How to Start a Business in Western Australia in 2026: Registrations, Licences, WorkCover and Payroll Tax

Starting a business in Western Australia means working with three layers of government. The Commonwealth handles your ABN, business name, company and tax. The WA Government licenses trades and activities, runs the workers compensation system through WorkCover WA and collects payroll tax. Your local government decides what you can do in your premises and registers food businesses. This guide is for anyone setting up in WA in 2026 — a sole trader in Joondalup, a café company in Fremantle, a tradie in Bunbury or an online seller in Geraldton. It sets out each step in order, flags what is WA-specific, and works through examples in A$.

Quick answer

To start a business in WA: choose a structure, get a free ABN and register a business name or company nationally, then use the SBDC Business Licence Finder to list your WA and local government licences. Check planning and food approvals with your local government before you sign a lease, insure every worker with an approved insurer from your first hire — WA has no small-wages exemption — and register for payroll tax only once Australian wages pass A$83,333 in a month.

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

• Registered building contractor needed for permit work over A$20,000

• WorkCover WA average recommended premium rate 1.931% for 2026-27

• Payroll tax 5.5% above A$1 million, phasing out by A$7.5 million

• Free SBDC advice on 133 140

What's national and what's WA-only

People often search for how to "register a business in WA", but there is no general state business register. Business names have been registered nationally with ASIC since 2012, when Western Australia's own register closed, and ABNs, companies, GST and PAYG withholding are all federal. That means the first half of the job is the same in Perth as in Sydney or Hobart. Our national guide on how to start a business in Australia covers it in depth.

What's specific to WA is the second half: occupational and activity licences, local government approvals, WorkCover WA insurance, payroll tax through RevenueWA, and the free support the Small Business Development Corporation (SBDC) provides. Many WA licence applications ask for your ABN or ACN, and a food business notification asks who the proprietor is, so it pays to finish the national steps first.

Starting a business in WA, in order

Step 1

Choose a structure

Step 2

ABN + business name or company

national

Step 3

Business Licence Finder

WA + local government

Step 4

Local government approvals

planning, food, signs

Step 5

Bank, insurance, WorkCover

before your first hire

Step 6

Payroll tax

only above the threshold

Step 1: Choose a business structure

Most West Australians start as a sole trader. It's cheap, you use your own tax file number and pay individual tax rates, and there's very little paperwork — but you're personally liable for the business's debts. A company is a separate legal entity that generally limits your liability and pays the company tax rate of 25% if it's a base rate entity, 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. Our business structures guide compares all four.

In WA the structure decision flows into licensing and insurance. A company that wants to contract for building work needs its own building contractor registration with a registered nominated supervisor. A director who works in their own company and is paid wages is generally treated as a worker for workers compensation purposes, and payroll tax grouping looks at every entity you control. Think about where you'll be in two or three years, not just on day one.

Step 2: Register nationally — ABN, business name, company

Apply for an ABN through the Business Registration Service; it costs free, and online applications are often approved straight away. If the ATO needs to check your entitlement, it can take up to 20 business days. Our ABN registration guide explains who is entitled to one and the most common reasons for rejection.

If you'll trade under any name other than your own personal name, register a business name with ASIC: A$47 for one year or A$108 for three. Check the name against IP Australia's trade mark search before you print signage. To incorporate, register a company with ASIC for A$636 once every director has a director ID. Register for GST within 21 days of your turnover reaching, or being expected to reach, A$75,000, and for PAYG withholding before you pay your first employee.

Step 3: Find your WA licences

The SBDC's free Business Licence Finder lists the WA Government and local government licences and permits for your activity and location; ABLIS does the same nationally. Most occupational licensing now sits with the Department of Local Government, Industry Regulation and Safety (LGIRS), which was formed on 1 July 2025 and took over Building and Energy (builders, electricians, plumbers, gasfitters and painters) and Racing, Gaming and Liquor. Older guides still refer to DMIRS — the forms and registers are the same, but the department name has changed.

Building work

Under the Building Services (Registration) Act 2011, building work that needs a building permit and is worth more than A$20,000 must be done by a registered building contractor, unless the owner holds approval as an owner-builder. The permit can only be issued to a registered contractor or an approved owner-builder. The Building Services Board looks at your qualifications and your finances: Building and Energy says applicants generally need to show access to at least A$50,000 in cash or equivalents and a quick ratio of at least 1:1. Companies and partnerships must nominate at least one registered building practitioner as supervisor. Building and Energy has consulted on a tiered registration system and a different threshold, so check the current rules before you quote.

Food businesses

Before you sell food from a fixed shop, a van or a market stall, you must notify or register your food business under the Food Act 2008. For most businesses that's your local government; the Department of Health handles a short list, such as dairy and shellfish processors and food businesses at Kings Park, Rottnest Island and a few state venues. Registration stays in force until it's cancelled, and fees are set by each local government, so they vary widely. Many councils won't accept the form until planning and building approvals for the premises are in place.

Cafés, restaurants, caterers and takeaways that handle unpackaged, ready-to-eat, potentially hazardous food are category one or two businesses under the national food safety standards. Since December 2023 they must appoint a food safety supervisor before they handle that food, make sure food handlers are trained, and keep records. The supervisor's certificate must have been obtained within the last 5 years.

Step 4: Premises and local government approvals

Your local government's planning scheme decides what can happen at an address. Before you sign a lease, ask the planning team three things: is your use permitted in that zone, does a change of use need development approval, and does your fit-out need a building permit? Turning a shop into a café, a warehouse into a gym, or adding late trading or liquor usually needs approval. Local governments also handle signs, alfresco dining, trading in public places and trade waste.

Home-based businesses are common in WA, especially in the outer suburbs and regional towns. Low-impact work — bookkeeping, design, an online store — often needs no approval, but planning schemes typically limit customer visits, staff who don't live there, signs, floor area and vehicles. Making food at home to sell is different: you'll need to register with your local government, and your kitchen will be assessed.

Retail shop leases in WA are covered by the Commercial Tenancy (Retail Shops) Agreements Act 1985, and the SBDC's dispute resolution service helps tenants and landlords resolve lease disputes at low cost. Read the disclosure statement carefully, get advice on any personal guarantee, and where you can, make the lease conditional on planning approval.

Step 5: Bank account, insurance and WorkCover WA

Open a business bank account — companies, partnerships and trusts need one, and it makes life much easier for sole traders too. Our business bank account guide covers what banks ask for and the card surcharging change from 1 October 2026. Then arrange insurance: public liability is usually demanded by landlords and local governments, and professional indemnity is compulsory in some professions.

Workers compensation in WA

Western Australia's workers compensation law was rewritten as the Workers Compensation and Injury Management Act 2023, which commenced on 1 July 2024. The core rule didn't change: every employer must hold a policy with an approved insurer covering every worker. Unlike NSW and Victoria, there's no small-wages exemption in WA — a single casual working Saturday shifts must be insured. The definition of "worker" can also catch contractors and subcontractors, depending on how the work is arranged.

Going uninsured is expensive. The SBDC warns of fines of up to A$5,000 per worker, and WorkCover WA can recover the premium you avoided for up to five years. Injured workers are still looked after through a default fund, which then pursues the employer. Premiums depend on your industry classification and wages; WorkCover WA's average recommended premium rate for 2026-27 policies is 1.931% of wages, but your insurer sets your actual rate. A sole trader with no workers isn't covered by a policy, so consider personal accident or income protection insurance. Our workers compensation guide compares the states.

WA numbers to know (2026)

A$1 million

Payroll tax threshold

A$83,333 a month

5.5%

Payroll tax rate

A$7.5 million

Wages at which the threshold fully phases out

1.931%

WorkCover WA average recommended premium rate

2026-27

A$20,000

Permit building work needing a registered contractor

above this value

Step 6: Hiring your first employee

Most WA businesses are in the national Fair Work system, so award wages and the National Employment Standards apply as in other states. The exception that trips people up is that unincorporated employers — sole traders, partnerships and some trusts — are in the WA state industrial relations system, which has its own awards and a State Minimum Wage of A$998.30 a week for adults from 1 July 2026, set by the WA Industrial Relations Commission. Pty Ltd companies are in the national system. Wageline (1300 655 266) can tell you which system covers you and which WA award applies. For national system employers, the minimum wage from 1 July 2026 is A$26.44 an hour, and super guarantee is 12%, paid with each pay cycle under Payday Super.

Your first WA employee — checklist in order

1. 1

   Confirm your industrial relations system

   Companies are generally in the national Fair Work system; sole traders and partnerships are generally in the WA state system.

2. 2

   Register for PAYG withholding

   Do it with the ATO before the first pay run.

   PAYG withholding guide
3. 3

   Take out workers compensation insurance

   Required from the first worker — WA has no small-wages exemption.

4. 4

   Set up STP payroll and Payday Super

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

   Single Touch Payroll guide
5. 5

   Give the required information

   National system employers give the Fair Work Information Statement (and the casual statement for casuals).

Step 7: Payroll tax in WA

Payroll tax is collected by RevenueWA, part of the Department of Treasury and Finance. The annual threshold is A$1 million of Australian taxable wages and the rate is 5.5%. Taxable wages include salary, super, bonuses, fringe benefits, directors' fees and some contractor payments. You must register within 7 days after the end of any month in which you pay wages in WA and your total Australian wages exceed A$83,333. Related businesses are grouped and share one threshold.

WA's threshold is not a flat deduction. It phases out as wages grow: the deductible amount falls by A$2 for every A$13 of Australian wages above A$1 million, so it disappears entirely at A$7.5 million. If you pay wages in other states too, you only get a share of the deduction. Our payroll tax by state guide explains grouping and the contractor rules.

Worked examples in A$

A Fremantle café run through a company

Priya and Ben set up a company to run a café in Fremantle. The one-off government registration costs are the company at A$636 and an ABN at free; they trade under the company's own name, so no separate business name is needed, and the company pays the ASIC annual review fee of A$342 each year. Before signing the lease they confirm with the City of Fremantle that a café is permitted in the building, apply for a building permit for the kitchen fit-out and an alfresco permit for four footpath tables, and register the food business. One of them completes food safety supervisor training.

They expect five staff and about A$300,000 of wages, including super, in the first year. They arrange workers compensation before the first shift: at the average recommended rate of 1.931% that would be about A$5,790 a year, though their actual premium depends on the café industry rate their insurer applies. Payroll tax doesn't apply — they're far below A$83,333 a month — and they register for GST from the start because they expect turnover above A$75,000.

A growing Perth firm crossing the payroll tax threshold

A Perth engineering consultancy grows to A$1.6 million of Australian taxable wages, all paid in WA. Because its wages are above A$1 million, the deduction phases out: A$600,000 over the threshold × 2 ÷ 13 = A$92,308 lost, leaving a deduction of A$907,692. Taxable wages are A$1,600,000 − A$907,692 = A$692,308, and payroll tax at 5.5% is about A$38,077 a year. The business should have registered within 7 days after the first month its wages passed A$83,333.

Government set-up costs and taxes in the two examples

Item	Fremantle café company	Perth consultancy
ABN	free	free
Company	A$636 + A$342 a year	Already incorporated
Local approvals	Building permit, food registration, alfresco permit	None for an office in an approved building
Workers compensation	Yes — from the first worker	Yes — from the first worker
Payroll tax	No — under A$1 million	About A$38,077 a year

ABN

Fremantle café company

free

Perth consultancy

free

Company

Fremantle café company

A$636 + A$342 a year

Perth consultancy

Already incorporated

Local approvals

Fremantle café company

Building permit, food registration, alfresco permit

Perth consultancy

None for an office in an approved building

Workers compensation

Fremantle café company

Yes — from the first worker

Perth consultancy

Yes — from the first worker

Payroll tax

Fremantle café company

No — under A$1 million

Perth consultancy

About A$38,077 a year

Grants and free support in WA

There's no general WA grant for starting a business, and the targeted rounds come and go. The SBDC's Small Business Growth Grants offered matched funding of up to A$10,000 to businesses that had traded for at least 18 months; the 2025 round ran from 4 August to 3 October 2025 and has closed. The Innovation Booster Grant of up to A$50,000 for early-stage founders and innovative SMEs, run by the Department of Energy and Economic Diversification, opened in March 2026 and closed on 30 March 2026. Watch for new rounds, and use our small business grants guide and the business.gov.au finder for federal programs.

Free advice is the more reliable support. The SBDC's advisory line, 133 140, connects you with business advisers who can help with planning, licences, leases and marketing; it also runs free workshops, provides templates and tools, supports regional businesses through its network, and runs a low-cost dispute resolution service that covers lease disputes and late payments. Builders and subcontractors can use its Building Industry Hotline.

Common mistakes when starting in WA

Assuming the NSW or Victorian workers compensation exemption applies. It doesn't. Fix: insure before the first shift, even for one casual.

Using the wrong award. Sole traders and partnerships are usually in the WA state system, not Fair Work. Fix: check with Wageline or the SBDC before you set a pay rate.

Quoting permit building work just over the limit without registration. A A$22,000 patio that needs a permit needs a registered contractor. Fix: register, or keep jobs genuinely within your scope.

Signing a lease before planning approval. A change of use can take weeks to approve. Fix: speak to the local government planners first and make the lease conditional.

Forgetting payroll tax phase-out. Growing businesses often budget on a flat A$1 million deduction. Fix: model the phase-out once Australian wages approach A$1 million.

Official links

• SBDC — Starting your businessFree advice, Business Licence Finder, 133 140
• Business Registration ServiceABN, business name and tax registrations
• RevenueWA — Payroll tax calculationThreshold, rate and phase-out
• RevenueWA — Payroll tax registrationWhen to register
• WorkCover WA — EmployersInsurance obligations
• Building and Energy — Building contractor registrationRegistration rules
• ABLIS — WA food business notification/registrationWhich agency and how

What to do next

Map your set-up budget with our startup cost calculator, apply for your ABN, then run the SBDC Business Licence Finder for your activity and suburb. If you're comparing states, read our guides to starting a business in NSW, South Australia and Victoria.

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 WA Government?

No. There is no general WA business register. Your ABN, business name and company are national registrations made through the Business Registration Service and ASIC. Western Australia comes in for licences — building, electrical, plumbing, liquor and others — plus local government food and planning approvals, WorkCover WA insurance once you employ, and payroll tax once Australian wages pass A$1 million.

How do I register a business name in WA?

Business names are registered nationally with ASIC, not with Western Australia. Apply through the Business Registration Service or ASIC Connect: it costs A$47 for one year or A$108 for three, and you need an ABN first. WA's own state register closed in 2012, so a WA-registered name now covers the whole country.

Do I need workers compensation insurance in WA if I only have one casual?

Yes. WA has no small-wages exemption like NSW or Victoria. Every employer must insure every worker — full-time, part-time or casual — with an approved insurer, and some contractors count as workers. Uninsured employers can face fines of up to A$5,000 per worker and repay the premium they avoided for up to five years. A sole trader with no workers isn't covered and doesn't need a policy.

What is the payroll tax threshold in Western Australia?

The WA threshold is A$1 million a year of Australian taxable wages, or A$83,333 a month, and the rate is 5.5%. You must register within 7 days after the end of a month in which your Australian wages pass the monthly threshold. The tax-free amount phases out between A$1 million and A$7.5 million.

Do I need a builder's registration in WA?

You need to be a registered building contractor to do building work that needs a building permit and is worth more than A$20,000, unless you're an approved owner-builder. Companies and partnerships need their own registration and a registered building practitioner as nominated supervisor. Electrical, plumbing and gas work need licences from Building and Energy regardless of value.

Where can I get free help starting a business in WA?

The Small Business Development Corporation (SBDC) runs a free advisory line on 133 140, a Business Licence Finder, free workshops and templates, and a dispute resolution service. Its advisers also cover regional WA. For federal programs, use the business.gov.au grants finder; for licences across all levels of government, use ABLIS.

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.Starting your business — Small Business Development Corporation (WA) · accessed 12 October 2026
2. 2.Payroll Tax Employer Guide: Calculation — WA Government (RevenueWA) · accessed 12 October 2026
3. 3.Payroll Tax Employer Guide: Registration — WA Government (RevenueWA) · accessed 12 October 2026
4. 4.Why your business needs workers' compensation insurance — Small Business Development Corporation (WA) · accessed 12 October 2026
5. 5.Modernising WA's workers compensation laws — WorkCover WA · accessed 12 October 2026
6. 6.Building contractor registration — Building and Energy (WA) · accessed 12 October 2026
7. 7.Welcome to the Department of Local Government, Industry Regulation and Safety — WA Government · accessed 12 October 2026
8. 8.Notification / Registration of a Food Business – Western Australia — ABLIS (Australian Government) · accessed 12 October 2026
9. 9.Food safety supervisor — Food Standards Australia New Zealand · accessed 12 October 2026
10. 10.WA award and minimum rates of pay to increase from 1 July 2026 — WA Government · accessed 12 October 2026
11. 11.Innovation Booster Grant 2026 applications now open — WA Government (DEED) · accessed 12 October 2026