Going out on your own: the tradie's setup checklist

Going out on your own is a big call. The work is the easy bit — you already know your trade. It's the paperwork that catches most first-year tradies out, usually at BAS time or the first time a client asks for your insurance certificate.

Here are the five things to sort before your first paid job, and the dates you'll need to keep an eye on after.

1. Get your ABN

An Australian Business Number lets you invoice as a business. Apply free through the Australian Business Register (abr.gov.au). Most sole traders get theirs the same day. You'll need your tax file number.

• Free to apply — don't pay a third-party site
• Put it on every quote and invoice
• Update your details if you move or change business name

2. Register for GST (if you need to)

You must register for GST once your turnover hits $75,000 a year, and most busy tradies get there quickly. You can register earlier if you want to claim GST back on tools and materials. Once registered, you add 10% GST to invoices and lodge a BAS — usually every quarter.

Put aside all the GST you collect, plus 25–30% of the rest for income tax, in a separate account. Henri shows you the exact amount every time an invoice is paid.

3. Public liability insurance

Most builders, real estate agents and commercial clients won't let you on site without it. $10M–$20M cover is standard for trades. Shop around each year — prices vary a lot.

• Keep a PDF of your certificate of currency on your phone
• Renews every 12 months — diarise it
• Consider income protection and tool cover too

4. Your trade licence

Electricians, plumbers, gasfitters and builders need a state licence to work unsupervised, and many states also license other trades over a dollar value. Check your state's fair trading or building authority. Licences renew every 1–5 years and often need continuing training (CPD) points.

5. A separate business bank account

Not legally required for sole traders, but it's the single best thing you can do for your sanity. Client payments go in, business costs come out, and your accountant will thank you.

The renewals to keep on top of

• Public liability insurance — yearly
• Trade licence — every 1–5 years, depending on state
• Vehicle rego and insurance — yearly
• BAS — quarterly if you're GST registered
• Tax return — yearly (31 Oct, or later through a tax agent)

Henri keeps this checklist on your dashboard and warns you 30 days before anything expires, so nothing sneaks up on you.

This is general information, not financial or legal advice. Chat to an accountant about your situation — it's money well spent in your first year.