Cost of Setting Up as a Freelancer in Australia
Calculate exactly what it costs to set up as a sole trader or contractor — ABN, insurance, accounting, software, and everything in between. Toggle the items that apply to your situation.
What you actually need to get started
The good news: the legal minimum to start freelancing in Australia is just an ABN, which is free to register at abr.gov.au. You can start invoicing clients immediately.
The realistic picture is more involved. Most professional freelancers need insurance before clients will engage them, bookkeeping software to stay on top of tax, and an accountant to ensure they're claiming everything legitimately.
The non-negotiables
ABN (Australian Business Number)
FreeRegister at abr.gov.au. Takes 15 minutes. You need an ABN to invoice businesses and to access the tax concessions available to business owners. Without one, businesses must withhold 47% tax from payments to you.
Business bank account
$0–$15/monthNot legally required, but practically essential. Separating business and personal finances saves hours at tax time and makes your accountant's life (and bill) significantly smaller. Many banks offer free accounts for sole traders.
Professional indemnity insurance
$600–$2,500/yearRequired by most corporate and government clients. Protects you if a client claims your advice or work caused them financial loss. Cost depends heavily on your industry — IT and management consulting are typically $800–$1,500/year.
Tax agent / accountant
$1,000–$3,000/yearEven a straightforward sole trader return benefits from professional preparation. A good accountant will identify deductions you'd miss and ensure your BAS lodgements are correct. Fee is itself tax-deductible.
GST — when you need it
GST registration is mandatory once your annual turnover exceeds $75,000. Below that it's optional — but there are reasons to register early:
- →You can claim GST credits on your business expenses
- →Some clients prefer to deal with GST-registered suppliers
- →If you expect to hit $75k quickly, registering early avoids a scramble
Add 10% to all client invoices. Collect it, hold it, remit it to the ATO with your BAS (quarterly or annually). It's never your money — just a pass-through. Your bookkeeping software handles this automatically.