Every Australian small business must register its business name (unless you trade under your own name), hold the right tax registrations, comply with the Australian Consumer Law, meet its obligations to employees, and follow the rules on privacy and marketing. Several of these rules changed in 2026. Here's what applies, and where to start.
Personally, I find there is something deeply satisfying about seeing a business that is genuinely compliant. Not because compliance is glamorous, but because a compliant business is a protected one. It can grow, take on bigger clients and sell one day without nasty surprises.
In my first twelve years as a litigation lawyer, I saw what happens when the basics are missed. Almost none of those disputes started with a business owner who didn't care. They started with one who didn't know.
This guide sets out the legal requirements that apply to running a small business in Australia, in plain English, and what has changed this year. If you're just starting out, begin with my handbook on starting a small business in Australia, then come back here.
Do I need to register my business name and ABN?
Yes, if you trade under any name other than your own. If you use a business name to trade or promote yourself, you must register it with the Australian Securities and Investments Commission (ASIC). Trading as "Tracey Mylecharane" needs no registration; trading as "Tracey Mylecharane Legal Studio" does.
An Australian Business Number (ABN) is what you need to register a business name, and most clients and suppliers will expect one on your invoices. You must also register for GST once your annual turnover reaches $75,000.
One thing business owners often misunderstand: registering a business name gives you the right to use it, not exclusivity over it. It doesn't stop anyone else using a similar name. Only a registered trade mark gives you that exclusivity, which is a separate conversation about protecting your brand.
This is also the time to bring in a good accountant. They will make sure your tax registrations, BAS lodgements and PAYG obligations are set up properly from day one, and those mistakes are far cheaper to prevent than to fix.
Does my business structure change my legal obligations?
Yes. Your structure decides who is legally responsible when something goes wrong, and which rules apply to you.
As a sole trader, you and your business are the same legal person. Every contract, debt and claim is yours personally, including your home and savings. A company is a separate legal entity, which can protect your personal assets, but it brings its own obligations:
Every director must have a Director ID, a unique identifier you apply for once and keep for life.
Directors owe legal duties under the Corporations Act, including acting in good faith and not trading while the company is insolvent.
The company must keep its details up to date with ASIC and pay its annual review fee.
If you have business partners or co-shareholders, a partnership or shareholders agreement is essential. The disputes I find most heartbreaking are between friends and family who went into business without one.
Structures should be reviewed as your business grows. Many owners outgrow the structure they started with, and changing it is simpler than living with the wrong one. I cover structure and asset protection in depth in The Atelier Guide to Protecting Your Business.
What does the Australian Consumer Law require of my business?
The Australian Consumer Law (ACL) applies to almost every business that sells goods or services, and it can't be contracted out of. The core requirements are:
Consumer guarantees. Your services must be provided with due care and skill, be fit for purpose and be delivered within a reasonable time. Goods must be of acceptable quality. Customers have remedies when these aren't met, whatever your terms say.
No misleading or deceptive conduct. What you say in your marketing, website, proposals and social media must be accurate, including what you leave out.
No unfair contract terms. Since November 2023, unfair terms in standard form contracts with consumers and small businesses are illegal, not merely void. For companies, maximum penalties are the greater of $50 million, three times the benefit obtained, or 30% of adjusted turnover.
That last point is the one I see catch business owners most. A clause copied from a template can expose you to penalties, even if you never relied on it.
Coming on 1 July 2027: Parliament passed new laws in July 2026 that ban "unfair trading practices" towards consumers, such as false urgency and manipulative online design. They also require businesses to disclose mandatory fees whenever a base price is shown, and to make subscriptions easy to cancel. If you sell to consumers, especially online or by subscription, now is the time to review your sales process and terms.
Do my business terms and conditions need to be legally compliant?
Yes. Your terms are where most of your compliance either holds together or falls apart. For a service-based business with a website, three documents do most of the work:
Business terms and conditions (your client service agreement or terms of trade): what you deliver, what it costs, when you're paid and what happens if things go wrong.
Website terms and conditions: the rules for using your site, your disclaimers and the protection of your content.
A privacy policy: how you collect, use and store personal information (more on this below).
Your terms must work with the ACL, not against it. A clause that tries to exclude the consumer guarantees, or that gives you rights your client doesn't have, can be unfair and unenforceable. Your terms also need to be properly accepted. Sending them before work starts, or using a click-to-accept step online, matters as much as what they say.
Templates are where this goes wrong. A template will get you started; it won't get you out of trouble. It wasn't written for YOUR business; remember that. Templates are generic, which means they're written for everyone and work for no one. A template can't anticipate how you actually work. I explain the difference in business terms vs website terms and whether template documents are adequate.
Does my small business need a privacy policy?
In my view, yes, even if the law doesn't strictly require one yet.
The Privacy Act currently exempts most businesses with an annual turnover of $3 million or less. That exemption has important exceptions. It doesn't apply if you provide health services, trade in personal information, or are a reporting entity under the anti-money laundering laws. That last exception matters this year: since 1 July 2026, many lawyers, accountants, conveyancers and real estate professionals have been brought under the Privacy Act through the AML/CTF reforms, at least for the client information they collect for that purpose.
There is a lot of confident commentary online claiming the small business exemption ends in 2026. It doesn't. The draft second round of privacy reforms released in August 2026 leaves the exemption in place for now. But two things have already changed for everyone:
Since June 2025, individuals can sue for a serious invasion of their privacy, whether or not the business is covered by the Privacy Act.
Clients, platforms and larger businesses increasingly expect to see a privacy policy before they will work with you.
A clear, accurate privacy policy builds trust, is often required by the platforms and payment providers you use, and positions you well if the exemption narrows later. I explain more in does my small business need a privacy policy?
What are the rules for marketing emails and texts?
Under the Spam Act, every commercial email or text you send must meet three requirements:
Consent. The person agreed to receive it, either expressly (they signed up) or in limited circumstances where consent can reasonably be inferred from an existing relationship.
Identify yourself. The message clearly says who sent it and how to contact you.
An easy way to unsubscribe. Every message includes a working unsubscribe option, and requests are actioned within five working days.
Buying lists, adding everyone you've met at an event, or emailing people who once enquired years ago are the common traps. Your email platform will help with the mechanics, but the consent question is yours. Read more in when can I send an email or SMS?
What are my obligations as an employer?
The moment you bring on your first team member, a new set of obligations apply. The essentials:
Engage people correctly. Whether someone is an employee or a contractor depends on the real substance of the whole relationship, not just what your contract calls them. Getting this wrong can mean back-paid wages, super and penalties.
Pay correctly. Employees must receive at least the minimum entitlements in the National Employment Standards and any applicable award, with proper payslips. Since January 2025, intentionally underpaying wages can be a criminal offence.
Pay super on payday. From 1 July 2026, superannuation must be paid at the same time as wages, not quarterly. Contributions must reach the employee's fund within seven business days of payday. The ATO's free Small Business Superannuation Clearing House has closed, so check your payroll system is set up for this.
Respect the right to disconnect. Since August 2025, employees of small businesses can refuse unreasonable contact outside their working hours.
Provide a safe workplace. Work health and safety duties cover psychological as well as physical safety, including for people working from home.
Every employee needs a written employment agreement, and every contractor needs an independent contractor agreement. It's also worth knowing that the Government has announced a ban on non-compete clauses for most workers from 2027, though the legislation hadn't passed at the time of writing. More in growing your team: must-haves for employment agreements and a legal checklist for engaging independent contractors.
What compliance changes should small businesses know about in 2026 and 2027?
2026 has been a big year for small business compliance, and more is already legislated for 2027. The key dates:
1 July 2026: AML/CTF obligations extended to lawyers, accountants, conveyancers, real estate and other "gatekeeper" professions (businesses providing designated services).
1 July 2026: The Privacy Act applies to Tranche 2 small businesses for their AML/CTF-related information, regardless of turnover.
1 July 2026: Payday super: super paid with wages and received within seven business days (every employer).
August 2026: Draft second round of privacy reforms released, with the small business exemption retained in the draft.
10 December 2026: Privacy policies must explain automated decisions that significantly affect individuals (businesses covered by the Privacy Act).
1 July 2027: Ban on unfair trading practices, plus new drip pricing and subscription rules (businesses selling to consumers).
2027 (announced): Ban on non-compete clauses for workers under the high-income threshold (employers, once legislated).
None of these needs panic. Each needs a calm, documented review of how your business works, done before the date rather than after it.
How do I stay compliant as the law changes?
Treat compliance as a yearly habit, not a one-off project. Once a year, ideally before the new financial year, check five things:
Is my business structure still right for the size and risk of my business?
Do my client terms and website documents reflect how I work now, and the current law?
Is my privacy policy accurate, and does it reflect any new obligations?
Are my team engaged correctly, and is my payroll compliant?
Have any laws changed that affect my industry this year?
If you'd like to work through the foundations yourself, The Atelier Guides cover business legals, risk and getting paid in practical detail. And as businesses grow, many reach the point where an annual check isn't enough. That's where fractional in-house counsel comes in: a lawyer who already knows your business, keeping an eye on what's changing so you don't have to.
Prevention is better than cure. It always has been.
This article provides general information only and does not constitute legal advice. Your obligations depend on your specific circumstances.
Frequently asked questions
Do I need to register a business name in Australia?
Yes, if you trade under any name other than your own personal name. Business names are registered with ASIC, and you need an ABN to register one.
When does my small business need to register for GST?
You must register for GST once your annual turnover reaches $75,000.
Does the Privacy Act apply to small businesses?
Most businesses with an annual turnover of $3 million or less are exempt, but there are exceptions, including health service providers and businesses captured by the AML/CTF laws from 1 July 2026. The draft privacy reforms released in August 2026 keep the small business exemption.
When do employers have to pay super under payday super?
From 1 July 2026, employers must pay super at the same time as wages, and contributions must reach the employee's fund within seven business days of payday.
What is the unfair trading practices ban?
From 1 July 2027, the Australian Consumer Law bans unfair trading practices towards consumers, such as manipulative design and false urgency, and introduces new drip pricing and subscription cancellation rules.
