financial services licence.

Real estate

Engaging in real estate activities? All states and territories in Australia have slightly different rules when it comes to real estate licences. For example, in NSW, all real estate agents need a Real Estate Agent Licence issued by NSW Fair Trading. It is also a legal requirement that they hold Professional Indemnity insurance.

Therapeutic goods

Businesses in this industry must be registered with the Therapeutic Goods Association (TGA). These goods include medicines, medical devices and other health-related products.

Businesses in this industry must comply with product standards and advertising guidelines as laid out by the TGA.

Therapeutic goods

Businesses in this industry have to be registered with the Therapeutic Goods Association. Compliance with product standards and advertising guidelines as laid out by the TGA is also critical.

How much does it cost to get a business licence?

The cost of a business licence in Australia depends mainly on two factors: the specific type of licence you need and your business’s location.

If you need an estimate of the potential cost of your business license, then make sure you visit the ABLIS website. By entering your business details, the website will guide you towards the relevant business permits. Otherwise, you can book a quick consultation with your local council to determine the exact cost.

What if I have an online business?

While your business type determines the business licence you might require, the online platform itself has additional legal considerations.

For starters, every online business needs to ensure its equipped with:

• Terms and conditions
• Privacy policy
• Cookie policy
• Data breach response plan.

While these are the general requirements, your specific online business model might have added considerations. Seeking specialised advice is always a good strategy to ensure comprehensive compliance.

If you operate an online business, it may also wish to consider purchasing Cyber Liability insurance. Cyber Liability insurance is designed to help protect you from claims and support your profitability in the event of a cyber breach or attack. For example, your Cyber Liability insurance can potentially assist with the unintended loss or release of customer personal information, cyber crime, cyber extortion/ransomware and business interruption due to a cyber event. These are all possible cyber threats to consider if you run an online business.

Why do I need a business licence?

Your business license is not just a legal requirement. It proves that you manage a business that is dedicated to legal compliance and high operational standards. By obtaining and holding a business license, it shows customers and stakeholders that your business is credible and legally compliant in all its undertakings.

Setting up your business comes with its challenges, but safeguarding it should be hassle-free. BizCover offers fast and simple business insurance quotes. For on the go cover, go BizCover.