How to Start a Cleaning Business in Australia

Step 1: Decide what kind of cleaning you will sell

Before you register anything, pick a starting point. House cleaning, office cleaning, end of lease cleaning, carpet cleaning and pressure cleaning all work differently. They need different gear, different hours and different customers.

Most people start small, with one type of job, and add more later. A narrow start makes it easier to quote, to buy only the supplies you need and to describe your service in one sentence.

Write down who you will clean for, which suburbs you will cover and how many hours a week you can work. These notes are not a formal business plan. They simply give you a clear picture before you spend money on registrations and insurance.

Step 2: Get an ABN if you need one

An ABN is "a unique 11-digit number that identifies your business to the government, other businesses and the public." ¹

Do you need an ABN? The official page says: "Not everyone needs an ABN. To get one you need to be running a business or other enterprise." ¹ So the answer depends on whether what you do counts as running a business. If you are unsure, the Australian Business Register has an entitlement check, and an accountant can help.

On cost, business.gov.au says: "It's free to register for an ABN through the Australian Government's Australian Business Register (ABR)." ¹

Step 3: Check whether your business name needs registering

If you trade under your own full name, for example "Sam Lee", you may not need to register anything. If you trade under a different name, ASIC's rule applies. It says: "You must register a business name if you run a business in Australia and are not trading under your own name." ²

ASIC also says: "There is a fee to register a business name." ² Check ASIC's page for the current amount, because fees change. If you are still choosing, see our ideas and checks for naming a cleaning business.

Step 4: Know when GST applies

GST is a tax of 10% on most goods and services sold in Australia. Whether you must charge it depends on your turnover. For a new business, business.gov.au says "you should register if you expect your GST turnover to reach $75,000 in the first year." ³

It adds a deadline. "You have to register for GST within 21 days of becoming aware that your GST turnover will go over the threshold." ³ GST turnover is business income, not profit, so work from what you expect to invoice.

Below the threshold you may choose to register, but registering brings extra duties, such as issuing tax invoices. Ask an accountant which choice suits your circumstances.

Step 5: Sort out insurance

business.gov.au says: "By law, you may need some insurances to run your business." ⁴ Two types it lists are public liability and workers compensation. First, there is public liability insurance, "which some states and territories need for certain occupations". ⁴ Second, there is workers compensation insurance, "if you have employees". ⁴

For workers compensation, the page says: "Employers must get workers compensation insurance from an authorised insurer." ⁴ Rules differ by state and territory, so check with your state regulator.

This is general information. An insurance broker can explain which policies fit the jobs you plan to do.

Count your start-up costs

ASIC says there is a fee to register a business name, but fees like that are only part of the cost. ² Make your own list: cleaning supplies and equipment, transport, insurance, any registration fees, and software for quotes and invoices if you want it.

Prices change and vary by area, so get current quotes from suppliers and insurers rather than relying on a number from a web page. Keep receipts from day one. They make tax time easier, and your accountant can tell you what is claimable for your business.