How to Start a Small Business in Australia with Limited Capital for Expatriates
Australia is well-known as a country that strongly supports the growth of micro and small-to-medium enterprises (SMEs). For expatriates, starting a business in the Land Down Under is not just about chasing financial profit, but also a way to integrate more deeply into the local community.
Many people hesitate to start a business because they imagine it requires massive capital. In reality, Australia offers an ecosystem that allows anyone to start from scratch. By leveraging technology, transparent regulations, and choosing the right service-based industry, you can build promising business assets without draining your savings.
A Roadmap to Legality and Creative Business Ideas for Starting from Zero in Australia
The country has a relatively simple tax system (GST is only 10%), an excellent business environment, and plenty of government support for new entrepreneurs. This article will guide you step-by-step on how to start a small business in Australia without needing a lot of capital.
1. Identify the Right Business Visa for You
It is essential to find the right visa to run a business as an expat. You might consider the Skills in Demand Visa (subclass 482), which officially replaced the Temporary Skills Shortage Visa on December 7, 2024. This visa allows you to work in Australia for up to 4 years with potential pathways to permanent residency.
While high-capital options like the Business Innovation and Investment Visa exist (requiring AUD 800,000 in assets), the Skills in Demand Visa is more realistic for those with limited capital, as it focuses on skills needed in the Australian market and has no age limit.
2. Choose a Business Structure That Fits Your Budget
There are three main structures: Sole Trader, Partnership, and Company. For small businesses with minimal capital, the Sole Trader structure is the most cost-effective. It is easy to register, has low operating costs, and requires no initial capital.
As a Sole Trader, you can run your business using your personal Tax File Number (TFN). You have full control over decisions and simplified administration. While you are personally liable for the business, it is the perfect starting point for low-cost services.
3. Register for an Australian Business Number (ABN) – It’s Free!
An ABN is like an ID card for your business in Australia. It is mandatory for operation, and luckily, registration is free! You can apply online via the Australian Business Register.
Your ABN serves as your official identity for taxes, opening business bank accounts, and invoicing clients. You aren’t required to register for GST until your turnover reaches AUD 75,000 per year, which keeps your early administrative burden light.
Read Also: Easy Guide to Starting a Small Business in Singapore for Expatriates
4. Start with a Private Tutoring Business
Private tutoring is a low-capital idea with great returns. You can offer tutoring in school subjects, foreign languages, or specific skills like music and art. The initial capital is minimal—just a laptop, internet, and learning materials. Tutoring rates in Australia range from AUD 30 to AUD 100 per hour, depending on the subject.
5. Offer Home and Garden Cleaning Services
Cleaning services are always in demand and don’t require much capital. Initial costs for basic supplies (vacuum cleaner, mop, cleaning products) are usually under AUD 500. Average rates for cleaning services are AUD 30 to AUD 50 per hour. A typical house takes 2-4 hours to clean, making this a steady source of income.
6. Launch an E-commerce or Online Store
Expats with limited capital can start using a dropshipping model (which requires no inventory) or sell handmade crafts from their home country. Starting costs can be less than AUD 1,000 if you use free platforms and focus on digital products or dropshipping.
7. Provide Pet Care Services
Australia has a very high rate of pet ownership. You can start with basic equipment costing less than AUD 300. These services are flexible and don’t require a physical shop. Many pet owners are happy to pay AUD 20-50 per hour for dog walking and AUD 40-80 per day for pet sitting.
Read Also: Income Tax in Australia: Tax Saving Tips for Locals & Migrant Workers
Download Transfez App
Transfez App can help you transfer money abroad more quickly and efficiently. Jack Finance can also help your business in making transactions abroad. For those of you who want to send money to relatives who are abroad because they are studying, working, or traveling, Transfez will be ready to help. This app is available on Android as well as iOS.
