How to Start a Business in Canberra and the ACT in 2026: Registrations, Leases, Licences and Payroll Tax

Starting a business in Canberra is a little different from anywhere else in Australia. The ACT has no local councils, so the territory government handles both the state-level licences and the approvals councils manage elsewhere. All land is leasehold, so the purpose clause in a Crown lease decides what a property can be used for. And from 1 July 2026 the ACT cut its payroll tax threshold, catching more mid-sized employers. This guide is for anyone setting up in Canberra and the ACT in 2026 — a sole trader in Belconnen, a café company in Braddon, a consultant in Barton or an electrician in Tuggeranong. It takes each step in order, flags what is ACT-specific, and works through examples in A$.

Quick answer

To start a business in Canberra: choose a structure, get a free ABN and register a business name or company nationally, then sort the ACT layer through Access Canberra — food, liquor and construction licences — and check the Crown lease purpose clause before you lease premises. Insure every worker with an approved insurer from day one, and register for payroll tax once Australian wages pass A$1.75 million a year (down from A$2 million on 1 July 2026).

• ABN free; business name A$47 a year; company A$636

• No councils — the ACT Government issues food, planning and outdoor dining approvals

• Workers compensation compulsory for all workers, no small-wages exemption

• Payroll tax 6.75% on wages above A$1.75 million for most employers

• Free advice: up to 4 hours through CBASS

What's national and what's ACT-specific

Business names have been registered nationally by ASIC since 2012, and ABNs, companies, GST and PAYG withholding are federal. So registering the business itself works exactly the same in Canberra as in Sydney or Perth, and our national guide on how to start a business in Australia covers it in detail.

The ACT layer covers licences and registrations through Access Canberra, planning and lease rules administered by ACT Planning, food registration with the Health Protection Service, compulsory workers compensation regulated by WorkSafe ACT, and payroll tax collected by the ACT Revenue Office. As a territory, the ACT has no separate state industrial relations system, so every private-sector employer — including sole traders — follows the national Fair Work rules.

Starting a business in the ACT, in order

Step 1

Choose a structure

Step 2

ABN + business name or company

national

Step 3

Lease and planning check

purpose clause

Step 4

Access Canberra licences

food, liquor, trades

Step 5

Bank, insurance, workers comp

before your first hire

Step 6

Payroll tax

above A$1.75m

Step 1: Choose a structure

Most Canberrans start as a sole trader: you use your own tax file number, pay individual tax rates and keep paperwork light, but you're personally liable for business debts. A company is a separate legal entity, generally limits your liability, and pays 25% if it's a base rate entity, at the cost of ASIC fees and director duties. Partnerships and trusts are the other common options, and many Canberra consultants who contract to government work through a company or trust. Our business structures guide compares them.

The structure has knock-on effects in the ACT. WorkSafe ACT says a Pty Ltd company must hold a workers compensation policy if it has one or more workers, and that obligation continues while the company is registered with an office holder. A company or partnership carrying out licensed construction work needs its own construction occupation licence and must nominate a licensed individual. Payroll tax grouping counts the wages of all related businesses together.

Step 2: National registrations

Apply for your ABN through the Business Registration Service. It's free and online applications are often approved immediately, but ATO checks can take up to 20 business days. Our ABN registration guide covers who is entitled to an ABN — a question that comes up often for Canberra contractors who move between employment and consulting. If you'll trade under a name that isn't your own, register a business name for A$47 a year or A$108 for three.

To incorporate, register a company with ASIC for A$636 after each director gets a director ID. Register for GST within 21 days of your turnover reaching, or being expected to reach, A$75,000 — most consultants billing government agencies pass that quickly — and for PAYG withholding before your first pay run. Open a separate business account; see our business bank account guide.

Step 3: Check the lease and planning rules

This is the step that catches newcomers. In the ACT, land isn't sold freehold — it's held under a Crown lease, usually for 99 years, and each lease has a purpose clause that says what the land may be used for. Your planned business has to fit both the purpose clause and the zoning in the Territory Plan. A shop lease that only allows "shop" use may not allow a restaurant or a gym. If the use you need isn't permitted, the lessee has to apply to vary the lease through a development application under the Planning Act 2023, which can take months, and the government does check that commercial tenants operate within their purpose clauses.

Before you sign a commercial lease, ask the landlord for a copy of the Crown lease, read the purpose clause, and check the Territory Plan zoning for the block. Make the lease conditional on any approvals you need. The same applies to fit-outs: building work needs approval from a licensed building certifier, and signs and outdoor dining on public land need separate permits from the ACT Government.

Before you sign a Canberra lease

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• Get a copy of the Crown lease and read the purpose clause
• Check the Territory Plan zoning for the block
• Ask whether a lease variation or development application is needed
• Confirm fit-out approval with a licensed building certifier
• Make the lease conditional on approvals and licences

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Home-based businesses

Many Canberra businesses start at home, especially consulting, design and online retail. Low-impact home businesses are generally allowed in residential zones, but the Territory Plan limits things like the floor area used, employees who don't live there, signs and customer visits. Food is the big exception. You must register a home food business before you start, and the ACT approves home kitchens only for low-risk, shelf-stable foods — biscuits, cakes and muffins, bread, popcorn, hard lollies, jam and honey. Meat, dairy, cut fruit, cooked rice or pasta, cheese platters, kombucha and ready meals must be made in a commercial kitchen.

Step 4: Access Canberra licences

Access Canberra is the ACT Government's one-stop shop for most business licences and registrations. ABLIS also lists ACT requirements by activity. The ones new businesses most often need:

Construction trades

Under the Construction Occupations (Licensing) Act 2004, builders (including owner-builders), electricians, plumbers, drainers, gasfitters, building surveyors and building assessors must be licensed in the ACT. Trades such as carpentry and bricklaying don't need their own licence. Builders are licensed in classes according to the type of building they can work on, and a company or partnership that provides licensable services must hold its own licence and nominate a licensed individual employee to do the work. Builders moving from interstate can often use mutual recognition, but check the ACT class that matches your existing licence.

Food businesses

Every food business in the ACT — a café, food truck, market stall or home kitchen — must be registered under the Food Act 2001 before it starts trading, unless an exemption applies. Registration fees are tiered by risk, and a public health officer inspects the premises after you apply. Category one and two businesses under the national food safety standards, such as cafés and caterers handling unpackaged high-risk food, must appoint a food safety supervisor whose certificate was obtained within the last 5 years, train food handlers and keep records. The Health Protection Service is on 02 5124 9700.

Step 5: Insurance and workers compensation

Public liability insurance is usually required by landlords and for permits on public land, and professional indemnity is common among Canberra's consultants and often required by government contracts. Workers compensation is the insurance the law demands as soon as you employ.

The ACT scheme is privately underwritten: insurers apply to WorkSafe ACT for approval, and you buy a policy directly from an approved insurer. Every employer must hold a current policy covering all its workers in the ACT — full-time, part-time and casual — and there's no small-wages exemption. A person engaged under a contract for services who personally does the work on a regular and systematic basis is deemed to be a worker, which matters for businesses using regular subcontractors.

Employers also have to display a notice with their insurer and policy details, set up a written return-to-work program, appoint a return-to-work coordinator, keep a register of injuries and notify the insurer within 48 hours of becoming aware of an injury. Penalties for operating without cover include on-the-spot fines, paying the quoted premium for the uninsured period, and liability for up to double the premium avoided for as long as five years. Our workers compensation guide compares the states.

ACT numbers to know (2026)

A$1.75 million

Payroll tax threshold from 1 July 2026

was A$2 million

A$145,833

Monthly payroll tax threshold

6.75%

General payroll tax rate

wages up to A$20m

7 days

Time to apply to register after the month you exceed it

up to 4 hours

Free CBASS business advice

Step 6: Hiring your first employee

ACT employers follow modern awards and the National Employment Standards. From 1 July 2026 the national minimum wage is A$26.44 an hour and super guarantee is 12%, paid with each pay cycle under Payday Super. WorkSafe ACT enforces work health and safety as well as workers compensation, and the ACT has a portable long service leave scheme for some industries, including construction, cleaning and community services — check whether yours is covered.

Before the first shift, register for PAYG withholding, set up Single Touch Payroll, take out your workers compensation policy, set up your return-to-work program, check the award and give the Fair Work Information Statement.

Your first ACT employee — checklist in order

1. 1

   Take out workers compensation

   Buy a policy from an approved insurer before day one — there's no wages exemption.

2. 2

   Register for PAYG withholding

   Do it with the ATO before the first pay run.

3. 3

   Set up return-to-work basics

   Display the insurer notice, nominate a return-to-work coordinator and start an injury register.

4. 4

   Check the award and portable LSL

   Confirm the modern award and whether your industry is in the ACT portable long service leave scheme.

5. 5

   Set up STP and Payday Super

   Report each pay to the ATO and pay super with each pay cycle.

Step 7: Payroll tax in the ACT

The ACT Revenue Office collects payroll tax. On 1 July 2026 the threshold fell from A$2 million to A$1.75 million a year — about A$145,833 a month — and the general rate became 6.75% for employers whose Australian wages are between A$1.75 million and A$20 million. Higher tiered rates apply to employers with Australian wages above A$20 million, and since 1 January 2026 a rate of 8.75% applies above A$150 million. The rate is set by your group's total Australian wages, not just ACT wages.

You only pay payroll tax if your total taxable wages, or your group's, exceed the threshold, but once they do you must apply to register within 7 days after the end of that month. Returns are lodged in the Revenue Office's Self Service Portal, usually monthly by the 7th, with December's due on 14 January and an annual reconciliation due on 28 July. Taxable wages include super, bonuses, fringe benefits, directors' fees and some contractor payments. Our payroll tax by state guide covers grouping and contractors.

Worked examples in A$

A Braddon café run through a company

Sophie and Ahmed set up a company to run a café in Braddon. Their government registration costs are A$636 for the company and free for the ABN, plus A$342 a year for the ASIC annual review; they trade under the company name. Before they sign, they get a copy of the Crown lease and confirm the purpose clause allows a restaurant or café, then engage a building certifier for the kitchen fit-out, register the food business with the Health Protection Service, apply for an outdoor dining permit for footpath tables, and have Sophie complete food safety supervisor training.

They'll employ four casuals from opening, so they buy a workers compensation policy from an approved insurer before the first shift, display the insurer notice and set up a return-to-work program. Their first-year wages of about A$240,000 are far below A$1.75 million, so payroll tax doesn't apply.

A Canberra consultancy caught by the lower threshold

A Canberra IT consultancy pays A$1.9 million of Australian taxable wages a year, all in the ACT. Under the old A$2 million threshold it paid no payroll tax. From 1 July 2026 it's above the new A$1.75 million threshold, so it had to register within 7 days after the first month its wages passed A$145,833. Its annual payroll tax is (A$1,900,000 − A$1,750,000) × 6.75% = A$10,125.

The two ACT examples side by side

Item	Braddon café company	Canberra IT consultancy
ABN	free	free
Company	A$636 + A$342 a year	Already incorporated
Lease check	Purpose clause must allow a café	Office use already permitted
Workers compensation	Yes — from the first casual	Yes
Payroll tax	No — under A$1.75 million	About A$10,125 a year (nil before July 2026)

ABN

Braddon café company

free

Canberra IT consultancy

free

Company

Braddon café company

A$636 + A$342 a year

Canberra IT consultancy

Already incorporated

Lease check

Braddon café company

Purpose clause must allow a café

Canberra IT consultancy

Office use already permitted

Workers compensation

Braddon café company

Yes — from the first casual

Canberra IT consultancy

Yes

Payroll tax

Braddon café company

No — under A$1.75 million

Canberra IT consultancy

About A$10,125 a year (nil before July 2026)

Grants and free support in the ACT

There's no general ACT grant for starting a business; ACT Government programs are targeted and open in rounds, so check the ACT Government's business grants listings and the business.gov.au finder, and read our small business grants guide for federal programs.

The most useful free support is the Canberra Business Advice and Support Service (CBASS). Funded by the ACT Government and delivered by Lighthouse Business Innovation Centre, it gives new and established businesses up to 4 hours of free, tailored advice — useful for testing a business idea, planning finances, getting legal referrals, managing growth or deciding to change or close a business. Book on (02) 6163 8301. Access Canberra can answer licensing questions, and the Health Protection Service advises on food safety before you apply.

Common mistakes when starting in Canberra

Leasing premises without reading the purpose clause. A shop lease may not allow a café or gym. Fix: get the Crown lease and check the purpose clause and zoning before signing.

Planning a home food business with high-risk products. Home kitchens are approved only for low-risk foods. Fix: use a commercial kitchen for anything that needs refrigeration.

Using the old payroll tax threshold. Many guides still say A$2 million. Fix: track wages against A$145,833 a month from 1 July 2026.

Treating regular subcontractors as outside workers compensation. Regular, systematic contractors can be deemed workers. Fix: ask your insurer whether they need to be declared.

Hiring before the policy is in place. There's no wages exemption. Fix: buy cover before the first shift.

Official links

• ACT Revenue Office — About payroll taxThreshold, rates and registration
• Business Registration ServiceABN, business name and tax registrations
• WorkSafe ACT — Employer obligationsWorkers compensation duties
• ACT Government — Selling food from a home-based businessFood registration rules
• ACT Planning — Construction licencesWho needs a licence
• ACT Planning — Crown leasesPurpose clauses and variations
• CBASS — free business adviceUp to 4 hours free

What to do next

Estimate your set-up costs with our startup cost calculator, apply for your ABN, and book a free CBASS session before you commit to premises. If you're comparing locations, see our guides to starting a business in NSW, Victoria and Tasmania.

This is general information, not legal or tax advice — confirm on the official source or with a professional.

Frequently asked questions

Do I need to register my business with the ACT Government?

Not in general. Your ABN, business name and company are national registrations with the Business Registration Service and ASIC. The ACT Government comes in for licences — food, liquor, construction trades and others through Access Canberra — planning and lease approvals for your premises, compulsory workers compensation once you employ, and payroll tax once Australian wages exceed A$1.75 million.

What is the ACT payroll tax threshold from 1 July 2026?

From 1 July 2026 the ACT threshold fell from A$2 million to A$1.75 million a year, or about A$145,833 a month. The general rate is 6.75% for employers with Australian wages up to A$20 million, with higher rates for larger employers. You must apply to register within 7 days after the end of the month you go over the threshold.

Can I run a business from home in Canberra?

Often, but check two things. First, all ACT land is leasehold, so your Crown lease's purpose clause and the Territory Plan must allow the activity. Second, licences still apply — a home food business must be registered under the Food Act 2001, and home kitchens are approved only for low-risk foods like biscuits, cakes, bread and jam.

Do I need workers compensation insurance in the ACT?

Yes. Every ACT employer must hold a current workers compensation policy with an approved insurer for all its workers — full-time, part-time and casual — and there's no small-wages exemption. Contractors who work for you regularly and systematically can be deemed workers. Uninsured employers pay the missed premium and can be liable for double the avoided premium for up to five years.

Where can I get free business advice in Canberra?

The ACT Government funds the Canberra Business Advice and Support Service (CBASS), delivered by Lighthouse Business Innovation Centre. New and established businesses can get up to 4 hours of free, tailored advice on finances, growth, legal referrals, wellbeing and changing or closing a business. Book by phone on (02) 6163 8301 or through the ACT Government website.

Who issues business licences in the ACT?

Most ACT licences and registrations go through Access Canberra — including liquor licences, construction occupation licences for builders, electricians, plumbers and gasfitters, and food business registration with ACT Health's Health Protection Service. Because the ACT has no local councils, the territory government also handles the approvals that councils manage elsewhere, such as planning and outdoor dining.

Sources & verification

Figures on this page were checked against the sources below when it was last reviewed on 12 October 2026. Each rate and limit is stored once with its own official source and review date, and official update channels are monitored daily so changes are picked up. How we verify

1. 1.About payroll tax — ACT Revenue Office · accessed 12 October 2026
2. 2.Taxation Administration (Amounts and Rates—Payroll Tax) Determination 2026 — explanatory statement — ACT Legislation Register · accessed 12 October 2026
3. 3.Who is an employer, and the employer's obligations — WorkSafe ACT · accessed 12 October 2026
4. 4.Selling food from a home-based business — ACT Government · accessed 12 October 2026
5. 5.Canberra Business Advice and Support Service (CBASS) — ACT Government · accessed 12 October 2026
6. 6.Construction licences — ACT Planning · accessed 12 October 2026
7. 7.Crown leases — ACT Planning · accessed 12 October 2026
8. 8.Food safety supervisor — Food Standards Australia New Zealand · accessed 12 October 2026