How to Start a Consultancy in Australia: A Guide For Subject Matter Experts

Starting a consultancy in Australia is an appealing path for subject matter experts who want flexibility, autonomy, and a chance to command higher rates while delivering value to clients.

However, many budding consultants get caught in the maze of business setup, legal risks, and compliance traps before realising profits. 

If you’ve ever wondered how to build a consulting business from scratch in Australia, this practical guide is for you. Here’s how to streamline the founding process, avoid hidden pitfalls, and lay the groundwork for a scalable, reputable consulting firm in the Australian market.​

What a consulting business is (and isn’t)

A consulting business is an enterprise where you provide expert advice and solutions in a particular field as an independent contractor, rather than as an employee or generic contractor.​

A consultant exercises significant control over how, when, and where they work. This is in contrast to contractors and employees (full time or part-time). Contractors usually work toward specific deliverables but may operate more hands-on. Meanwhile, employees work under direct supervision and have restricted IP rights; employees govern their tax and super obligations. 

Overall, consultants retain more autonomy and responsibility for results.

• IP: As a consultant, you typically retain or assign intellectual property as agreed. Employees relinquish IP to employers, while contractors may have more hybrid arrangements.
• Control: Consultants and contractors control their work arrangements, whilst employees do not.
• Taxes: Consultants handle their own taxes as a business would (PAYG instalments, GST if registered, etc. Taxes for contractors depend on their legal setup, while employers directly manage taxes for their employees. 

Here is a quick breakdown of how consulting differs from contractor and employee agreements. 

Role	Control	IP Ownership	Tax/Super
Consultant	High	Agreed (assign/license)	Self-managed (ABN, GST, PAYG) ​
Contractor	Medium	Varies	Self-managed
Employee	Low	Employer owns	Employer manages

Step-by-Step: How to start a consulting business in Australia

Ready to become a consultant and make your own rules? Here’s a streamlined, step-by-step process for launching your consulting business, including consulting legal requirements. 

1. Validate your niche and positioning

Research which problems and client types align with your expertise and have enough demand. Survey potential clients and analyse competitors.

• Do: Focus on a clear, solvable client pain point.
• Don’t: Try to serve everyone.

2. Choose a business structure

Decide among sole trader, partnership, company, or trust as your business structure based on liability comfort, costs, and growth plans.

• Do: Sketch pros/cons with an accountant or Lawpath tools.
• Don’t: Ignore long-term tax and compliance impact.

3. Register ABN, business name, and GST

Obtain an ABN for consultants and register a business name via business.gov.au or Lawpath. Register for GST if your projected turnover exceeds $75,000 or if clients expect GST invoices (common in B2B).

• Do: Register for GST early if targeting enterprise clients.
• Don’t: Delay ABN registration (required for proper invoicing).

4. Set up banking & accounting

Open a dedicated business bank account and select cloud accounting software for invoices, expenses, BAS, and record-keeping.

• Do: Keep personal and business finances separate.
• Don’t: Use personal accounts for client payments.

5. Draft core contracts (Consultancy Agreement, NDA, IP)

Prepare or customise a consulting agreement template and an NDA for confidential engagements. Clarify IP assignment/licence.

• Do: Cover deliverables, fees, termination, IP, and liability.
• Don’t: Rely on handshake deals or generic templates.

6. Secure professional indemnity and other types of insurance 

Professional indemnity insurance is essential for protecting against claims of professional negligence. You may also need other types of consultant insurance in Australia, like professional liability and cyber protection. 

• Do: Compare quotes and reviews to find the best fit.
• Don’t: Ignore insurance for cost-saving.

7. Develop your pricing and quoting workflow

Establish a rate card (hourly, day, fixed project, or retainer), quote templates, and minimum viable billing practices.

• Do: Benchmark competitors and test for value-based pricing.
• Don’t: Undercharge; know your worth.

8. Implement compliance and record-keeping

Ensure that you have the proper licenses to operate in your state and business niche. Maintain accurate records of income, expenses, contracts, and insurance in cloud tools for tax and audits.

• Do: Schedule monthly bookkeeping reviews.
• Don’t: Leave paperwork until year-end.

9. Go-to-market (website, lead magnets, referrals)

Build a basic website with service descriptions, a lead magnet (e.g., a guide or checklist), and set up a LinkedIn authority plan. Activate referral outreach and client testimonials.  

• Do: Set up a robust Privacy Policy when collecting personal data
• Don’t: Wait for work to find you. Be proactive.

10. Manage ongoing risks (conflict checks, scope creep)

Establish processes for checking conflicts of interest and formalising any change in project scope.

• Do: Use a change order template for adjustments.
• Don’t: Ignore warning signs of disputes or trust your memory only.

Follow these logical steps — from defining your niche and structure, through business setup and compliance, to contract, pricing, and market activation — to create a sustainable, professional consulting business in Australia.​

Choose the right consulting business structure (with examples)

You will need to decide the type of business you want to establish. Is your company a sole trader, a partnership, or a company?

• 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 has a more complex structure and can legally sue and be sued. In other words, it is a legal entity in itself. Companies are incorporated under the Corporations Act 2001 (Cth) and are governed by the Australian Securities and Investments Commission (ASIC).

Your business structure can have a strong impact on your business finances and long-term success. Therefore, you should do your research before making a decision. 

Here is our snapshot guide to how each structure is different. 

Structure	Control	Liability	Tax	Admin Cost	Use Case
Sole Trader	Full	Unlimited	Personal rate	Low	Low risk, 1-person services ​
Company	Directors	Limited	Company rate	Medium-High	Higher growth, asset protection
Partnership	Shared	Unlimited*	Split b/w partners	Low-Med	2+ founders, joint ventures
Trust	Trustee	Limited**	Flexible	High	Asset holding, family tax planning

While the decision is ultimately up to you, our recommendation is: 

• Choose a sole trader structure if you’re starting solo with minimal risk or capital. 
• Choose to set up a company if you want asset protection, growth, or to work with enterprise clients.

To set up a trust, it’s best to consult a legal or accounting professional, as this option has many benefits but is more complex. 

Licences, registrations and when they apply

Most consultants don’t need a licence, but niche advisors might. It’s best to check ABLIS licenses in Australia to confirm whether or not you need specific licensing to operate in your state and niche. 

There is no generic consultant’s license in Australia. As such, most consulting fields require only an ABN and a business structure. However, specific niches like financial services, migration, engineering, legal, and certain labour-hire or medical advice require additional accreditations.​

Also, always check local council requirements if working from home or in person.

Essential consulting contracts

Consultancy contracts protect both your business and your clients. A strong contract should include the following:

• Scope & deliverables (clear milestones & outputs)
• Change control/variation (process for changes in scope)
• Payment terms (amount, schedule, overdue penalties)
• Expenses (what’s reimbursable and what’s not)
• IP ownership (clarify if client gets full ownership or a licence to use)
• Confidentiality/non-disclosure
• Data & privacy obligations (esp. with personal or sensitive info)
• Limitation of liability (cap the maximum claim exposure)
• PI insurance requirement (client may request this)
• Dispute resolution process (mediation before litigation)
• Termination provisions (notice periods, grounds)

Here are some sample clauses to include in your consulting contract. 

• Scope: “The consultant will provide the agreed deliverables outlined in Schedule 1, subject to client cooperation and timely feedback.”
• Payment: “Invoices are payable within 14 days. Late payments may incur a 2% monthly fee.”
• IP Ownership: “Except as otherwise agreed, intellectual property created during the services will be assigned to the client upon receipt of full payment.”

Lawpath offers free and low-cost professional legal templates and documents that you can tailor to your business requirements.

Pricing your consulting services (rates, retainers, value-based)

Consultancy rates fall into these common models (note that actual rates vary by niche and seniority):​

• Hourly/Day rate: Typically $100–$500+ per hour or $1,000–$2,500+ per day for micro-consulting in metro Australia.
• Fixed fee/project: Best for well-defined scopes (e.g., $5,000 for a compliance audit).
• Retainer: Ongoing access for a set monthly fee (e.g., $2,000/month for X hours). Suited to advisory, “on-call” work.
• Value-based: Charge a percentage of the client’s value gain (advanced, more common at scale or with senior advisers).

For example, if you want $150,000 in annual income and target 65% billable utilisation (about 120 billable days/year), your minimum viable day rate = $1,250 plus overheads.

Here is a quick summary of pricing models, when they work best, and the main risks and cash flow considerations. 

Pricing Model	Best For	Main Risk	Cash Flow
Hourly/Day	Ad hoc, small briefs	Feast/famine, time cap	Lumpy, varies
Fixed Fee	Defined projects	Scope creep	Better than hourly
Retainer	Ongoing advisory	Underutilisation risk	Predictable/monthly
Value-based	Transformative work	Hard to price; risky	Can be lumpy, high

Taxes and compliance for consultants

Consultants work independently. Even as sole traders, they are a stand-alone business. As such, it’s key that you track all your income and expenses as a business would. More specifically, you must track:

• All income (issued invoices and received payments)
• GST (if registered); report via Business Activity Statements (BAS)
• PAYG instalments (for own tax prepayments)
• Deductible expenses: software, insurance, home office costs, travel, etc. 
• Superannuation for yourself (if a company or via voluntary contributions).​

Remember that tax compliance is not optional. It’s a crucial responsibility for any consulting business in Australia. Make sure to stay on top of your taxes with good organisation and robust record-keeping. 

Marketing and first 10 clients (scrappy, budget-first)

Now that your business is all set, it’s time to get your first clients! To gain traction quickly and on a budget, focus on building a strong “about” page that clearly explains your core consulting offer. Publish short case briefs and testimonials to build credibility, and use LinkedIn to share authority posts and actively engage your network.

Once you’ve landed your first clients, ask for referrals from your contacts. You can also speak at local or digital meetups to increase visibility and offer practical lead magnets like readiness checklists or free consultations. 

Avoid costly traditional ads — instead, lean on credibility, referrals, and niche expertise for steady growth.

FAQ

Do I need a licence to be a consultant in Australia?

In most fields, you don’t need a “consultant’s licence”. That said, advisors in regulated professions (like finance, tax, or migration) do. Always check ABLIS for niche rules.​

Should consultants register for GST?

You must register for GST if you expect your turnover to exceed $75,000 per year, or if your clients expect you to charge GST (often in B2B). It’s good practice to monitor revenue regularly.​

What should a consultancy agreement include?

A consultancy agreement should clearly set out the project scope, fee terms, IP, confidentiality, expenses, insurance, dispute resolution, and termination provisions. Clear agreements help reduce disputes and align expectations.​

How Lawpath can help 

Launching a consulting business in Australia can be a rewarding step toward professional and financial independence. However, for it to work, you must set it up with clarity, compliance, and strong processes. 

Ready to launch? Use Lawpath to streamline registration, find legal templates, and reduce admin hassle — so you can deliver real client value, faster.​