How to Start a Welding Business in Australia: Step-by-Step Guide

Starting a welding business in Australia is a viable and potentially profitable venture for skilled tradespeople. Welding remains an essential trade in construction, manufacturing, repairs, and specialised industries like mining and marine sectors. 

To launch a successful welding business, you’ll need to combine technical skill with solid business planning, compliance with legal regulations, appropriate insurance coverage, and effective marketing. 

This guide covers everything from business planning, registration, and costs to insurance, equipment, and branding, so you can confidently build a strong welding business in Australia.

What is a Welding Business?

A welding business deals with metal for repairs and restoration, and helps build various types of items and structures. The scope of a welding business can be significant. From metal fabrication to plasma cutting, there is a range of services you can provide to a variety of different customers with different needs.

You can choose to run a mobile business or a fixed workshop. Also, while it’s possible to set up a general welding business, you may want to consider a niche. Here are some examples: 

• Marine welding (ships and boats)
• Nining equipment welding
• Automotive welding
• Industrial fabrication. 

Each comes with different setup costs and profitability potential depending on equipment, location, and client base. Here is a quick overview of what you may expect to invest and how much you might see in return. 

Service Type	Setup Cost Range	Profit Potential
Mobile welding	Low to Medium ($10k-$30k)	Medium (flexible, on-demand)
Workshop-based welding	Medium to High ($30k-$50k+)	High (steady projects, contracts)
Niche welding (Marine, Mining, Auto)	High ($40k-$60k+)	High (specialised, premium rates)

Mobile welding generally requires lower initial investment but may yield moderate profits depending on the client volume and travel efficiency. Workshop-based businesses require larger capital but often attract higher, consistent revenue. Niche industries demand extra certifications but allow premium pricing and repeat business in specialised markets.

No matter which type of business you decide to launch, we encourage you to follow our step-by-step guide below to get the legalities and accounting right off the bat!

Step 1: Create a welding business plan

Excellent planning will often lead to success. Using your research, you should develop a formal business plan to guide your business. This might include your:

• Market research: Understand demand for welding services locally. Analyse competitors, identify gaps in services or niches.
• Pricing strategy: Decide between hourly rates or project-based pricing. Hourly rates in Australia typically range from $100 to $150 per hour, depending on complexity and location. Project pricing suits fabrication or custom builds.
• Customer targeting: Identify ideal customers, such as builders, farmers, automotive workshops, or industrial clients.
• SWOT Analysis: Evaluate the Strengths, Weaknesses, Opportunities, and Threats facing your business.

Example pricing could be:

• Mobile welding: $120-$150 per hour plus callout fees
• Workshop fabrication: Project quotes starting at $1,000

Your business plan is your roadmap that gets you going, but also allows you to grow. Make sure to spend the right amount of time and energy on drafting it thoroughly. Otherwise, you may find it difficult to navigate business complexities and attract initial capital for your business. 

Other common pitfalls to avoid include undercharging for jobs leading to cash flow issues, neglecting ongoing operational costs, and misjudging demand. One welder on a popular Australian Reddit forum warns, “Make sure you price your work to cover not just your time but material, overheads, travel, and downtime. Many forget this and struggle with cash flow”.

Step 2: Register your business and legal structure

Once you’ve established a business plan, you will need to decide on a business structure. 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 your operations, taxation, and liabilities. 

Registering your business 

You need to register for a few things in order to make your business official. For instance:

• An Australian Business Number (ABN), which helps the Australian Tax Office (ATO) and customers identify your business. 
• ACN registration, which is necessary if you plan to operate as a company rather than a solo trader or partnership. 
• Goods and Services Tax (GST) registration is also essential if you expect turnover to exceed $75,000. 

Now, as a welding shop, you’ll also need to decide on a business name. Once chosen, you can check the availability of the business name. If it is, you can then register your business as a trademark to ensure that you have the exclusive rights to your business name throughout Australia. 

Welding licenses in Australia

In addition to general business registration procedures, welding businesses must also comply with licensing and permit regulations in their state. Typically, this includes:

• Trade licence or Certificate III in Engineering – Fabrication Trade
• Local council permits for workshop operation
• Welding certifications (such as Welder Qualification Certificates)
• Compliance with Work Health and Safety (WHS) standards

Compliance checklist

• Register ABN 
• Register an ACN (if applicable)
• Obtain welding trade qualifications and licences
• Register for GST (if applicable)
• Secure business insurance
• Adhere to WHS regulations
• Obtain workshop or mobile setup permits from your local council

Step 3: Understand welding business costs in Australia

Running a business sounds great. But how much does it cost to start a welding business? Typically, you’ll need to come up with anywhere between $15,000 and $50,000, depending on the scope. 

The main costs to consider include equipment, location (home-based or a physical shop), and compliance elements like insurance, licensing, permits, and so on. 

Here is a quick breakdown of possible costs. Note that these will vary widely depending on your business type, location, and niche. 

Cost Element	Estimated Cost Range (AUD)
Welding equipment	$5,000 – $20,000 (MIG/TIG welders, plasma cutters)
Workshop lease	$500 – $2,000/month or mobile van setup $15,000+
Insurance	$1,000 – $3,000 annually
Accounting	$500 – $2,000 annually
Licences/permits	$500 – $1,500

Of course, you won’t typically need to put up all the money out of pocket. Instead, there are many financing options available to entrepreneurs in Australia. These include: 

• Small business loans
• Leasing equipment
• Personal savings

For example, leasing can reduce upfront costs, helping you get the ball rolling faster. Remember, however, that you’ll have to make more ongoing payments. The key is to weigh out your options carefully and determine which financing method is right for you.  

Step 4: Set up insurance and compliance

Insurance is the most important step when setting up your business. You must protect yourself and your business from any legal action. Whether you are a mobile welder or set up a workshop, you’ll face different challenges in managing insurance and safety. 

Mobile welders often contend with the challenge of meeting WHS compliance across a variety of job sites, each with unique risks and safety standards. Workshops, on the other hand, are responsible for maintaining strict and permanent WHS protocols, including routine equipment testing, ventilation systems, and record-keeping. 

This contrast means that both setups require diligence, but the exact details might differ. In either case, consider these types of insurance, keeping in mind the nature of the business you plan to run: 

• Public liability insurance: Covers injuries and property damage claims by third parties.
• Workers’ compensation: Mandatory if employing staff.
• Equipment insurance: Protects welding machines and tools against damage or theft.

In addition to insurance, make sure that your business adheres to Safe Work Australia standards. This includes:

• Personal Protective Equipment (PPE) such as helmets, gloves, respirators
• Adequate ventilation to manage fumes
• Fire safety protocols due to sparks and heat

While insurance is no small cost when it comes to running a welding business, operating without insurance can lead to severe consequences. Make sure to get insured before you get started. 

Step 5: Tools, equipment, and suppliers

When understanding how to start, you need to research what welding business equipment you’ll need and how much it will all cost. Your business research should help you find the best deals to optimise the profitability of your business.

Core welding machines include:

• MIG welders: Versatile, good for various metals, prices $2,000–$8,000
• TIG welders: Precision for thin metals, $3,000–$10,000
• Plasma cutters: For cutting metals, $1,000–$5,000
• PPE: Helmets ($200+), gloves, jackets, safety boots

You’ll also need to find a supplier who will provide all your equipment basics and other materials. Some leading Australian suppliers are BOC Welding, Total Tools, Blackwoods, All Welding (Melbourne), and Alphaweld (Perth). 

These suppliers offer quality machines, consumables, and safety gear with technical support. It’s a good idea to go with a reputable supplier and sign legally binding supplier agreements from the get-go. This way, both of you are protected in terms of quality and payment terms. 

Step 6: Build your brand and attract customers

The first step to success is building a strong brand. Create an attractive logo, build a professional website, and set up your Google business profile to enhance local search visibility. 

To help you attract customers, you’ll need a holistic marketing strategy so you can reach the people who need your help. 

Having an online presence is important even for construction companies. Using websites like Shopify or GoDaddy can help you create a well-established business so that your customers can easily find you. Make sure to consider any website terms and conditions to ensure that your customers are safe.

Starting a social media page or putting an advertisement in your local newspaper are also great ways to start getting your name out there. However, the simplest and effective approach to reaching new customers is through word of mouth. 

A Reddit user recommends: “Get your first few jobs by offering competitive rates on trade sites, then build reviews and referrals. That’s how you get traction in local markets”.

Step 7: Accounting, tax, and financial management

Efficient accounting, tax, and financial management are at the core of every successful welding business in Australia. Here are your core responsibilities as a business: 

• Register for GST if your annual turnover exceeds $75,000. This is compulsory for most established welders. 
• Once registered, your business must file regular Business Activity Statements (BAS), which report GST collected and paid, Pay As You Go (PAYG) withholding on staff wages, and other tax obligations to the ATO. 
• Lodge your BAS accurately and on time to avoid penalties and keep the business in good standing with regulators.

In addition to thorough reporting, diligent recordkeeping is essential for tracking deductible business expenses. This is critical for reducing your tax obligations. 

Typical tax deductions for tradies include:

• Fuel for work vehicles
• Personal protective equipment (PPE) and uniforms
• Tools and consumables
• Equipment depreciation
• Ongoing training courses
• Trade licences
• Professional memberships
• Regular servicing or maintenance of vehicles and machinery. 

These deductions can significantly lower the annual tax bill for welding businesses, so it’s worthwhile to keep invoices and receipts well organised.

Business owners have two main options for managing bookkeeping and compliance routines. Many prefer using dedicated accounting software such as Xero or MYOB, which simplifies GST tracking, expense management, BAS submission, and payroll reporting. Alternatively, some owners choose to hire a tax accountant who specialises in trade businesses. 

With the right tools and support, managing finances becomes much more straightforward, setting the stage for long-term business growth and success in the Australian market.

Common challenges when starting a welding business

New welders commonly experience:

• Cash flow problems due to irregular work and late payments
• Difficulty keeping up with safety and legal compliance requirements
• Strong competition from established businesses
• Rising prices of raw materials and equipment that impact margins

Real-world frustrations shared by welders online highlight that solid planning, competitive pricing, and maintaining safety are crucial to overcoming these hurdles.

Welding business startup checklist

• Create a detailed business plan with market research, pricing, and SWOT
• Register business, legal structure, ABN, licences, permits
• Secure necessary insurance coverage (liability, workers comp)
• Purchase or lease welding equipment and workshop/mobile setup
• Build brand, create website, claim Google Business Profile
• Implement marketing through directories, social, and tradie platforms
• Set up a proper accounting system for GST, BAS, and tax deductions
• Ensure ongoing compliance with WHS and Safe Work Australia standards
• Focus on cash flow management and customer relationship building

FAQ

Is a welding business profitable in Australia?

Yes, with the right planning, pricing, and client targeting, welding businesses in Australia can be profitable and sustainable.

How much does it cost to start a welding business?

Starting costs typically range between $15,000 and $50,000, depending on equipment and business model.

Can you make $100,000 a year welding?

Skilled welders and business owners can make $100,000 or more annually, especially with efficient operations and strong customer bases.

Building a successful welding venture

Starting a welding business in Australia offers a solid opportunity in a vital trade with manageable startup costs and strong demand. However, long-term success hinges on compliance with licensing, insurance, and safety, which are essential for long-term success. 

Lawpath provides expert support for business setup, registration, and ongoing tax and accounting needs to help welders build thriving businesses. Start your welding business with Lawpath today and weld your future strong.