How to Start a Tattoo Parlour Business

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How to start a tattoo business in Australia comes down to four jobs: pick a business structure, get licensed for your state, get your premises approved by council, and put the right agreements in place with clients and artists. In NSW and Queensland, that licence covers both the business and every artist who picks up a machine.

Here’s the honest bit. Most artists are brilliant at the work and dread the admin. So the paperwork waits until a landlord wants a signature, a council inspector books a visit, or the ATO sends a letter. None of it is hard once you know the order. This guide gives you the order.

? Fast facts
  • NSW uses two licences: a master licence and a tattooist licence. The master licence covers the business at one premises. If you hold it and tattoo there yourself, you don’t need a separate tattooist licence.
  • NSW Police runs tattoo licensing, not Fair Trading. You apply through Service NSW, then the Security Licensing & Enforcement Directorate checks your ID and takes your fingerprints.
  • Every state requires council approval for skin penetration. Only some states also license the people. Victoria, WA and SA rely mostly on council registration or notification.
  • A home studio still needs a licence. In NSW, each premises needs its own master licence, including a spare room.
  • Chair rental is a contract, not a handshake. A written agreement decides who owns the client, the bookings and the risk when something goes wrong.

What do you need to start a tattoo business in Australia?

Here’s the short checklist, in the order that saves you money. Licences and council approval come before the fit-out, because a refused application is cheap to fix on paper and expensive to fix with plumbing already in the wall.

  1. Choose a structure (sole trader, partnership or company) and get an ABN.
  2. Check your state’s tattoo licensing rules and lodge any licence applications early.
  3. Confirm with council that your premises can be used for skin penetration, then sign the lease.
  4. Fit out to council standards and register or notify the premises before you open.
  5. Sort insurance, a sharps and clinical waste contract, and your infection control procedures.
  6. Put client consent forms, booking terms and artist agreements in place before the first appointment.

Most people try to do step 3 first. Don’t. Signing a five-year lease on a shop that council won’t approve for tattooing is the single most expensive mistake on this list.

Which business structure suits a tattoo studio?

Structure is the first real decision when you start a tattoo business. Solo artists usually start as sole traders. It’s cheap, quick and you only need to register an ABN to begin trading. The catch: you and the business are the same legal person, so a client claim or an unpaid lease lands on your personal assets.

A company is a separate legal entity. That matters the moment you sign a commercial lease, take on other artists or buy an expensive fit-out. You’ll have more admin with ASIC and annual reviews, but you also get a cleaner line between studio debts and your house.

Our view? If you’re opening a shopfront with more than one artist, register a company before you sign anything. Switching later means transferring the lease, the insurance and the bookings, and landlords don’t always agree.

Partnerships suit two artists going in together, but each partner is exposed to the other’s business decisions. Two owners who both want liability protection are usually better off as shareholders in one company with a shareholders agreement.

Trading under a name like “Black Lotus Tattoo” rather than your own name? You’ll need to register a business name with ASIC before it goes on your sign or socials. Map it all out in a tattoo studio business plan, because banks and some landlords will ask for one.

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How do you get a tattoo licence in NSW?

NSW licenses tattooing under the Tattoo Industry Act 2012 (NSW). If you’ve read older guides, you’ll see it called the Tattoo Parlours Act and the business licence called an “operator licence. Both names changed after a 2022 review. It’s now a master licence, and NSW Police administers it.

The law covers body art tattooing, meaning tattoos done for decorative purposes. There are two licences, and which you need depends on your role.

Master licence vs tattooist licence

  • Master licence: lets you carry on a body art tattooing business at one set of premises. Opening a second studio means a second master licence.
  • Tattooist licence: lets an individual perform body art tattoos for a fee. Every artist working in your studio needs one, including contractors and chair renters.

Here’s where the old version of this guide caused confusion. If you hold the master licence for a premises and you tattoo at that same premises, you don’t need a separate tattooist licence. The moment you tattoo somewhere else, like a guest spot or a convention, you do.

Who can apply, and how the process works

You must be at least 18, an Australian citizen, permanent resident or New Zealand citizen, and not a member of a declared or prescribed criminal organisation. That last rule is the whole reason the scheme exists. NSW introduced it in 2012 to push outlaw motorcycle gangs out of the industry.

You apply for a master licence through Service NSW using a MyServiceNSW account in your exact legal name. Have these ready:

  • Two acceptable identification documents.
  • A Nomination of Premises Manager form (for the master licence).
  • Details of every employee and contractor who will work at the studio.
  • Your work history as a tattooist, including any apprenticeship (for the tattooist licence).

After you lodge, NSW Police sends a letter asking you to attend a police station for finger and palm prints. You have 42 days from that letter. Miss it and your application stalls, which is exactly when your landlord starts asking when you’ll open.

Applications can be refused if they’re incomplete, if you’re not considered a fit and proper person, or if you’ve been convicted of a disqualifying offence in the past 10 years. Build waiting time into your opening date. Don’t set a launch party until the licence card is in your hand.

How much is a tattoo licence in NSW?

Fees are set in fee units and indexed every 1 July. The most recent full schedule published by NSW Police (FY2024-25) lists these new application fees:

Licence1 year3 years5 years
Master licence (new)$2,312$2,809$3,302
Tattooist licence (new)$772$939$1,103
Visiting tattooist permit$268

Most of each fee is a non-refundable processing fee. So if there’s a question mark over your eligibility, sort it out before you pay. The 3-year and 5-year terms work out much cheaper per year, which makes them the obvious pick once you’re confident the studio will last.

What if you’re already licensed in another state?

Don’t assume your interstate licence or registration carries over. NSW runs its own police checks, so plan to apply here. For a short guest spot, a visiting tattooist permit is the cheaper route. Studios hosting guest artists should check the permit is sorted before the booking goes on Instagram.

What are the penalties for tattooing without a licence?

Running a body art tattooing business without a master licence carries a maximum of 50 penalty units for an individual and 100 for a corporation. Those amounts can apply again for every day the offence continues. At the current NSW rate of $110 per unit, that’s $5,500 or $11,000 per day.

An unlicensed artist faces 50 penalty units for a first offence and 100 for a repeat. Your ads also matter. Advertising a tattooing business now has to include your master licence number, so add it to your website footer and Instagram bio from day one.

Do you need a tattoo licence in every state?

No. That surprises a lot of artists. Some states license the people, while others only regulate the premises through council. Every state requires infection control, and every state treats tattooing as skin penetration.

State or territoryLicence for the business or artist?Premises approval
NSWYes: master licence and tattooist licence (NSW Police)Notify local council as a skin penetration premises
QLDYes: operator licence and tattooist licence under the Tattoo Industry Act 2013 (Qld), with police checksHigher-risk personal appearance services licence from council
VICNo tattoo-specific licenceRegister with local council under public health law
SANo licence, but businesses must notify the state regulator and some people are barredCouncil and public health requirements apply
WANo tattoo-specific licenceRegister with local government as a skin penetration business
TASNo tattoo-specific licenceCouncil licensing for skin penetration premises
ACTNo tattoo-specific licenceInfection control licence from Access Canberra
NTNo tattoo-specific licenceCheck with NT Health and your local council

Rules shift, and councils add their own conditions. Use this table as your starting point, then call your state regulator and council before you lodge anything.

How to open a tattoo shop: premises, lease and council approval

Premises are where most people who start a tattoo business lose money. Your council enforces the public health rules for skin penetration. In NSW, that means notifying council before you start and expecting inspections once you’re open. Ring the environmental health team before you sign a lease. Ask two things: is this use permitted at this address, and what fit-out do you expect?

Councils commonly look for:

  • A dedicated hand basin with hands-free taps, separate from any cleaning sink.
  • Smooth, washable surfaces on floors, walls and benches near the work area.
  • Clear separation between clean and dirty zones.
  • An autoclave with cycle records, or single-use sterile equipment.
  • Sharps containers and a clinical waste collection contract.

Now the lease. Landlords hand over their standard commercial lease, and most new studio owners sign it as is. Push for a clause that lets you walk away, or delays rent, if council or licensing approval is refused or held up. Also check the permitted use clause actually says tattooing, and who pays for plumbing and make-good when you leave.

Leasing in NSW? Lawpath’s commercial lease agreement (non-retail) template is a useful benchmark for what a fair lease looks like. Compare it against what the landlord sends you.

Can you run a tattoo business from home? Sometimes, but it isn’t the easy option. In NSW you still need a master licence for that address, council still applies its skin penetration rules, and your zoning and strata may not allow it at all.

Should your artists be employees, contractors or chair renters?

This is the decision that shapes your tax, your super bill and who keeps the clients when an artist leaves. Most studios mix models. That’s fine, as long as each relationship is written down and matches how people actually work.

ModelHow it worksWatch out for
EmployeeYou set hours, pricing and studio rules. You pay wages, super and leave.Award, payroll and WHS obligations. More control, more cost.
ContractorArtist runs their own business, invoices you or splits revenue.Sham contracting if you control them like an employee.
Chair rentalArtist pays you rent for a station and keeps their own takings.Unclear client ownership, insurance gaps, licence checks.

Calling someone a contractor doesn’t make them one. If you set their hours, take bookings for them and pay them a set rate, the law may see an employee. Read our guide to hiring an employee before you choose.

For station renters, use a written rent-a-chair agreement. For artists working on a revenue split, a contractor agreement (individual) covers payment, equipment, insurance and who owns the client list. Our checklist of documents you need to hire a contractor fills in the rest.

In NSW, remember that the master licence holder must not let anyone tattoo without a tattooist licence. So keep a copy of every artist’s licence on file, along with their expiry date.

What paperwork protects you and your clients?

Disputes in tattooing rarely start with bad art. They start with a lost deposit, a photo posted without asking, or a healing problem nobody explained. Four documents head off most of them.

  • Consent and health form: age and ID check, health disclosures, the design and placement, risks and aftercare. Signed before every session, not just the first.
  • Booking terms: deposits, rescheduling, no-shows, touch-ups and what happens if the artist cancels. Show them before the client pays.
  • Photo and marketing consent: kept separate from the tattoo consent, so a client can say yes to the tattoo and no to Instagram.
  • Privacy policy: you collect IDs, health details and photos. A clear privacy policy tells clients how you store and use them.

On deposits, a pattern our lawyers recommend across service businesses: keep the right to forfeit a deposit in your terms, then waive it case by case when you want to be generous. Removing the clause because it feels harsh leaves you with nothing to fall back on when a regular no-show happens.

Age checks deserve their own reminder. In NSW it’s an offence to tattoo anyone under 18, and a parent’s permission doesn’t change that. Check photo ID every time, and record the type of ID you sighted.

Waivers have limits. Under the Australian Consumer Law, you can’t contract out of the guarantee that services are provided with due care and skill. A waiver helps record that the client understood the risks. It won’t protect careless work.

What we see in Lawpath consultations

Our lawyers and accountants talk to tattoo artists, beauty businesses and studio owners every week. When people ask us how to start a tattoo business, a few patterns keep coming up.

Tax catches up with busy artists

The most stressful calls come from experienced artists who’ve contracted out of someone else’s studio for years. Business is good. Bookings are full. But returns and BAS haven’t been lodged, everything runs through one personal bank account, and there’s no accounting software. Sorting out years of overdue lodgements costs far more than getting it right from the start.

Open a separate business account on day one. Once your turnover reaches $75,000 a year, you must register for GST. Book in quarterly BAS reminders before you book in clients.

Adding tattooing to an existing business

Beauty salon owners adding cosmetic tattooing or body art often ask whether to run it through their current company. Our advisers usually recommend a new company for the tattoo side. It keeps the higher-risk service, and any claims that come with it, away from the assets of the business you’ve already built.

Studio contractor agreements that hold up

When studio owners bring us contractor agreements to review, three fixes come up repeatedly. First, track each contractor’s insurance expiry date and ask for the renewal before it lapses. Second, state clearly that the contractor isn’t a partner or agent of the studio, so you’re not on the hook for their side deals.

Third, be realistic about restraint and non-solicitation clauses. They’re hard and costly to enforce. A clear clause about who owns bookings, deposits and the client list does more practical work than a broad ban on an artist ever working nearby.

Incorporate before you grow, not after

Sole traders who plan to bring on other artists are better off setting up a company first. Incorporating later doesn’t wipe out exposure for work done as a sole trader. And if you do switch, move your insurance into the company’s name before it starts invoicing.

Does cosmetic tattooing need a licence?

Not under the NSW tattoo licensing law. Cosmetic tattooing, like eyebrow feathering or eyeliner, is excluded from the definition of body art tattooing. Medical tattooing done by a practitioner for medical reasons sits outside it too.

That doesn’t mean no rules apply. Cosmetic tattooing is still skin penetration, so council notification and infection control standards still bind you. And if you offer both cosmetic and decorative work, the decorative side needs full licensing.

Frequently asked questions about starting a tattoo business

Do I need a licence to tattoo from home?

In NSW, yes. A home studio needs its own master licence, and council skin penetration rules still apply. Check zoning and any strata by-laws first, because they can rule out a home studio before licensing even comes into it.

How much is a tattoo licence in NSW?

Under the FY2024-25 NSW Police schedule, a new 1-year master licence was $2,312 and a new 1-year tattooist licence was $772. Longer terms cost less per year. Fees are indexed each July, so check the current schedule before you pay.

Who issues tattoo licences in NSW?

NSW Police, through its Security Licensing & Enforcement Directorate. You lodge the application online through Service NSW. NSW Fair Trading no longer handles tattoo licences.

If I own the studio, do I need both licences?

Not if you only tattoo at your own licensed premises. A master licence holder can tattoo at that premises without a tattooist licence. You’ll need a tattooist licence to work anywhere else.

Can I tattoo someone under 18 with parental consent?

Not in NSW. Tattooing a person under 18 is an offence, and parental consent is not a defence. Other states have their own age rules and limited exceptions, so check locally. Always sight photo ID.

Do guest artists need a licence?

In NSW, yes. A visiting artist needs either a NSW tattooist licence or a visiting tattooist permit. As the master licence holder, you’re responsible for making sure nobody tattoos in your studio without one.

Should a tattoo studio be a sole trader or a company?

A solo artist renting a chair can start as a sole trader. If you’re signing a commercial lease or bringing on other artists, a company usually makes more sense, because it separates studio debts and claims from your personal assets.

Do tattoo artists need to register for GST?

Once your annual turnover hits $75,000, yes. Many busy artists pass that threshold sooner than they expect. Track your turnover monthly so registration doesn’t sneak up on you.

Ready to start your tattoo business?

If this feels like a lot, that’s normal. Every studio owner you admire went through the same licences, the same council visit and the same lease negotiation. You don’t need to do it all this week. You just need to do it in the right order.

Start with the step that’s hardest to undo: the lease. Get a fixed-fee quote from a Lawpath lawyer to review it before you sign, and open your doors knowing the paperwork is sorted.

Find the perfect lawyer to help your business today!

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