The Busy Owner

Starting out

How to start a café in Australia: licences, costs and checklist

By Sulakshi (Sue) Pallethenna

Opening a café is one of those dreams that looks gorgeous on Pinterest and slightly terrifying on paper. The coffee, the fit-out, the menu: that's the fun part. The registrations, licences and inspections? That's the part people Google at midnight.

So let's make the paperwork side less scary. This guide walks you through the main registrations and approvals, in a sensible order, with links to the official government pages so you can check the details for yourself.

It's worth starting on the paperwork early. Approvals and inspections can take weeks, and they're much easier to sort before you've signed a lease and ordered equipment than after.

Before we start, an important note: the rules for food businesses in Australia vary by state, territory and local council. What applies in Brisbane may be different in Sydney or Melbourne, and even two councils in the same state can have different processes and fees. Use this guide as a map, then confirm everything with your council and the official sources linked below. This isn't legal or financial advice.

Step 1: Find out exactly what applies to you

The best starting point is the Australian Business Licence and Information Service (ABLIS), run through business.gov.au. As business.gov.au explains, the licences and permits you need depend on your business type, your activities, your state or territory and your local government area. ABLIS lets you search for your situation and get a list.

If you're in Queensland, the state's Business Launchpad does something similar. It even uses a café as its example: preparing fresh food, selling alcohol with meals, playing background music and having alfresco dining and a footpath sign can mean licences from all three levels of government.

That's a good reminder that a café is rarely "just one licence".

Step 2: Get your ABN, business name and tax registrations

These are national, so they're the same wherever you open.

Australian Business Number (ABN). You'll need one to trade, and the Business Registration Service says registering for an ABN is free. You can apply for your business name and tax registrations at the same time.

Business name. If you trade under a name that isn't your own, you need to register a business name with ASIC, according to the Australian Business Register. At the time of writing (October 2026), the Business Registration Service lists the business name fee as $47 for 1 year or $108 for 3 years. Check the current fee before you apply, as it can change.

GST. According to business.gov.au and the ATO, you must register for GST if your GST turnover is $75,000 or more, and a new business should register if it expects to reach $75,000 in its first year. You must register within 21 days of becoming aware you'll go over the threshold. You need an ABN first.

PAYG withholding. If you'll employ staff, PAYG withholding is one of the registrations you can apply for through the Business Registration Service.

Business structure. Sole trader, partnership or company? This affects your tax, your personal liability and your paperwork. It's worth a conversation with an accountant before you sign a lease.

Step 3: Tell your council about your food business (and get licensed if required)

This is the big one for cafés, and it's where the state differences really show.

Nationally, Food Standards Australia New Zealand (FSANZ) says that under Standard 3.2.2, if you're starting a new food business, or changing the name, location or activities of an existing one, you must tell your local food regulatory agency. That applies no matter how big or small your business is.

How that works depends on where you are:

  • Queensland: Queensland Government guidance says that under the Food Act 2006, most food businesses need a licence from their local council, including a café that sells unpackaged food. The ABLIS entry for the Queensland food business licence says you may need to provide plans or drawings and appoint a Food Safety Supervisor who is available when the business is operating, and it advises talking to your council before applying.
  • New South Wales: the NSW Food Authority says cafés need to notify the local council of their business and food activity details, and that how you do this depends on the council. Cafés are regularly inspected by council officers.
  • Victoria: the ABLIS entry for Victorian fixed food premises says all food businesses must contact their local council before starting up. The council tells you your registration requirements and fees, your food business class (1, 2, 3A, 3 or 4), and whether you need a food safety program and a food safety supervisor.

Councils often want to check your premises before you open. For example, Sunshine Coast Council asks for a food business plan application so it can assess your kitchen against Food Standard 3.2.3, then arranges a food safety inspection. Once approved, you display your licence certificate when you're operating.

My tip: talk to your council's environmental health team before you finalise your fit-out. Changing a plan is cheap. Ripping out a finished kitchen is not.

Step 4: Appoint a Food Safety Supervisor and train your food handlers

Since December 2023, a national standard called Standard 3.2.2A has applied to food service, catering and retail businesses that handle unpackaged, potentially hazardous, ready-to-eat food. FSANZ says this generally includes cafés.

In short, according to FSANZ:

  • Food Safety Supervisor (FSS): category one and two businesses must appoint a certified FSS. The certificate must come from a registered training organisation or an organisation recognised by the food regulator, and must have been obtained in the past five years. The FSS must be "reasonably available" to advise and supervise food handlers (FSANZ, Food safety supervisor).
  • Food handler training: each food handler who handles unpackaged, potentially hazardous, ready-to-eat food must have completed a food safety training course, or have adequate skills and knowledge, before doing that work (FSANZ, Food handler training).
  • Showing food is safe: category one businesses, which make ready-to-eat potentially hazardous food and serve it, must also keep evidence that their critical food safety controls are managed (FSANZ, Standard 3.2.2A). Most cafés that cook on site will fall into category one, but check with your council.

FSANZ notes that categories one and two are separate from the risk classes states use (like Victoria's Class 1 to 4), so ask your council how they line up where you are. In Victoria, Safe Food Victoria says class 1, most class 2 and class 3A premises must have a food safety supervisor.

The habits that stick are the ones built into the shift itself: temperature checks on the opening checklist, labelling done as food goes into the fridge, and a quick reminder at the start of each shift.

Step 5: Check planning, signage, outdoor dining and other permits

Depending on your site and plans, you might also need:

  • Planning or development approval for using the premises as a café
  • Footpath or outdoor dining permits (Brisbane City Council, for example, lets you apply for a footpath dining permit alongside your food business licence)
  • Signage approval for footpath signs or shopfront signs
  • A liquor licence if you want to sell alcohol, which is handled by your state
  • Music licensing if you play background music

ABLIS or Queensland's Business Launchpad will flag which of these apply to your address.

Step 6: Get ready to employ people

If you're hiring, you'll need to understand pay rates, awards and your obligations as an employer. The Fair Work Ombudsman is the official place to check which award applies and what you need to pay. You'll also need to think about superannuation, workers' compensation insurance (which is state-based) and PAYG withholding. An accountant or bookkeeper can help you set this up properly from day one.

What about costs?

I'm deliberately not giving you a "it costs $X to open a café" figure, because honestly, it depends on too much: your location, lease, fit-out, equipment, council fees and how much you're building from scratch. Any single number would be a guess.

What I'd suggest instead is building your own cost list with these headings, and getting real quotes for each:

  • Registrations: ABN (free), business name (see the current ASIC fee), and any state or council fees
  • Council costs: food business licence or registration, plan assessment, inspections, permits
  • Premises: bond, rent, fit-out, plumbing, electrical, signage
  • Equipment: coffee machine, grinders, fridges, cooking equipment, POS
  • Training: Food Safety Supervisor certification and any staff training
  • Insurance: public liability, contents, workers' compensation
  • Opening stock and packaging
  • Working capital: enough to cover wages, rent and stock while you build up regulars

Some costs are easy to underestimate, such as repairs and maintenance, equipment servicing, and the slower trade you might see in the first few months. Building in a buffer for them gives you breathing room.

Your café start-up checklist

  • [ ] Search ABLIS (or Business Launchpad in Queensland) for your exact address
  • [ ] Choose your business structure with an accountant
  • [ ] Apply for your ABN, business name and tax registrations
  • [ ] Talk to your council's environmental health team before finalising your fit-out
  • [ ] Submit plans if your council requires them
  • [ ] Apply for your food business licence, registration or notification
  • [ ] Appoint a certified Food Safety Supervisor
  • [ ] Make sure every food handler is trained or has adequate skills and knowledge
  • [ ] Set up your food safety records if you're a category one business
  • [ ] Check planning, signage, outdoor dining, liquor and music permits
  • [ ] Check awards and pay rates with the Fair Work Ombudsman
  • [ ] Organise insurance, including workers' compensation
  • [ ] Book your council inspection and display your licence once approved

FAQ

Do I need a food licence to open a café in Australia? Every food business must tell its local food regulatory agency about its business, and in many places, including Queensland, a café needs a food business licence from its council. The exact process depends on your state and council, so check with them first.

Can I be my own Food Safety Supervisor? In many cases, yes. Safe Food Victoria, for example, says the supervisor can be the owner, an employee or someone outside the business, as long as they meet the requirements. They need a current certificate and must be reasonably available while food is being handled.

How long does it take to get approved? It varies by council and by how ready your premises are. Some councils ask you to apply a few weeks before opening, and most will want to inspect first. Contact your council early and ask about their timeframes.