How to Start a Formwork Business in Australia: A Full Guide for New Contractors

If you’ve been wondering how to start a formwork business? Then this post is for you!

To start the formwork business you have been dreaming of, you will first need to consider a few key things. When starting any new business, you must ensure you meet all the administrative, financial and legal requirements. 

Formwork is no exception. You’ll want to ensure you have covered everything from your business structure to insurance to attracting customers. Let’s go through it together, step by step.  

Understanding the nature of formwork businesses

A formwork business creates temporary moulds that support wet concrete until it cures. This represents a crucial function for slabs, walls, columns, and architectural features in construction. 

A formwork business supplies and installs temporary structures to hold concrete in place until it sets, ensuring safety and precision in building works.​

Usually, the principal engineer is responsible for design, while subcontractors may be accountable for implementation and on-site adjustments. 

Most formwork companies provide:

• Slab and beam formwork
• Vertical (wall, column) systems
• Soffit frameworks for ceilings
• Advanced techniques (jump/slide forms) for multi-storey projects​

In Australia, strict construction safety laws and state-by-state licences govern formwork. For example, your business must follow the latest Work Health and Safety Regulation 2025 and ensure all engineers and supervisors hold the required credentials.​

Step-by-step guide: How to start a formwork business in Australia

So, how does one get started? The first steps will focus on business administration and licensing. Then, you can jump into the more fun side of your business, like marketing and client onboarding. 

Let’s take a closer look at each step. 

Step 1 — Choose a business structure and register

You will need to decide on a business structure to establish your business plan. Consider whether you will operate as one of the following. 

• A sole trader is someone who owns and operates a business under their personal name. 
• A partnership is when two or more people come together to form a business.
• A company is when you register your business as a separate entity from your personal affairs. 

You should contemplate which structure will work best for your business goals. It is important to know what the legal ramifications are of each structure and how they can affect how you operate. 

Once you’ve decided on your business structure, you’ll need to complete several key registrations. For instance, you’ll need:

• A business name
• An Australian Business Number (ABN) for the Australian Tax Office (ATO) and customers to identify your business
• Company registration (ACN) if you choose to operate under this structure 
• Tax requirements

This process should take about one to three weeks. 

Step 2 — Get the right licences (state-based)

While you are setting up your business, you also need to make sure that you have the right licenses and permits for formwork. The specific requirements will vary widely by state. For example: 

• NSW: Formwork Contractor Licence and Supervisor Certificate issued by NSW Fair Trading; requires a recognised building qualification.
• QLD: Adherence to the Formwork Code of Practice (2016), with QBCC administering licences.
• VIC: Registration under WorkSafe guidance for specific formwork activities, with mandatory compliance alerts.
• Other states: Licence needs vary; check with your local WHS regulator.

Formwork failures can be catastrophic and can result in serious injury or death. This is why it is incredibly important to consider any legal requirements that are in place to keep you and everyone around you safe. 

This part of your business set-up could take anywhere from four to six weeks or longer. 

See the “Licences and safety: state-by-state snapshot” table below for full details.​

Step 3 — Set up WHS compliance and SWMS

Formwork is classified as high-risk construction work under the WHS Regulation 2025, meaning you must develop a Safe Work Method Statement (SWMS) before work begins. 

The SWMS should clearly identify hazards related to the erection, alteration, and dismantling of formwork, specify control measures based on the hierarchy of controls, and detail how these controls are implemented and monitored. You should prepare it in consultation with workers carrying out the tasks and make sure the responsible parties sign it off.

Regular reviews of the SWMS are essential to ensure controls remain effective. Alongside this, you’ll need to conduct routine toolbox talks to reinforce safety practices and inform workers of any changes. Clear documentation of training and site induction is also essential. 

The initial process for this may take a week or two, but monitoring is ongoing. 

Step 4 — Arrange insurance and risk transfer

Getting insurance is another crucial step when setting up your business. You must protect yourself and your business from any legal action. Like with any construction work, formwork has a high rate of accidents, so it’s important to be covered. 

Legal and practical insurance cover for a formwork business typically includes:

Cover type	Protection scope	When applies
Public liability	Claims for bodily injury/property	All operational activities
Workers’ compensation	Staff injury on the job	Employment commencement
Contract works	Worksite/project damage	Per project
Professional indemnity	Design liability (if applicable)	Engineering/design services

Sourcing insurance is fast, but it’s important to shop around and find reliable providers. 

Step 5 — Lock down essential contracts

To get up and running, you will need to draw up several contracts. For example, you’ll need a client service agreement, employment contracts, and sub-contractor agreements if applicable. 

If you launch a website or deploy a digital marketing campaign, you’ll also need things like privacy notices and website terms and conditions. 

It’s important to protect your business from the get-go with the right documentation. Lawpath offers professional legal document templates that can save you the headache of spending hours getting these right. 

Step 6 — Set up accounting and payroll

Next, let’s talk money. You’ll need to establish clear, compliant financial processes that track project costs and pay staff accurately.

What to cover:

• GST/BAS cycles: Register for GST if required, set recurring Business Activity Statement (BAS) periods, and keep digital records.
• PAYG withholding: Withhold for employees and report to the ATO on schedule.
• Superannuation: Set up and reconcile super contributions for eligible staff and contractors.
• Timesheets: Implement consistent submission and approval workflows for precise costing.
• Job costing software: Select a tool that aligns with project-based revenue and costs.
• Record retention: Keep financial records (invoices, payroll, contracts) for the required periods.

While the initial setup might take a few weeks, these processes are ongoing. To stay compliant with Australia’s strict tax laws, make sure you are always on top of your accounting. ​

Step 7 — Tools, plant, and systems

Now that you’ve set up your legal and administrative details. decide whether to hire or buy your formwork materials like aluminum, timber, or steel. 

Hiring keeps upfront costs and risks low, while buying gives you full control but needs a bigger initial investment. The good news is that you will be able to claim most of these costs as business expenses on your tax return at the end of the year. 

Remember, all lifting gear needs certificates and regular checks. Also, plan how you’ll store and transport your tools efficiently.​

Step 8 — Find work (prequal and tenders)

Once everything is ready to go, it’s time to find your first client. There are many strategies to do this. 

Get listed with major builders and concreters, respond to local council and state tender calls, and create proof assets (site photos, safety stats, pour records) for credentials. Also, make sure to optimise your Google My Business profile with project photos and reviews.​

After you’ve secured your first gig, you can start thinking about more robust digital and analog marketing strategies. That said, word-of-mouth is still one of the best ways to go in the construction industry. 

Want to know more? Check out Lawpath’s free ebook on how to start a business in Australia. 

Licences and safety: State-by-state snapshot

Here is an at-a-glance table of the licenses you’ll need depending on your location. 

State/Territory	Licence/Permit Requirement	Safety Code/Guidance	Regulator Name
NSW	Formwork contractor licence/supervisor cert required for structural formwork. Certificate IV in Building and Construction is typically required.	Formwork Code of Practice, WHS Act 2025, Transport Standards TS00145	NSW Fair Trading, SafeWork NSW
QLD	Formwork trade contractor licence via QBCC. Certificate III or IV in Building/Construction is needed for registration.	QBCC Formwork Code of Practice 2016, WHS Regulation	QBCC, WorkSafe QLD
VIC	Labour Hire/Trade contractor must be registered; specific WorkSafe Victoria registration & approvals for formwork. Certificate IV as a minimum.	WorkSafe Victoria guidelines, alerts, Labour Hire Authority	WorkSafe Victoria, Labour Hire Authority
WA	Registered Building Practitioner or Contractor licence required; experience proof and renewal every 3 years.	WA Building Code, local WHS regulations	WA Building Commission
SA	Building Work Contractor/Supervisor licence issued by Consumer and Business Services. Qualifications plus NPC and financial checks needed.	SA WHS regulations, Consumer and Business Services guidance	Consumer and Business Services (SA)
TAS	A builder or trade contractor licence is required for formwork. Tiered by project type/height. Key application and references needed.	Building Code of Australia, CBOS regulations	Consumer, Building and Occupational Services (CBOS)
NT	NT Building Practitioner registration required; proof of competency and financial stability.	WHS (National Uniform Legislation) Act NT	NT Building Practitioners Board
ACT	Various builder licences are required based on project scale (Class A–D); trade supervisor certification for some specialised formwork.	WHS Act, Environment, Planning and Land Services guidelines	Environment, Planning and Land Services (ACT)
Other states/territories	Requirements vary; check with the local state authority and WHS regulator for any specialist formwork licensing and codes.	Local WHS rules, national regulations	Local WHS regulator

Cost to start a formwork business (with budget ranges)

How much might it cost to get your business up and running? Here is a quick breakdown of costs to consider. 

One-off costs:

• Entity setup fees: $600–$1,200 (structure, registration)
• Initial insurance deposit: $1,200–$3,000
• Engineering review: $1,500+ (per project)
• PPE and safety signage: $800–$1,500
• Basic tools and equipment: $3,000–$10,000
• First system hire/purchase bond: $8,000–$25,000

Ongoing costs:

• System hire fees: $1,000–$6,000/month
• Consumables (form oil, ties, nails): $500–$2,000/month
• Vehicle/plant finance repayments: $1,200–$4,000/month
• Inspections/maintenance: $300–$700/month
• Cloud/project software: $80–$300/month
• Payroll and on-costs: $8,000–$25,000/month (varies by crew size)
• Fuel, transport: $700–$2,500/month

Costs vary by scope, business model, and region; always plan for contingency budgets.​

Essential legal documents (and why they matter)

As mentioned earlier, you’ll need legal documents to get your business going on the right foot. Here are some key agreements and contracts, and why they are crucial. 

• A Services Agreement outlines the services you provide so that your customer knows what to expect. 
• An Employment Agreement outlines an employee’s responsibilities and their obligations to your business. 
• A Sub-Contractor Agreement can be useful if you need to employ another business or sole trader when operating your business. 
• An SWMS template documents WHS control measures, preventing compliance breaches and fines. These will vary from state to state, so choose one that’s best suited to where your business is located. 
• An insurance schedule provides proof of coverage, making it vital for builder and regulator acceptance.

Each protects against disputes, non-payment, WHS breaches, and regulatory defects.​

FAQs

Do I need a licence for formwork in NSW?

Yes, you must hold a formwork contractor licence or supervisor certificate from NSW Fair Trading, typically requiring a Certificate IV in Building and Construction.​

What code of practice applies to formwork in Queensland?

Queensland businesses must follow the QBCC Formwork Code of Practice 2016 plus state WHS regulations, with relevant trade contractor licensing.​

Is formwork “high-risk construction work” and do I need a SWMS?

Yes, all formwork work is defined as high-risk under national and state WHS law, and a site-specific SWMS is mandatory before starting work.​

Which insurances do I need?

Minimum cover includes public liability, workers’ compensation, and contract works insurance; add professional indemnity if providing design services.​

Can I use subcontractors?

Yes. Ensure you secure subcontractor agreements, verify licences, and make safety/indemnity responsibilities explicit in written contracts. Limit liability via robust legal templates and procedures.​

How Lawpath helps

Lawpath provides turn-key legal support for formwork businesses, including company registration, ABN, access to key contract templates, ongoing advice plans, compliance checks, and secure eSignature solutions. 

We help you reduce startup risk and legal overhead, so you can focus on growing your business.