How to Start a Business in Victoria in 2026: Registrations, Council Permits, WorkSafe and Payroll Tax

Victoria is one of the easier states to start a business in on paper — the registrations are national, the payroll tax threshold is generous for small employers, and Business Victoria publishes a lot of free guidance. In practice, most of the friction for Victorian start-ups is local: council planning permits, food premises registration and getting WorkSafe insurance in place at the right time. This guide is for anyone setting up in Victoria in 2026, from a Melbourne laneway café to a regional tradie or an online seller in Geelong. It walks through each step in order, flags what's Victorian rather than national, and works through examples in A$.

Quick answer

To start a business in Victoria: choose a structure, get a free ABN and register a business name or company nationally, then use ABLIS to list your Victorian and council licences. Check council planning and food permits before signing a lease, register with WorkSafe Victoria once you employ (unless remuneration is A$7,500 or less with no apprentices), and register for payroll tax only once wages pass A$1 million a year.

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

• Food premises: classes 1, 2, 3A and 3 register with council; class 4 notifies

• Temporary and mobile food stalls use FoodTrader

• WorkCover average premium rate 1.8% for 2026-27

• Payroll tax 4.85%, or 1.2125% for regional employers

What's national and what's Victorian

You don't register a business "with Victoria". Since 2012 business names have been registered nationally by ASIC, and ABNs, companies, GST and PAYG are federal. Victoria's old state business names register no longer exists. So the first steps are the same as anywhere in Australia, and our national guide on how to start a business in Australia covers them in depth.

The Victorian layer is made up of state licences and registrations (liquor, building, plumbing, some occupational licences), WorkSafe Victoria insurance, payroll tax through the State Revenue Office (SRO), and — most important for anyone with premises — your local council, which administers planning, building, food and public health permits.

Starting a business in Victoria, in order

Step 1

Choose a structure

Step 2

ABN + business name or company

national

Step 3

ABLIS licence list

state + council

Step 4

Council permits

planning, food, signs

Step 5

Bank, insurance, WorkSafe

before you hire

Step 6

Payroll tax

only above the threshold

Step 1: Pick a structure

Most Victorians start as a sole trader — cheap, simple and taxed at individual rates, but with unlimited personal liability. A company is a separate legal entity with limited liability and a 25% base rate entity tax rate, at the cost of ASIC fees, director duties and more bookkeeping. Partnerships suit two or more people trading together, and trusts are common for family businesses.

In Victoria the structure choice has a WorkSafe twist. If you trade as a sole trader or partner and employ nobody, you don't register for WorkCover. But if you run a company and the company pays you wages, WorkSafe says you are a worker of your own company — and the company must register once remuneration passes the exemption. Our sole trader guide and company registration guide explain the trade-offs.

Step 2: National registrations

Apply for an ABN through the Business Registration Service — it's free, and online applications are often approved immediately, though checks can take up to 20 business days. See our ABN registration guide. If you'll trade under a name other than your own, register a business name for A$47 a year or A$108 for three. Business Victoria also suggests checking IP Australia's trade mark search before you settle on a name, so you don't build a brand you'll later have to change.

To incorporate, register a company with ASIC for A$636 once each director has a director ID. Register for GST within 21 days of expecting turnover of A$75,000 or more, and for PAYG withholding before your first pay run. Then open a business account — our business bank account guide covers what banks ask for.

Step 3: Find your Victorian licences with ABLIS

Business Victoria points new businesses to ABLIS, the Australian Business Licence and Information Service, to find the local, state and federal licences, registrations and permits for their activity and location. Some licences come from your council; others come from state bodies — for example, Liquor Control Victoria if you want to sell alcohol for consumption on your premises.

Building work

In Victoria, domestic building work worth more than A$10,000 (labour, materials and GST) — including labour, materials and GST, across the whole project — must be done by a registered building practitioner. Some work, such as re-stumping, re-blocking, demolition and any work needing a building permit, needs a registered builder at any price. Registration is now handled by the Building and Plumbing Commission, which took over from the Victorian Building Authority; older guides still name the VBA. The Commission registers individuals, so if you build through a company, a director must be registered, and the company itself needs registration to sign major domestic building contracts in its own name.

Step 4: Council permits — planning, building and food

Council is where Victorian start-ups lose the most time. Business Victoria recommends contacting the council's planning department early and organising a pre-application meeting with a planner. Ask three questions before signing a lease: does the zoning allow your use, does the change of use need a planning permit, and does your fit-out need a building permit? Restaurants, gyms, childcare and anything with late trading or liquor are the usual permit triggers. Councils also issue permits for signs, footpath trading and outdoor dining.

Food businesses: classes and FoodTrader

Victoria's Food Act 1984 sorts food premises into classes by risk. Class 1 covers hospitals, childcare and aged care serving high-risk food. Class 2 covers premises handling high-risk unpackaged food — most cafés and restaurants. Class 3A covers some accommodation and home-made hot-fill products, class 3 covers unpackaged low-risk food or pre-packaged high-risk food, and class 4 covers low-risk activities. Classes 1, 2, 3A and 3 must register with council; class 4 only needs to notify.

For a fixed shop or kitchen, you apply to your council, usually with a floor plan, and an environmental health officer inspects the premises before you can trade. Registration doesn't transfer when you buy an existing food business — the new owner must register. Classes 1, 2 and 3A generally need a nominated food safety supervisor, and council fees vary widely by class and council. Temporary and mobile food businesses — market stalls, food trucks — register or notify through FoodTrader, the state's online system, and lodge a Statement of Trade for each event; allow at least a couple of weeks.

Home-based businesses

Plenty of Victorian businesses start at the kitchen table. Many low-impact home offices — a bookkeeper, a designer, an online store shipping a few parcels a day — can operate without a planning permit, but the rules are set in each council's planning scheme and usually limit the floor area used, the number of non-resident staff, customer visits, signage and vehicles. Making food at home to sell is different: you'll need to register or notify the council for the right food class, and your kitchen will need to meet the food premises standards. Check with the council's planning and environmental health teams, and with your landlord or owners corporation, before you start trading from home.

Step 5: WorkSafe Victoria WorkCover insurance

WorkSafe says you must register for WorkCover insurance if you or your company employ any workers in Victoria. The exemption is narrow: you don't need to register if you have no apprentices and don't pay, and aren't liable to pay, more than A$7,500 in remuneration in a financial year. Take on even one apprentice or trainee and you must register, whatever your wages. Not registering when you should can mean penalties plus reimbursing WorkSafe for compensation paid to your injured workers.

Premiums are calculated on your rateable remuneration and your industry rate. The Victorian Government kept the average premium rate at 1.8% of remuneration for 2026-27, the fourth year at that level — but your rate depends on your industry classification and, as you grow, your claims history. WorkSafe Advisory is on 1800 136 089. Our workers compensation guide compares the states.

Victorian numbers to know (2026)

A$1 million

Payroll tax annual deduction

A$83,333 a month

4.85%

Payroll tax rate

1.2125% regional

A$7,500

WorkCover: remuneration at or below which no registration is needed

no apprentices

1.8%

WorkCover average premium rate

2026-27

A$10,000 (labour, materials and GST)

Domestic building work needing a registered builder

above this value

Step 6: Hiring your first employee

Victorian private-sector employers are in the national Fair Work system, so award wages and the National Employment Standards apply as in other states. 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. Victoria adds its own layer through WorkSafe (insurance and health and safety enforcement under the Occupational Health and Safety Act 2004) and the Wage Inspectorate Victoria, which enforces state laws such as child employment and long service leave.

Before the first shift: register for PAYG withholding, set up Single Touch Payroll, register with WorkSafe if you'll pass the exemption or are hiring an apprentice, check the right modern award, and give the Fair Work Information Statement. Employing anyone under 15 in Victoria generally needs a child employment licence from the Wage Inspectorate.

Step 7: Payroll tax in Victoria

Payroll tax is collected by the State Revenue Office. Victoria allows an annual deduction of A$1 million — A$83,333 a month for monthly returns — and charges 4.85% on wages above it. Taxable wages include super, bonuses, fringe benefits, directors' fees and some contractor payments. The deduction phases out when Australian wages are between A$3 million and A$5 million, and large employers pay surcharges once national wages exceed A$10 million.

Regional Victoria gets a big concession. An employer that pays at least 85% of its Victorian wages to employees based in regional Victoria pays 1.2125% — a quarter of the metropolitan rate. If you pay wages in another state too, Victoria only lets you claim a share of the deduction, and related businesses are grouped. Our payroll tax by state guide explains grouping and the contractor rules.

Worked examples in A$

A Ballarat bakery-café run through a company

Sam and Lee incorporate a company to open a bakery-café in Ballarat. Government registration costs are A$636 for the company and free for the ABN, plus A$342 a year for the ASIC annual review. Before they sign the lease, they meet a council planner to confirm the shop can be used as a café with indoor seating, then apply for a building permit for the kitchen fit-out. Their café handles high-risk unpackaged food, so it's a class 2 premises: they register with the council, nominate a food safety supervisor and pass the pre-opening inspection.

They'll employ five staff with about A$260,000 of remuneration in the first year, so the company registers with WorkSafe before the first shift. At the average rate of 1.8%, that's about A$4,680 a year — an indicative figure only, because their premium depends on the bakery industry rate. Payroll tax doesn't apply: their wages are well under the A$1 million deduction.

A Melbourne firm crossing the payroll tax threshold

A Melbourne digital agency grows to A$1.4 million of taxable wages a year, including super, all paid in Victoria. It must register with the SRO once monthly wages pass A$83,333. Its annual payroll tax is (A$1,400,000 − A$1,000,000) × 4.85% = A$19,400. If the same business were a regional employer — at least 85% of its Victorian wages paid to regional staff — the tax would be A$400,000 × 1.2125% = A$4,850.

The same A$1.4m payroll in Victoria

	Metropolitan employer	Regional employer
Deduction	A$1 million	A$1 million
Wages above deduction	A$400,000	A$400,000
Rate	4.85%	1.2125%
Annual payroll tax	A$19,400	A$4,850

Deduction

Metropolitan employer

A$1 million

Regional employer

A$1 million

Wages above deduction

Metropolitan employer

A$400,000

Regional employer

A$400,000

Rate

Metropolitan employer

4.85%

Regional employer

1.2125%

Annual payroll tax

Metropolitan employer

A$19,400

Regional employer

A$4,850

Grants and free support in Victoria

There's no general Victorian grant for starting a business. In late August 2026 the government opened two A$5,000 programs — the Multicultural Business Skills Fund, for trader groups, chambers and industry bodies running skills projects for diverse small business owners, and the Shop Local Business Fund, for business associations and councils running local campaigns, expos and workshops. Both fund groups rather than individual businesses. Expressions of interest for the free Business Skills Mentoring program, which offered three one-hour mentoring sessions, closed on 31 August 2026. Check the Business Victoria grants page for what's open now, and our small business grants guide for federal programs.

Business Victoria's free guidance, workshops and the Small Business Bus, which brings one-on-one sessions with a business adviser to towns around the state, are useful for start-ups. Many councils run their own start-up workshops and small grants for local businesses. The Victorian Small Business Commission helps resolve disputes — retail and commercial leases, late payments and disputes with other businesses — through low-cost mediation.

Common mistakes when starting in Victoria

Signing a lease before a planning check. A café, gym or bar may need a planning permit the landlord never mentioned. Fix: book a pre-application meeting with the council planner first.

Assuming a food registration transfers when you buy a business. It doesn't. Fix: apply for a new registration before settlement and allow time for inspection.

Directors forgetting they're workers. If your company pays you wages, it must register with WorkSafe once remuneration exceeds A$7,500. Fix: register the company before the first pay run.

Hiring an apprentice without registering. Apprentices trigger WorkCover registration at any wage level. Fix: register before their first day.

Quoting building work just over the limit without registration. A A$12,000 deck needs a registered builder. Fix: register, or keep jobs genuinely within your licence scope.

Ignoring the regional payroll tax rate. A business with most staff in regional Victoria may qualify for 1.2125%. Fix: check the 85% test when you register with the SRO.

Official links

• Business Victoria — Licences and registrationsABLIS and common registrations
• Business Registration ServiceABN, business name and tax registrations
• WorkSafe Victoria — Do I need to register?Who must insure and the A$7,500 exemption
• SRO Victoria — Payroll tax current ratesRate, regional rate, deduction and phase-out
• FoodTraderTemporary and mobile food premises
• Building and Plumbing Commission — Domestic building workWhen a registered builder is required
• Business Victoria — Grants and programsCurrent Victorian programs

What to do next

Map your set-up costs with our startup cost calculator, apply for your ABN, and book a meeting with your council before you commit to premises. If you're weighing up where to set up, compare our guides to starting a business in NSW and Queensland.

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

Frequently asked questions

How do I register a business in Victoria?

You register nationally, not with Victoria. Apply for a free ABN and, if you need one, a business name (A$47 a year) through the Business Registration Service, or register a company with ASIC for A$636. Victoria and your council then handle licences, permits, WorkSafe insurance and, once wages exceed A$1 million, payroll tax.

Do I need a council permit to start a business in Victoria?

Often. Councils decide whether your premises can be used for your business (planning permits), approve building works, register food premises, and issue permits for signs and footpath trading. Some home-based businesses need no permit. Speak to the council's planning department before you sign a lease — a pre-application meeting can avoid months of delay.

When do I need WorkCover insurance in Victoria?

You must register with WorkSafe Victoria if you or your company employ workers, unless you have no apprentices and don't pay more than A$7,500 in remuneration in a financial year. If your company employs you, you are a worker of the company. Sole traders and partners with no employees don't need to register.

What is the payroll tax threshold in Victoria?

Victoria's annual payroll tax threshold (deduction) is A$1 million, or A$83,333 a month, and the rate is 4.85%. Regional employers pay 1.2125%. The deduction phases out for Australian wages between A$3 million and A$5 million, so larger employers pay on all wages.

How do I register a food business in Victoria?

Work out your food premises class (1, 2, 3A, 3 or 4). Classes 1, 2, 3A and 3 must register with their council; class 4 only needs to notify. Fixed premises apply through the council and are inspected before trading. Temporary and mobile food businesses register or notify through FoodTrader and need a Statement of Trade for each event.

Are there small business grants in Victoria right now?

Not general start-up grants. In August 2026 the Victorian Government opened A$5,000 grants for business associations, trader groups and councils — the Multicultural Business Skills Fund and the Shop Local Business Fund — rather than for individual businesses. Check the Business Victoria grants page for what's open and the business.gov.au finder for federal programs.

Sources & verification

Figures on this page were checked against the sources below when it was last reviewed on 11 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.Licences and registrations — Business Victoria · accessed 11 October 2026
2. 2.Set up your premises — Business Victoria · accessed 11 October 2026
3. 3.Do I need to register for WorkCover insurance? — WorkSafe Victoria · accessed 11 October 2026
4. 4.Apprentices and trainees — WorkSafe Victoria · accessed 11 October 2026
5. 5.Payroll tax (current rates) — State Revenue Office Victoria · accessed 11 October 2026
6. 6.Changes to payroll tax threshold — State Revenue Office Victoria · accessed 11 October 2026
7. 7.What is domestic building work? — Building and Plumbing Commission · accessed 11 October 2026
8. 8.New grants to help Victoria's small businesses grow — Premier of Victoria · accessed 11 October 2026
9. 9.Food business classifications — Bass Coast Shire Council · accessed 11 October 2026