# How to start a home bakery in Australia: registration, ABN, GST and your first month

> Start a home bakery in Australia: a free ABN, council registration or notification, allergen information, a Food Safety Supervisor where needed and GST at A$75,000.

To start a home bakery in Australia you need four things before your first
sale: an ABN (free), a registration or notification with your local council
(or the state body your council points you to), a kitchen that passes the
council's check, and allergen information for everything you sell. Add a
registered business name ($47 for one year or $108 for three) if you trade
under anything other than your own name, a certified Food Safety Supervisor if
you make unpackaged, ready-to-eat food that needs refrigeration, and GST
registration once your turnover reaches A$75,000. The council step sets your
timeline, so start it first and ask how long approval takes.

The steps below are in the order to do them. For what each state calls its
registration and which foods it restricts, use the state table in
[home baking laws by state and country](/blog/home-baking-laws-by-state-and-country);
for the five questions to ask your council, see
[do I need a license to sell cakes from home](/blog/do-i-need-a-license-to-sell-cakes-from-home).
Rules change and councils differ, so check with your local council before you
rely on any step here.

## Step 1: decide your menu before you call anyone

Your menu decides your category, and your category decides almost everything
else. Write down every product you plan to sell in the first six months, with
its fillings and finishes, and sort it into two lists:

- **Shelf-stable:** bread, sourdough, cookies, biscuits, brownies, slices,
  buttercream or ganache cakes, fondant cakes, gingerbread, macarons with
  shelf-stable fillings.
- **Needs refrigeration:** cheesecake, fresh cream, custard or curd fillings,
  cream cheese frosting, fresh fruit tarts.

The first list is what councils approve in home kitchens with the least
friction. The second list moves you up a class in Victoria, is excluded
outright in the ACT, and triggers the Food Safety Supervisor rules below in
most states. If you can launch with the first list only, do, and add the
second once you know your council's view.

## Step 2: get an ABN (free, usually instant)

Apply on the Australian Business Register. It is free, and if every detail
checks out you get the number as soon as you finish the online application;
if it needs manual review, allow up to 20 business days. You need to be
running a business to be entitled to one, which a home bakery taking orders
is. You can register a business name and GST in the same application.

## Step 3: register a business name, if you need one

If you sell as "Jane Smith", you do not need to register anything extra. If
you sell as "Jane's Sourdough" or "Little Crumb Cakes", register the name
with ASIC: $47 for one year or $108 for three. Check the name is free before
you print labels or build a website around it.

## Step 4: talk to your council and register or notify

This is the step that sets your timeline. Ring your council's environmental
health team with your menu from Step 1 and ask:

1. What registration, licence or notification do I need, and what does it cost?
2. Will you inspect before I start trading, or after?
3. Do I need planning approval to run a food business from home?
4. Do I need a Food Safety Supervisor?

What happens next depends on your state. In NSW you notify your council if you
sell direct to customers, and the NSW Food Authority if you sell to cafes for
resale. Victoria classes shelf-stable cakes as Class 3 and cream or custard
cakes as Class 2. Queensland treats making cakes as manufacturing, so most
home bakers need a council food business licence. The ACT wants food safety
supervisor training started before you apply. The full table:

| State | Short version | Detail |
|---|---|---|
| NSW | Notify council (or NSW Food Authority for resale) | [laws table](/blog/home-baking-laws-by-state-and-country) |
| VIC | Council registration, Class 3 or Class 2 | [laws table](/blog/home-baking-laws-by-state-and-country) |
| QLD | Council food business licence | [laws table](/blog/home-baking-laws-by-state-and-country) |
| WA | Register or notify with local government | [laws table](/blog/home-baking-laws-by-state-and-country) |
| SA | Food Business Notification to council, no fee | [laws table](/blog/home-baking-laws-by-state-and-country) |
| TAS | Proposal, inspection, then registration or notification | [laws table](/blog/home-baking-laws-by-state-and-country) |
| ACT | Registration with ACT Health, low-risk food only | [laws table](/blog/home-baking-laws-by-state-and-country) |
| NT | Registration with NT Health | [laws table](/blog/home-baking-laws-by-state-and-country) |

Fees are set by each council and published on its website or fee schedule,
so ask for the registration fee and the annual renewal or inspection fee
separately. Budget for both.

## Step 5: get the kitchen ready for inspection

FSANZ's home-based business guidance sets the baseline every council works
from: wash and dry hands with warm running water, soap and single-use towels;
keep food away from pets, children, visitors, waste, chemicals and pests;
keep benches, utensils and containers clean and sanitised; and hold
potentially hazardous food at 5°C or colder. Queensland's home-based page
spells out what inspectors there look for, and it is a good checklist anywhere:

- surfaces that can be easily and effectively cleaned
- a dedicated hand wash basin in the food preparation area
- business ingredients stored separately from household food
- enough refrigerated storage
- a probe thermometer accurate to plus or minus 1°C

The two things that most often hold up a first inspection are the hand basin
and the storage split. Sort them before you book the visit.

## Step 6: food safety training and the Food Safety Supervisor

Since December 2023, FSANZ Standard 3.2.2A has applied to businesses that
handle unpackaged, ready-to-eat, potentially hazardous food, and FSANZ says it
may apply to home-based businesses too.

- **Food handler training** for everyone who handles the food, covering safe
  handling, contamination, cleaning and sanitising, and personal hygiene.
  FSANZ lists I'm Alert and DoFoodSafely as free online options.
- **A Food Safety Supervisor** with recognised certification obtained in the
  last five years. Queensland also requires licensed home-based businesses to
  nominate one. Certification is a paid course through a registered training
  provider; your state food authority lists the approved ones.
- **Records** (category one businesses only): evidence that you control
  temperatures, cleaning and the other prescribed steps.

If your menu is shelf-stable bread, biscuits and buttercream cakes, your
council may tell you the standard does not apply. Get that answer in writing.
Do the free food handler course either way; it costs an afternoon and
inspectors notice.

## Step 7: labels and allergens

Plain English allergen labelling (PEAL) applies to packaged food from
25 February 2024, and the transition ended on 25 February 2026, so every
packaged product you sell now needs it:

- allergens named in the ingredient list in **bold**, using the required
  names (wheat, milk, egg, soy, sesame, peanut, almond, and so on)
- a separate summary statement starting with "Contains"
- "gluten" in that statement where wheat, barley, oats or rye are present

For unpackaged food, such as a custom cake handed over in a box, allergen
information must be displayed with the food or available on request. For a
home baker that means a written allergen list for every product, kept current
whenever you change a supplier or recipe.

## Step 8: GST and income tax

You do not charge GST until you are registered, and you must register once
your GST turnover reaches **A$75,000** in the current or projected 12 months.
Cakes, pastries, biscuits and sweet-iced bread are taxable at 10 percent once
you are registered; plain bread is GST-free. The detail, including the
21-day deadline, is in
[do I charge GST on cakes in Australia](/answers/do-i-charge-gst-on-cakes-in-australia).

Below the threshold you still declare your bakery profit in your individual
tax return. Keep every receipt for ingredients, packaging and equipment from
day one, because they reduce that profit.

## Step 9: insurance

Whatever your council requires, in practice you will need:

- **Public and product liability:** markets, venues, wedding planners and
  wholesale customers usually ask for a certificate before they will deal
  with you. Product liability is the part that covers someone falling ill
  from what you sold.
- **Home and contents:** tell your insurer you run a business from home.
  Many home policies exclude business activity, and a kitchen fire during a
  bake can fall outside cover.
- **Workers compensation:** check your state scheme's rules before you
  employ anyone.

Get at least two quotes from a broker who knows food businesses. Prices vary
too much by state, turnover and product mix to quote a typical figure.

## Step 10: price your first products

Price from your real costs before you take an order, not from what the bakery
down the road charges. Cost the ingredients at what you paid, add packaging,
add your hours at a wage you would accept, then add margin. Worked examples:

- cakes: [cake pricing calculator](/blog/cake-pricing-calculator) and
  [cake prices by country](/blog/cake-prices-by-country)
- cookies: [how to price cookies for a cookie business](/blog/how-to-price-cookies-for-a-cookie-business)
- bread: [how to price sourdough bread](/blog/how-to-price-sourdough-bread)
- selling to cafes: [wholesale bread pricing for cafes](/blog/wholesale-bread-pricing-for-cafes)

If you expect to cross A$75,000, price so that adding 10 percent GST later
does not wreck your margins or your customers' expectations.

## Step 11: take orders and deposits properly

Decide your order rules before the first enquiry arrives: lead time, minimum
order, deposit, balance due date and cancellation terms. For custom cakes,
50 percent at booking with the balance 7 to 14 days before the event is the
common structure; see [how much deposit for a custom cake](/blog/how-much-deposit-for-a-custom-cake)
and the copyable [cake order terms](/blog/terms-to-get-signed-for-custom-cake-orders).
For bread and cookies sold weekly, take payment in full at order. Australian
Consumer Law limits what you can keep on cancellation to your real loss, so
write your terms around that.

## Your first-month checklist

| Week | Do |
|---|---|
| Before week 1 | Menu sorted into shelf-stable and refrigerated; council called |
| Week 1 | ABN; business name if needed; council application lodged; free food handler course done |
| Week 2 | Kitchen fixes (hand basin, separate storage, thermometer); insurance quotes |
| Week 3 | Inspection or approval; Food Safety Supervisor course if your council says you need one |
| Week 4 | Allergen list and labels for every product; prices costed; order terms written; first orders |
| Ongoing | Receipts kept; GST turnover tracked against A$75,000 |

## Where ibakepro fits

ibakepro is bakery management software for Australian bakeries, from a first
home kitchen to bakeries with staff, wholesale accounts and more than one
site. The allergen list your council asks to see is built from the
ingredients in each recipe, so it is there before the first inspection, and
every product is costed from what you paid for those ingredients. Deposits and
balances are taken in Australian dollars, GST is added at 10 percent once you
register, and Australian accounts keep their data in Sydney. Growth and
Business add the temperature, cleaning and corrective action records a council
officer checks. Essentials is A$26 a month, Growth A$33 and Business A$89,
with a 14-day free trial. See [orders and quotes](/features/orders-and-quotes),
[recipe costing](/features/recipe-costing) and
[allergen management](/features/allergen-management).
