Business Licenses Australia: What They Are, Industry Requirements & How to Apply

Setting up a business in Australia involves more than registering a company—it often requires obtaining the correct business licenses Australia and permits. From hospitality and construction to retail and food services, certain industries must hold specific licences to comply with federal, state, and local regulations. This guide explains what a business licence is, why it’s essential, and how you can ensure your business meets all legal requirements.

Know your Aussie Business License requirements

1. What Is a Business Licenses Australia and Why It’s Required

A business licence is an official authorisation issued by government authorities that allows a business to operate legally within a particular industry or location. These licences ensure businesses meet safety, health, and regulatory standards, protecting both consumers and the wider community.

Certain industries—such as food services, construction, and hospitality—are legally required to hold a licence before commencing operations. Operating without the appropriate licence can lead to fines, legal action, and potential closure of the business.

Obtaining a licence is not only a compliance obligation but also demonstrates professionalism and credibility to customers, partners, and regulatory agencies. Each licence type is tied to specific laws, regulations, and local council rules, meaning businesses must understand which licences apply to their sector and location.

2. Types of Licences by Industry

In Australia, the type of business licence required depends on your industry. Certain sectors are regulated to ensure safety, legal compliance, and consumer protection. Here’s a breakdown by major industries:

a. Hospitality

Cafes, restaurants, and bars often need a hospitality licence, including liquor licences and food handling permits. For example, a bar selling alcohol must obtain a licence from the state authority and comply with food safety standards.

b. Construction

Contractors and building companies generally require a building or contractor licence to ensure work meets safety regulations and building codes. Specialised trades like electrical or plumbing may require additional licences.

c. Retail

Retail businesses selling regulated products such as tobacco, firearms, or pharmaceuticals need a licence. This ensures legal compliance and consumer protection.

d. Food Business

Food businesses must register with local councils and obtain food handling permits. Some states require extra licences depending on the type and scale of the operation.

Which businesses require a license?

e. Other Regulated Industries

Industries like healthcare, transport, and real estate also require specific licences. Examples include taxi operators, freight companies, and real estate agents who must hold the appropriate licences to operate legally.

3. Difference Between Business Licences, Permits and Local Council Approvals

Understanding the distinctions between licences, permits and local council approvals is essential for running a compliant business in Australia. Each serves a different purpose and applies in different situations.

Type	What It Is	When It’s Required	Examples / Notes
Business Licence	Formal authorisation issued by state or federal authorities to operate in a regulated industry. Ensures compliance with legal, safety, and professional standards.	Required for industries such as hospitality, construction, healthcare, financial services.	Example: Liquor licence for bars, builder’s licence for construction.
Permit	Authorisation for a specific activity rather than the whole business.	Needed for one-off activities, temporary operations, or specific products/services.	Example: Food handling permit, special events permit, temporary street stall.
Local Council Approval	Approval from the local council for land use, building compliance, signage, or environmental regulations.	Required when setting up premises, making renovations, or conducting certain local activities.	Example: Planning permit for a café fit-out, approval for shop signage.

4. How to Use the Business Licence Finder

Follow these simple steps to find the licences your business may need:

1. Visit the tool – Go to business.gov.au/licences.

2. Enter business details – Select your industry, type of business, and business activities.

3. Choose your location – Include your state, territory, and local council area.

4. Review suggested licences – Check the list of licences, permits, and approvals tailored to your business.

5. Check requirements – Look at eligibility, costs, issuing authority, and application links for each licence.

6. Save or print results – Keep a record to guide your applications and compliance.

Tips:

• Verify your industry selection to cover all activities.

• Consider your business structure; it may affect licence requirements.

• Pay attention to state-specific licences via direct links.

• Start early to allow for processing times and avoid delays.

Business licenses finder

Using these steps ensures you meet business licenses Australia requirements efficiently and stay compliant.

5. State-Specific Licensing Requirements

Business licence requirements in Australia can vary depending on your state or territory. Here are some key highlights for the major states:

a. New South Wales (NSW)

• Construction and Trades – Contractors must hold a licence from NSW Fair Trading.

• Food Businesses – Registration with local council and NSW Food Authority is required.

• Liquor Licensing – Managed by Liquor & Gaming NSW for bars, restaurants, and clubs.

b. Victoria (VIC)

• Building and Plumbing – Licences issued by the Victorian Building Authority (VBA).

• Hospitality – Food premises require registration with the local council; liquor licences are now regulated by the Victorian Liquor Commission (VLC) (supported by Liquor Control Victoria staff).

• Retail – Certain industries, such as second-hand dealers, require state permits.

c. Queensland (QLD)

• Trades and Construction – QBCC licences required for builders, plumbers, and electricians.

• Food Services – Must register with local council under the Food Act 2006.

• Liquor & Gaming – Licences regulated by the Office of Liquor and Gaming Regulation (OLGR).

d. Other States & Territories (SA, WA, TAS, NT, ACT)

• South Australia (SA) – Consumer and Business Services (CBS) regulate trades and hospitality.

• Western Australia (WA) – Department of Mines, Industry Regulation and Safety (DMIRS) issues trade licences; local councils handle food registration.

• Tasmania (TAS), Northern Territory (NT), ACT – Each has its own local regulatory authorities; always check ABLIS for specific requirements.

Tips:

• Use the Australian Business Licence and Information Service (ABLIS) to filter licences by state, industry, and business type.

• Always check if your business requires both state and local council approvals (e.g., for food, signage, or operating from home).

• Keep up to date with changes in state legislation to remain compliant.

6. Penalties for Operating Without a Licence

Operating a business without the required licence in Australia can result in serious consequences:

• Fines and Penalties – Businesses may face on-the-spot fines or substantial penalties issued by state authorities.

• Legal Action – In severe cases, regulators can take legal action, potentially leading to court proceedings.

• Business Closure – Authorities can order temporary or permanent closure of the business until compliance is achieved.

• Industry-Specific Examples:

  • Hospitality: Serving alcohol without a liquor licence can incur fines up to tens of thousands of dollars.

  • Construction: Performing trades without a QBCC or VBA licence may lead to both fines and being banned from the industry.

  • Food Business: Operating a restaurant or café without registering with local council can result in fines and forced closure.

Tip: Always verify your licence requirements using the Business Licence Finder before commencing operations.

7. Business Licence Application Process and Approval Times

Registering for a business licence generally follows these steps:

1. Identify Required Licences – Use the Business Licence Finder or check state/territory government websites.

2. Prepare Documents – Provide identification, proof of business structure, and any industry-specific qualifications.

3. Submit Application – Applications are submitted online or directly to the relevant state authority.

4. Pay Fees – Fees vary depending on licence type and state (check the relevant government portal).

5. Assessment – Authorities review the application, which may include background checks or inspections.

6. Approval & Issuance – Upon approval, you receive your licence certificate or registration details.

Business License Process

a. Average Approval Times

• Standard licences: 1–4 weeks.

• Trades and regulated professions: 2–6 weeks (may be longer for inspections or additional checks).

• Liquor licences: 4–12 weeks depending on the complexity of the application.

b. Tips to Avoid Delays

• Ensure all documentation is complete and accurate.

• Check if state-specific requirements (such as training certificates) are needed.

• Submit applications well before starting business operations.

Conclusion

Understanding and obtaining the correct business licences is essential for compliance and the smooth operation of your business in Australia. Each industry and state has specific requirements, and failure to secure the right licences can result in fines, legal action, or closure. Using tools like the Business Licence Finder and following the outlined application process helps ensure your business meets all regulatory obligations.

For professional guidance on setting up your business, including compliance with all licence requirements, contact Gordon QC Du & Associates. Established in 2003, our firm specialises in tax, accounting, and business registration services, led by Mr Gordon with over 20 years of experience. Explore our expert services and learn more about starting a company in Australia: Start a Company in Australia: Setup Requirements, Structure, Costs.