Starting a Trades Business in Melbourne? Get the Setup Right

Many tradies start working before their business is properly set up.

👉 It works short-term… but causes problems quickly:

• Clients ask for your ABN
• You can’t issue proper invoices
• Insurance may not cover you
• Financial records become messy

Getting registered the right way from the start saves time, money, and stress.

Step 1: Choose the Right Business Structure

Your structure affects:

• Tax
• Risk
• Growth potential

Common Options:

Structure	Risk Level	Tax Rate	Best For
Sole Trader	High (personal assets at risk)	Personal tax rates	Small/start-up tradies
Company	Low (separate legal entity)	~25% (small business)	Growing businesses

💡 Important:
If your work involves risk (construction, electrical, plumbing), a company structure offers protection.

Step 2: Get Your ABN & Business Name

✔️ ABN (Australian Business Number)

• Free to apply
• Required to invoice clients
• Needed for tax and GST

👉 Without an ABN, clients may withhold 47% tax

✔️ Business Name Registration

If you trade under a name (not your own):
👉 You must register it

Item	Cost	Authority
ABN	Free	abr.gov.au
Business Name	$42 (1 yr) / $98 (3 yrs)	ASIC

Step 3: Register for GST (If Required)

You must register for GST if:
👉 Revenue exceeds $75,000 per year

Why It Matters:

✔️ Charge 10% GST on invoices
✔️ Claim GST on expenses
✔️ Lodge BAS quarterly

⚠️ If you delay registration:
You may have to pay GST out of your own pocket

Step 4: Get the Right Trade Licences (Victoria)

An ABN does NOT allow you to legally perform trade work.

Key Requirements:

✔️ VBA (Victorian Building Authority)

• Required for building work over $10,000
• Domestic Building Insurance needed above $16,000

✔️ Electrical Licensing

• Must be registered with Energy Safe Victoria

✔️ LeavePlus (Construction Industry)

• Covers long service leave

✔️ WorkSafe Insurance

Required if you:

• Hire staff
• Use subcontractors

Step 5: Check Melbourne Council Requirements

Local councils often have extra rules.

Common Permits:

Permit	Who Needs It	Purpose
Trades Parking	On-site tradies	Avoid parking fines
Home Business	Home-based work	Council compliance
Roadside Trading	Mobile businesses	Legal trading

👉 Missing permits = fines (especially in Melbourne CBD)

Step 6: Set Up Your Financial Systems

✔️ Open a Business Bank Account

Never mix:
❌ Personal spending
❌ Business transactions

✔️ Use Accounting Software (Xero, MYOB)

Benefits:

• Send invoices
• Track income/expenses
• Store receipts
• Monitor cash flow

💡 This also prepares you for:
👉 Payday Super (from 1 July 2026)

Step 7: Understand Ongoing Compliance

Running a business = ongoing obligations

Task	Frequency	Purpose
BAS	Quarterly	GST & tax reporting
Tax Return	Yearly	Final income reporting
Payday Super	Every payday (2026+)	Super paid with wages
ASIC Review	Yearly	Company compliance

Common Mistakes Melbourne Tradies Make

🚫 Staying sole trader too long
🚫 Missing GST registration threshold
🚫 Not getting trade licences
🚫 Mixing personal & business finances
🚫 Poor bookkeeping
🚫 Ignoring payday super changes

👉 These mistakes lead to:

• ATO penalties
• Cash flow issues
• Legal risk

Where Most Tradies Get Stuck

Common challenges:

✔️ Choosing the right structure
✔️ Understanding GST timing
✔️ Licensing confusion
✔️ Managing admin work
✔️ Avoiding Melbourne parking fines

Getting Your Business Set Up the Right Way

A proper setup gives you:

✔️ Professional image
✔️ Legal protection
✔️ Clear finances
✔️ Less stress

👉 The goal is simple:
Set up once, run smoothly long-term.

Final Thoughts

Starting a trades business in Melbourne is straightforward—if done correctly.

👉 The biggest risks come from:

• Rushing setup
• Ignoring compliance
• Poor financial systems

Getting expert advice early helps you:
✔️ Avoid costly mistakes
✔️ Stay compliant
✔️ Focus on growing your business

How Titan Tax Can Help

At Titan Tax, we help Melbourne tradies:

✔️ Choose the right business structure
✔️ Register ABN, GST & business name
✔️ Set up accounting systems
✔️ Manage BAS, payroll & compliance
✔️ Prepare for 2026 payroll and super changes

📞 𝐂𝐎𝐍𝐓𝐀𝐂𝐓 𝐓𝐈𝐓𝐀𝐍 𝐓𝐀𝐗

📞 Phone: 0457 696 620
📧 Email: info@titantax.com.au

🌐 Website: https://titantax.com.au/

📍 Address: Werribee, Victoria, Australia