ToolsHubProReady to go out on your own? Over 40% of Australian tradies are self-employed. Here's your step-by-step roadmap: from ABN registration to landing your first 10 clients — without going broke in the first 6 months.
Step 1: Get Your ABN & Business Structure
First decision: sole trader, partnership, or company?
- Sole Trader: Simplest, cheapest to set up. You're personally liable for debts. Taxed at marginal rates.
- Company (Pty Ltd): More asset protection. 25% tax rate. Higher setup & accounting costs. Better for $100k+ income.
- Partnership: Two or more people. Shared liability. Less common for tradies.
Step 2: Licences, Tickets & Registrations
- ABN (free — business.gov.au)
- Trade licence (varies by state & trade)
- White Card (mandatory for construction sites)
- Working With Children Check (if doing school/government work)
- Public Liability Insurance ($10M minimum — many builders require $20M)
- Workers Compensation (mandatory if you have employees)
Step 3: Set Up Your Finances
- Separate business bank account (don't mix personal & business)
- Accounting software (Xero, MYOB, or QuickBooks — $15–$30/mth)
- Invoice template with ABN, GST (if registered), payment terms
- GST registration (mandatory if over $75k, optional under)
- Budget for tax — put aside 25–30% of profit
💸 Tax Trap
The #1 mistake new tradies make: spending their entire first big invoice without setting aside tax. Set up a separate "tax account" and transfer 30% of every invoice immediately.
Step 4: Get Insured
- Public Liability: $10M minimum, most builders want $20M (~$60–$120/mth)
- Tool Insurance: Covers theft & damage (~$20–$50/mth)
- Income Protection: Pays if you can't work due to injury (~$50–$150/mth)
- Professional Indemnity: For design/consulting work (~$40–$80/mth)
Step 5: Land Your First Clients
- Tell everyone — friends, family, neighbours, former colleagues
- Google Business Profile (free — how most people find tradies)
- Hipages, Oneflare, ServiceSeeking (paid leads — budget $200/mth to start)
- Facebook community groups — "Your Suburb Community" pages are gold
- Leave business cards at suppliers & hardware stores
- Instagram before/after photos with local hashtags
Use our GST Calculator and Rate Calculator to set your prices right from day one.
Plan Your Finances
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