Going out on your own as a tradie? What to sort before the ABN
So you're thinking about going out on your own. Maybe you're finishing your apprenticeship. Maybe you've been doing weekend jobs and wondering why the boss is making all the money. Either way, most people start by applying for an ABN.
Here's what nobody tells you. The ABN is the quick bit. Getting set up properly starts before it, with your reasons, your time, your household money and the people at home. Sort those first, then do the registrations in order.
Take a deep breath. This is normal. It's not hard. It's just new.
Key takeaways
• An ABN is a registration, not a plan.
• Know your numbers before you hand in your notice.
• Plan for the wait between finishing a job and getting paid.
• Agree who does what at home before you start.
Why "just get an ABN" isn't a plan
Ask around and you'll hear the same advice: get an ABN, get insurance, get your name on the ute. A list like that only helps if you know what each step means and what order to do them in. If you don't know what you don't know, a checklist isn't going to help you.
In the 12 months to March 2026, 55,570 trade apprenticeships were completed in Australia (NCVER). Being great at your trade and running a business are two different skills, and most will learn the second one from scratch.
Step 1: Be honest about why you're starting
Better money, more say over your work, more time with the kids. All fair reasons. Write yours down, along with what you hope will change. It shapes how many hours you'll work and what a good year looks like, and it's what you come back to in the week everything goes wrong.
Step 2: Work out where the time is coming from
Hours usually go up before income does. A full day on the tools, then quotes, invoices and chasing payments at night.
List everything that already takes your time and headspace, including the invisible load: the rego, the school forms, the dentist. None of it shrinks when a business moves in, so clear what backlog you can while you still have a regular wage.
Step 3: Know your numbers before you hand in your notice
"I started my business with $100." Sure. Plus the ute, the tools, the insurance and a few months of living costs while the work builds.
There's no magic savings number. Yours comes from:
• What your household costs each month, plus an emergency fund.
• Start-up costs: tools, vehicle, licences, insurance and software.
• Running costs that go out whether there's work or not.
• The income you need to cover it all and pay yourself, broken down into a daily target.
Then plan for the wait.
Step 4: Have the conversation at home
"I'll help with a bit of paperwork" is how it starts. Then it's the quotes, the invoices, the BAS and the customer who asks to speak to the boss. That's not helping out. That's running the business behind the business.
Before you start, agree who wants to start the business and why, who does what, and what happens to the household money in year one. If you're starting as a couple, the Starting Together version of the guide is written for two people at every stage.
Step 5: Set up the business, in order
Now the registrations: choose your structure first, then get your ABN. If you're trading under a name other than your own, register the business name, then sort your GST, licences, insurance, separate bank accounts and systems. Get advice on the right structure before you register. Register for GST when your GST turnover reaches $75,000, or if you expect to reach that threshold. You can also register voluntarily earlier if it suits your business.
Two things catch people out. Insurance quotes can leave out the cover you need, so ask what isn't included. Tax no longer comes out of your pay automatically. The bill can turn up later, often after the money's been spent, and you may later be entered into PAYG instalments once you meet the ATO's criteria. Open a separate tax account from day one and put a set amount from every invoice into it.
Step 6: Take the right questions to your accountant
Go in with your numbers and a list: which structure suits you, whether to register for GST now, how much to set aside for tax, and when everything is due. Your accountant covers the tax. The rest is your household, your time, your systems and your plan.
Still an apprentice?
You don't need to do any of this yet. Save a little from every pay, and watch how your boss quotes and chases money. Your job is a masterclass in how a business runs.
It's not hard. It's just new.
Nobody Tells You This Stuff: A Practical Guide to Setting Up Your Business walks you through all of it, in order, across ten stages. It's 99 pages with worksheets, in two versions: Starting on Your Own, and Starting Together for couples. It's $375 inc GST, one-off, and Australian buyers also get a 20 minute one-on-one with Alexandra.
Frequently asked questions
What should I do before getting an ABN as a tradie?
Work out why you're starting, where the time will come from and what your household needs to stay afloat. Then budget your start-up costs, running costs and the income the business has to make, and talk it through with your partner. The ABN comes after that, with your structure, licences and insurance.
How much money should I save before going out on my own?
There's no single number. Start with your household costs and an emergency fund, then add start-up costs, running costs and the income you need while work builds. Allow for the wait to get paid: Australian small businesses waited 22.9 days on average in mid-2026 (Xero). Your accountant can help you test it.
When do I need to register for GST?
You have to register for GST once your turnover reaches $75,000 a year, and you can register earlier if it suits your business. Once registered, you charge GST on invoices, claim GST credits on what you buy and lodge a business activity statement. Check the current rules with the ATO and your accountant.
This post is general information only, not tax, legal or financial advice. Check the rules for your trade and state, and talk to your accountant about your situation.