Starting an Auto Repair Shop in Australia
From ABN to first customer - your complete Australian roadmap. State requirements, real costs, proven strategies.
"The Australian auto repair industry is worth $17.3 billion AUD. Here's your blueprint to enter it successfully."
📋 Quick Overview
Startup Costs (AUD)
- Equipment$50K-180K
- Location (6 months)$25K-100K
- Licensing$1.5K-5K
- Insurance$6K-18K/yr
- Total Range$100K-400K
Timeline to Launch
- ABN & registration1-2 weeks
- Location search4-10 weeks
- Buildout8-14 weeks
- Licensing2-4 weeks
- Total Timeline3-6 months
Step 1: Business Registration
ABN & Business Structure
Australian Business Number (ABN)
Free registration at business.gov.au. Takes 15 minutes online. You'll receive your ABN immediately.
Business Name Registration
If trading under a different name than your personal name:
- • $37 for 1 year
- • $88 for 3 years (better value)
- • Register through ASIC Connect
Company Registration (Pty Ltd)
$538 with ASIC if incorporating. Recommended for liability protection once established.
State-Specific Licensing
Each state has different licensing requirements for motor vehicle repairers:
New South Wales
- • Motor Vehicle Repairer Licence ($267)
- • Individual certification ($90)
- • Apply via NSW Fair Trading
Victoria
- • Vehicle Repairer Registration ($216.70)
- • Consumer Affairs Victoria
- • Trade measurement if selling fuel
Queensland
- • Motor Vehicle Repairer Licence ($293.50)
- • Individual tradesperson licence ($108.40)
- • Office of Fair Trading
Western Australia
- • Motor Vehicle Repairer Licence
- • Consumer Protection WA
- • Similar requirements to QLD
Location & Lease Strategy
Your location determines 60% of your success. Here's what to look for:
Workshop Requirements
Physical Specs
- • Size: 150-500 sqm (2-6 bays)
- • Ceiling: Minimum 4.5m for hoists
- • Power: 3-phase essential
- • Parking: 4-8 customer spaces
Location Factors
- • Zoning: Light industrial/commercial
- • Visibility: Main road frontage
- • Access: Easy on/off traffic
- • Neighborhood: Middle-income areas
Lease Costs by City (per month)
"Regional areas offer better value. A workshop in Geelong or Gold Coast costs 40-60% less than Melbourne or Sydney CBD with similar customer demographics."
Equipment Investment
Essential Equipment (AUD)
Vehicle Hoists
2-4 hoists × $4,000-8,000 each
Diagnostic Scanner
Professional OBD-II system
Air Compressor
Industrial 60-80 gallon
Tyre Equipment
Changer + balancer combo
Total Equipment
Minimum to start trading
Smart Money Move
Check Gumtree and local auctions for used hoists and equipment. Many shops upgrading or closing sell quality equipment at 40-60% off retail. Just ensure hoists pass safety inspection.
Insurance Requirements
Required Insurance (Annual Costs)
Public Liability
$10-20 million coverage required
Motor Vehicle Insurance
Covers customer cars in your care
Workers Compensation
Mandatory for all employees
Total Insurance
First year minimum
Digital Presence (Non-Negotiable)
Critical: Digital Before Physical
Set up your digital presence in Week 1, before you sign a lease.
76% of Australians search online before choosing a mechanic. No website = invisible to 3 out of 4 potential customers.
Week 1 Digital Checklist:
First Year Financial Projections
"Break-even typically happens month 7-10 in Australia. Higher operating costs than the US, but also higher average job values."
Common Mistakes to Avoid
Underestimating Compliance Costs
Not budgeting for state licensing, environmental permits, and ongoing compliance.
Solution: Add 15% buffer to all official cost estimates for licensing and unexpected requirements.
No Digital Presence at Launch
"We'll build a website once we get some customers."
Solution: Digital first, physical second. Your online presence works 24/7 to attract customers before you even open the doors.
Wrong Suburb Selection
Choosing based on cheap rent rather than customer demographics.
Solution: Target middle-income suburbs. Research car ownership rates and average vehicle age in the area.
Launching in Australia? We'll Build Your Digital Foundation
Website with online booking, Google Business Profile optimization, and local SEO - ready before your opening day.
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