Turning your business plan into an honest, functioning company is no easy task. It takes a great deal of effort and a considerable financial investment. Without a firm grasp of the outlay required to launch a company, you risk seeing it sink before it gets off the ground due to unforeseen costs. One of the high costs you will undoubtedly 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 looking at the expenses you will incur starting your business and your business permit so you can easily plan your business accordingly.
The initial cost of starting a business in Australia
First, 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 beyond the initial investments of getting a business permit required to start a business in Australia. Typical examples of additional costs for a new business include the following:
Rent: Rent is a significant 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 necessary 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 of 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 Australian firms’ most helpful forms of coverage. Your claim history, the nature of your business, and the insurance company you choose will all impact the final cost.
As you can see, 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.