Restaurant Legal Requirements Australia: Complete Compliance Checklist 

Running a restaurant involves navigating a complex legal landscape — restaurant legal requirements in Australia are no joke!

Restaurateurs must comply with multiple layers of regulations from federal, state, and local authorities, often involving overlapping licences and approvals. This can make compliance a challenging exercise, but understanding key legal requirements is essential for smooth operations and avoiding fines or shutdowns. 

This comprehensive checklist covers essential licences, permits, registrations, and operational compliance obligations that Australian restaurants must meet to operate legally and safely.

1. Business setup and registrations

Starting your restaurant begins with establishing the right business foundation. Core setup tasks include: 

• Obtaining an Australian Business Number (ABN)
• Registering a business name
• Choosing an appropriate business structure — sole trader, company, or trust
• Registering for Goods and Services Tax (GST) if you expect turnover to exceed $75,000 annually. 

Remember that choosing the right structure affects your tax obligations, liabilities, and future growth. In most cases, restaurants need to register as a company because they typically hire staff to run the business. Also, it’s essential to separate your personal liability from your business, since restaurants pose certain risks, such as food and staff safety. 

No matter which structure you choose: 

• Do this first: Apply for your ABN and register your business name with ASIC.
• Keep the following proof: ABN registration documents, business name registration certificates, and GST registration confirmation.
• Avoid these common mistakes: Choosing an unsuitable business structure without expert guidance; neglecting GST registration, leading to penalties; failing to register the business name if trading under a different name.

Unsure of how to start? A legal advice plan may be your best bet in deciding how to structure your business most effectively. 

2. Food business licensing and food safety obligations

Australian restaurants must comply with the Food Standards Code. Specifically, you must follow Standard 3.2.2A, which mandates that food businesses need to: 

• Appoint a Food Safety Supervisor
• Provide staff training
• Maintain comprehensive food safety records 

Your Food Safety Supervisor will ensure that the business complies with food safety standards by identifying potential hazards, implementing control measures, and overseeing day-to-day food handling operations. They also train staff on proper food safety practices, maintain and review records, and act as the point of contact for food handlers and food safety authorities to prevent foodborne illness.

Of course, specific compliance requirements differ between states and territories, but they must align with national standards.

For example, in New South Wales (NSW), all food businesses must notify their local council before trading. They may also need to obtain a licence from the NSW Food Authority, depending on the food they handle, such as seafood or dairy products. 

The registration process involves submitting food business details online or by post, with periodic renewals and inspections.

Here is a quick snapshot of the licensing process you’ll go through: 

Requirement	Who Checks It	Renewal Frequency	Proof to Keep
Food Business Registration	Local council/food authority	Annual/variable	Registration certificate
Food Safety Supervisor Appointment	Local council	Ongoing	Food Safety Supervisor certificate
Staff Training Records	Health inspectors	Continuous	Training certificates and logs

3. Premises, fit-out and approvals (zoning, building, and fire safety)

Once you’ve registered your business and got the appropriate food handling licenses, you’ll need to think about your physical setup. 

Your restaurant premises must comply with zoning laws and building regulations. 

Local council approvals or Development Applications (DA) for fit-outs ensure your premises meet health, safety, and urban planning standards. Key compliance areas include:

• Effective ventilation
• Adequate handwashing stations
• Pest control measures
• Fire safety provisions
• Adherence to occupancy limits

To prove that your premises are adequate, you’ll typically need the following documentation: 

• Development Application or Complying Development Certificate (CDC) approvals
• Fire safety certificates
• Inspection reports for building and fire compliance

These documents demonstrate compliance, and you will need to show them when applying for other licences or during health inspections.

4. Liquor licensing and RSA (on-premise and online)

Besides food, your restaurant may sell alcoholic drinks. If so, you’ll need to get your liquor licenses sorted.

Each state has its own regulations for liquor licences, and these vary by the type of service your restaurant offers. Liquor licence categories may include on-premises restaurant licences, small bar licences, and packaged liquor licences for online delivery.

Also, all staff involved in serving alcohol will need to hold the Responsible Service of Alcohol (RSA) certification. 

Before applying for a liquor licence, prepare:

• A detailed business plan
• Premises floor plan indicating licensed areas
• RSA certificates for all relevant staff
• Security and management policies

Having these documents ready will help you get approved for a license quickly, so you can get your business running. 

5. Outdoor dining and footpath trading

Operating outdoor dining areas or using public land also requires council permits, which vary by state and local council regulations.

Most councils require applications to include: 

• Detailed site plan showing furniture placement
• Indemnity and hold harmless agreement
• Public liability insurance certificate (usually minimum $20 million)
• Compliance with local accessibility standards
• Approval for signage or barriers, if applicable

Ensure you check your specific council’s outdoor dining policies to avoid penalties or enforcement actions.

6. Insurance your restaurant will likely need

Insurance is absolutely essential for any restaurant — it’s the safety net that protects your business from costly incidents that could otherwise halt operations or even force closure. 

Without adequate insurance, restaurants face significant financial risks from accidents, property damage, employee injuries, and food-related claims. In many cases, landlords and councils mandate specific insurance coverage before you can open or continue trading. 

You’ll need to consider the following types of insurance before opening your doors: 

• Public liability insurance for customer injuries or property damage (strongly recommended) 
• Workers’ compensation insurance for employee injuries (mandatory) 
• Product liability insurance covering food safety claims
• Business interruption insurance that protects against unexpected closures or disasters
• Commercial property insurance covering damage to premises and contents
• Management liability insurance for risks relating to business management and legal claims
• Liquor liability insurance if serving alcohol, covering alcohol-related incidents (mandatory)
• Equipment breakdown insurance to cover the repair or replacement of kitchen machinery
• Business vehicle insurance if using vehicles for delivery or other business purposes

These coverages vary depending on your specific restaurant operations, location, and legal requirements. Review your lease and consult council regulations carefully to confirm all needed policies and coverage levels.

7. Employment, award, payroll and WHS basics

Once your core legal setup is ready, you’ll need to hire staff to run your restaurant. 

The Restaurant Industry Award MA000119 sets pay rates, classifications, and working conditions for most restaurant staff, including servers, chefs, and kitchen hands. Complying with this award ensures lawful wages, penalty rates for weekends or nights, and proper employment classification.

You’ll need to maintain the following documents and records when employing restaurant staff: 

• Payslips and payroll records
• Employee rosters and timesheets
• Employment contracts tailored for full-time, casual, or part-time staff

You’ll also need to think about Workplace Health and Safety (WHS) obligations. These include: 

• Implementing a WHS Policy to protect your staff 
• Managing risks of slips, trips, and burns
• Providing personal protective equipment (PPE)
• Staff training on safety procedures

Compliance doesn’t just protect your business legally. It helps you retain a content team of employees who will be happy to serve your customers, helping your business grow. 

8. Trade waste and grease traps

Once you’re up and running, you’ll also need to manage trade waste — particularly fats, oils, and grease (FOG)  — which can damage sewer infrastructure. Many Australian water authorities require restaurants to have properly installed and maintained grease traps, along with a trade waste management agreement.

To remain compliant, you’ll need to: 

• Maintain a regular grease trap cleaning and maintenance schedule
• Engage licensed waste transporters for grease removal
• Keep cleaning logs and maintenance records accessible for inspections

Obligations vary across water authorities, so consult your local authority’s guidelines for precise requirements and permits.

9. Playing music in your venue

Did you know that playing music publicly in your restaurant requires a licence from OneMusic Australia? OneMusic is a joint licensing body representing music creators. Streaming music via Spotify or other services without a licence violates copyright law.

Your fees will depend on several factors, which include:

• Floor space or seating capacity of the venue
• Type of music being played (background, featured, live)
• Frequency and nature of live music events

Obtaining the correct licence avoids copyright infringement penalties and supports music creators.

10. CCTV and workplace surveillance notice

Last but not least, installing CCTV in your restaurant must comply with Australian workplace surveillance laws. As an employer, you must notify staff about CCTV use through clear signage and explain data handling practices.

Here are some best practices for you to consider: 

• Place surveillance notices in visible locations
• Securely store footage and limit access to authorised personnel
• Obtain staff consent if cameras monitor staff work areas

Privacy and legislative requirements differ slightly by state, but generally aim to balance security needs with employee privacy rights.

Permits, licenses, and registrations at a glance 

Here is a comprehensive table with the licenses, permits and registrations you’ll need to start your restaurant. Remember to always check with local, state, and national authorities to confirm the specifics for your business. 

Level	License/Permit	Authority	Mandatory	Purpose	Notes
National	Australian Business Number (ABN)	Australian Business Register (ABR)	Yes	Identifies business for tax and administration	Required for most businesses
National	GST Registration	Australian Taxation Office (ATO)	Yes*	Tax registration if turnover > $75,000	Threshold applies; essential for tax compliance
State/Territory	Food Business Registration/Notification	Local Council / State Food Authority	Yes	Ensures compliance with food safety laws	Varies by state; such as NSW Food Authority, QLD Health, etc.
State/Territory	Liquor Licence	State Liquor Licensing Authority	Yes*	Authorises the sale or supply of alcohol	Different categories depending on service mode
State/Territory	Development Approval (DA) / Planning Permit	Local Council	Yes	Approves fit-out and use of premises	Required for building modifications and zoning
Local Council	Outdoor Dining / Footpath Trading Permit	Local Council	Yes*	Permits use of public space for dining	Conditions and insurance usually required
Local Water Authority	Trade Waste Permit	Local Water Authority	Yes*	Controls the discharge of trade waste into the sewer	Required if discharging greasy wastewater
National	Music Licence	OneMusic Australia / APRA AMCOS	Yes*	Licence to publicly play copyrighted music	Required for live or recorded music
Local Council	Health and Safety Inspections	Local Council / Environmental Health	Yes	Ongoing compliance with health and safety laws	Inspections linked to food business registration
State/Territory	Signage Permit	Local Council	Optional	Approval for signage on premises	Often required for external signage

*May depend on the business type, scale, and activities.

Restaurant compliance checklist 

• Complete business setup & registrations
• Register food business & meet food safety obligations
• Obtain premises, fit-out & zoning approvals
• Apply for a liquor licence & complete RSA training
• Secure outdoor dining & footpath trading permits
• Arrange essential restaurant insurance policies
• Manage employment, payroll, award & WHS obligations
• Comply with trade waste & grease trap requirements
• Obtain music performance licence (OneMusic)
• Follow CCTV & workplace surveillance notice requirements

FAQ

Which award covers restaurant staff?

The Restaurant Industry Award MA000119 covers most restaurant employees, such as waiters, baristas, chefs, and kitchen hands, ensuring fair pay and conditions under Australian workplace law.

Is a Food Safety Supervisor mandatory for restaurants?

Yes, appointing a Food Safety Supervisor is mandatory under the Food Standards Code to oversee compliance with food safety practices and staff training in Australian restaurants.

What licences does a restaurant need in Australia?

Restaurants typically require business registration, food business registration or licensing, council permits for premises and outdoor dining, and liquor licences if serving alcohol, alongside other operational compliance certificates.

How Lawpath can help 

Navigating the legal requirements for operating a restaurant in Australia can be complex. As a business owner, you need to stay informed and compliant across registrations, food safety, licensing, employment, and premises approvals to ensure your business runs smoothly and legally. For tailored support, check out professional legal document templates for essential licence applications, contracts, and policies designed for Australian restaurants or speak to a lawyer. We can help with both!