It’s no easy task to turn your business plan into a real, functioning company. It takes not only a great deal of effort but also a considerable financial investment. Without a firm grasp on the outlay required to launch a company, you run the risk of seeing it sink before it ever gets off the ground due to unforeseen costs. One of the major costs you will surely incur at the start of a business in Australia is your business permit which is the permit needed to transact in Australia. For this reason, we will be taking a look at the expenses you will incur starting your business as well as your business permit so you can easily plan your business accordingly.
Initial cost of starting a business in Australia
First off, let’s look at the mandatory costs associated with registering a business in Australia, which is your business permit. Although there’s no fee for obtaining an ABN (Australian Business Number) or getting a TFN application, you will need to pay a fee to register as a company and obtain a business name and get a business permit. You can register as a company and get a permit for a fee of $506, while obtaining a business name costs $37 for one year or $87 for three years.
Other Startup Business Costs
There’s a wide variety of costs to consider beyond the initial investments of getting a business permit which is required to start a business in Australia. Typical examples additional of costs for a new business include the following:
Rent: Rent is a major expense that needs to be accounted for when starting a business. The cost of renting a commercial space is highly variable and is determined by factors such as the location and square foot of the space you require.
Salaries: Wages for employees are perhaps the most crucial outlay of money to plan for. However, depending on the positions you’re filling, you may need to offer far higher salaries to entice the calibre of candidates your business needs to thrive.
Professional fees: It’s also important to consider the costs associated with outsourcing any mission-critical business processes. Legal and accounting fees can add up quickly, but they’re an investment that will pay dividends later on if your start-up gets the regulatory and administrative side of things right from the beginning.
Insurance: Paying for insurance is essential, even if your company has modest risk protection needs. Public liability, professional indemnity, and product liability insurance are among the most helpful forms of coverage for Australian firms. Your claim history, the nature of your business, and the insurance company you choose will all have an impact on the final cost.
As you can see, the cost of getting a business permit in Australia is not that expensive. However, there are additional costs to starting a business in Australia every business needs to consider. This will help with the overall preparations and success of the business.