Written by upcover's editorial team · Updated November 2026
Start a cleaning business in Australia commonly involves choosing services and a structure, getting an ABN, checking licences and planning for GST. Hiring staff or paying subcontractors may bring award pay rates and the ATO's taxable payments reporting. New owners also commonly review insurance for cleaning businesses before the first job.
Key takeaways:
- The Australian Business Register charges no fee for an ABN (business.gov.au).
- GST registration is compulsory from $75,000 GST turnover (ATO).
- Paying contractors may mean lodging a taxable payments annual report (TPAR) with the ATO.
- Victoria licenses businesses that supply workers to clean commercial premises (Labour Hire Authority).
How to start a cleaning business: step-by-step checklist
Starting a cleaning business commonly follows these steps, each linked to the official body that explains it.
Cleaning business start-up checklist
| Step | What it involves | Official source |
|---|
| Define your business | The services, clients and equipment you'll start with | business.gov.au |
| Choose a structure | Sole trader, partnership, company or trust | NSW Government |
| Get an ABN | No fee through the Australian Business Register | business.gov.au |
| Register a business name | Unless you trade under your own name or another exception | ASIC |
| Register for GST | At $75,000 GST turnover, within 21 days of being required to | ATO |
| Check licences | Search the Australian Business Licence and Information Service (ABLIS) | business.gov.au |
| Victorian labour hire | A licence if you supply workers to clean commercial premises in Victoria | Labour Hire Authority |
| Hire staff | Which award applies, and its pay rates | Fair Work Ombudsman |
| Workers' compensation | Insurance for workers who get sick or injured because of work | Safe Work Australia |
| Pay contractors | A TPAR by 28 August if the ATO's conditions are met | ATO |
Swipe left or right to see the full table.
What type of cleaning business can you start in Australia?
Working out how to start a cleaning business usually begins with one service type, such as house, end-of-lease, office, carpet or window cleaning.
Common cleaning business types (non-exhaustive)
| Cleaning type | Typical clients and work | Extra things to check |
|---|
| House or domestic | Homeowners and tenants | Keys and access to private homes |
| End-of-lease (bond) | Tenants and real estate agents | The agent's conditions for the finished clean |
| Office and commercial cleaning | Businesses and building managers | After-hours keys; Victorian labour hire licensing if you supply workers |
| Carpet and upholstery | Homes and businesses | Extraction machines and chemicals in client premises |
| Window | Shops, offices and homes | Heights, ladders and access methods |
Swipe left or right to see the full table.
upcover's guide to becoming an office cleaner explains office work, including the clearances some buildings ask for.
Can a cleaner be a sole trader?
A cleaner can run their own business as a sole trader, and the other structures are a partnership, company or trust (NSW Government). business.gov.au says "Before you start your business, you'll need to decide its legal structure" (business.gov.au). An accountant can explain how each structure affects tax and registrations.
If you start your own cleaning business as a sole trader, a separate business bank account keeps business income and costs apart from day one.
How to register a cleaning business in Australia
Learning how to register a cleaning business commonly involves an ABN, any business name and GST once your business reaches the threshold.
Getting an ABN
The Australian Business Register charges no fee for an ABN, and "To get one you need to be running a business or other enterprise" (business.gov.au). upcover's guide on how to get an ABN explains the steps.
Registering a business name
ASIC says "You must register a business name if you run a business in Australia and are not trading under your own name" (ASIC). Exceptions include a sole trader using their "first name and surname" and a partnership "under all partners' personal names" (ASIC). upcover's guide to registering a business name explains how to apply.
When does a cleaning business need to register for GST?
The ATO says a business must register for GST when its GST turnover is "$75,000 or more" (ATO). GST turnover is "gross income from all businesses minus GST" (ATO). Once registration is required, "you need to do so within 21 days" (ATO).
What licences are needed to start a cleaning business?
Licences depend on your business type, activities, state or territory and local government area, and business.gov.au points to ABLIS to find them.
In Victoria, "Companies that supply workers to perform cleaning activities at commercial premises are labour hire providers" (Labour Hire Authority). Commercial premises "can include shops, restaurants, factories, offices, schools, construction sites and other premises" (Labour Hire Authority).
"Under Victorian law, labour hire providers must hold a licence" (Labour Hire Authority). Penalties for unlicensed labour hire "may exceed" $660,000 for a corporation and $160,000 for an individual (Labour Hire Authority).
Victorian examples published by the Labour Hire Authority (non-exhaustive)
| Your setup (Victoria) | What the Labour Hire Authority says |
|---|
| Sole trader doing commercial contracts personally, with an employee for home cleans | The sole trader "is not required to hold a labour hire licence" |
| One-director company where the director cleans | The company "does not require a labour hire licence" as the director "personally performs the cleaning work" |
| Business supplying cleaners to an office building | The business "is a labour hire provider and is required to hold a labour hire licence" |
| Business cleaning private homes only | The business "would not require a labour hire licence" |
Swipe left or right to see the full table.
A Victorian business unsure of its position can ask the Labour Hire Authority.
What qualifications do you need to be a cleaner?
Clients, contracts or employers may ask for training, checks or certifications, and courses such as the Certificate III in Cleaning Operations exist (Skills SA).
Skills new operators commonly build include (non-exhaustive):
- using cleaning machines and products on different surfaces
- customer service, quoting and sales
- basic bookkeeping and business management
- physical work, such as moving equipment between jobs
What applies when a cleaning business hires staff or subcontractors?
Contract cleaning employees commonly fall under the Cleaning Services Award, and a cleaning business paying contractors may need to lodge a TPAR with the ATO.
Hiring employees for a cleaning business
The award applies to "employers in the contract cleaning services industry" and employees who fit its classifications (Fair Work Ombudsman). The Fair Work Ombudsman's Pay and Conditions Tool works out pay rates, penalty rates and allowances.
Safe Work Australia says "Under Australian law, employers must have insurance to cover their workers in case they get sick or injured because of work" (Safe Work Australia). Who counts as a worker, and any exemptions, depend on your state or territory scheme.
From 1 July 2026, employers "calculate, pay and report super guarantees under Payday Super" (ATO). An accountant or bookkeeper can help with payroll and super.
Portable long service leave in contract cleaning
NSW and Queensland run portable long service leave schemes for the contract cleaning industry, each with an employer registration deadline (NSW Government; QLeave).
Contract cleaning portable long service leave in NSW and Queensland
| State | Scheme | What employers do | Source |
|---|
| NSW |
Long Service Corporation contract cleaning scheme |
"Employers must register with LSC within one month of becoming an employer of one or more employees performing cleaning work" |
NSW Government |
| Queensland |
QLeave contract cleaning scheme |
"Employers must register within seven (7) days of becoming an employer in the contract cleaning industry" |
QLeave |
Swipe left or right to see the full table.
Other states and territories may run their own schemes, so contract cleaning employers elsewhere can check with their state's portable long service body.
Using subcontractors in a cleaning business
The ATO says you must lodge a TPAR if your business provides cleaning services, pays contractors to provide them and has an ABN (ATO). Where a business also provides other services, the test is whether cleaning payments received are "10% or more of your gross business income" (ATO). The TPAR is due "by 28 August", and payments to employees aren't reported (ATO).
"Sham contracting is illegal under the Fair Work Act 2009", according to the Fair Work Ombudsman. Employee status is assessed on "the real substance, practical reality and true nature of the working relationship" (Department of Employment and Workplace Relations). The test applies from 26 August 2024 to most workers and businesses under the Fair Work Act (Department of Employment and Workplace Relations).
A lawyer can review a subcontracting arrangement before work starts.
What should a cleaning service agreement include?
A cleaning service agreement commonly sets out the work and its frequency, exclusions, supplies, the price, payment terms and how either side can end it. A lawyer can review a cleaning contract template or agreement before you use it.
Common items include (non-exhaustive):
- the areas, tasks and how often they're cleaned
- tasks that are excluded
- who supplies equipment and cleaning products
- rates, payment terms and cancellation
- how damage or breakage is reported and handled
- keys, alarm codes and access
Some cleaners use a lock box and keep a key log, which records who held each key and when. Wet-floor signs, cords kept out of walkways and agreed handling of fragile items may help reduce incidents.
Commercial clients and building managers may ask for a certificate of currency, a document that confirms an insurance policy is active, before work starts.
How do you get clients for a new cleaning business?
New cleaning businesses commonly find early clients through referrals, a Google Business Profile and direct approaches to property, office and facility managers. Defining the ideal customer first can help: the property type, the suburbs and how often they need cleaning.
Common ways to find cleaning clients include (non-exhaustive):
- referrals and refer-a-friend offers, such as a discount on the next clean
- a Google Business Profile with client reviews
- property managers and real estate agents for end-of-lease cleans
- office and facility managers, reached through LinkedIn or chamber of commerce networking
- trade associations, online job platforms and before-and-after videos of carpet or window work
When you start your own cleaning business, an ABN on quotes and invoices can help you look contract-ready.
Insurance to consider when starting a cleaning business
Cleaning business owners commonly consider insurance for injury or property damage to others, injury to staff, client property in their care, equipment and vehicles. Cover depends on the policy and insurer you choose. Check the policy wording and its terms and conditions for what is and isn't included.
upcover's guide to insurance for cleaners explains what cleaning businesses commonly arrange first.
The insured on the schedule should match the business a claim is made against. If you trade as a sole trader but the schedule names a company, or the reverse, the insurer may question whether the policy responds, as the entity does not match. This should be the trustee (if you operate through a corporate trust), not the trust, as well as the Pty Ltd and the parent company or operating entity.
If you have multiple entities, always try to list them all and ask your insurance broker or the upcover team to help you with this.
Insurance commonly arranged by cleaning businesses
- Public liability insurance is designed to cover claims if someone is injured or their property is damaged in connection with your business. A client slipping on a freshly mopped floor is one example, subject to the policy terms. Public liability insurance is commonly arranged as public and products liability insurance.
- Products liability insurance is designed to cover claims for injury or damage caused by a product you made, sold or supplied, once it has left your hands.
- Care, custody and control is a benefit commonly included under public liability insurance. It may respond to property damage claims where client property has been left in your care. Whether a policy includes this benefit varies between policy wordings, so always check with your insurance broker or the team at upcover.
- Workers' compensation insurance is designed to cover work-related injury or illness of employees, under the relevant state or territory scheme.
- A business pack bundles several types of cover, such as property and public liability, into one policy. Business pack options may include a portable equipment section, designed to cover equipment you take to client sites against insured loss or damage. Where the equipment is covered, and the limits, vary between policies.
- Commercial motor vehicle insurance is designed to cover a vehicle used for business, such as a van carrying cleaning equipment.
- Personal accident and sickness insurance is designed to provide benefits to help protect your income if injury or illness stops you working, depending on the policy.
business.gov.au lists public liability insurance among insurances "some states and territories need for certain occupations" (business.gov.au). Clients, building managers and contracts may also ask for it. An upcover team member or an insurance broker can talk through what those requirements mean for your business.
What does public liability insurance commonly exclude?
Exclusions commonly include, but are not limited to:
- liability arising from using a registered motor vehicle. Injury to others caused by the vehicle generally sits with third party personal injury insurance, which is "often part of your vehicle registration fee" (business.gov.au). Damage to their property may sit with commercial motor vehicle insurance, depending on the cover arranged.
- dishonest, fraudulent or wilful acts by you (dishonesty by an employee may sit under the crime or fidelity section of a management liability policy, designed to cover losses from employee dishonesty, where you arrange one)
- the cost to redo, correct or improve your own cleaning work
- damage to the exact property being worked on, under a care of property being worked on exclusion
- liabilities you accept only because of a contract, under a contractual liability exclusion
- injury to yourself or your employees, which generally sits with workers' compensation or personal accident insurance
Important: This list is not exhaustive. Exclusions vary between insurers. Always refer to the policy wording and its terms and conditions for the exclusions that apply to you, and if you have questions you should speak to your insurance broker or the upcover team.
How upcover can help
upcover arranges business insurance for cleaning businesses. upcover works with 80+ insurance partners and can arrange quotes from a range of insurers.
- 70,000+ businesses covered
- 4.9/5 customer rating
- Certificate of currency available once your policy is confirmed
If you're working out how to start a cleaning business, you can request a quote for insurance for cleaning businesses online.
Frequently asked questions
Is cleaning a good business to start in Australia?
Cleaning businesses work across private homes, end-of-lease cleans, offices and carpets, and hours may vary by client. The work is physical, and income depends on your rates, client numbers and costs. Demand also varies with the type of cleaning and the area.
Do you need an ABN to be a cleaner?
An ABN is for people running a business or other enterprise, so a cleaner working for themselves commonly registers one (business.gov.au). To register a business name through ASIC Connect, you need an ABN or an ABN reference number (ASIC). An accountant can explain what else applies.
Do you need insurance to start a cleaning business?
Workers' compensation insurance is required where workers fall within the relevant state or territory scheme (Safe Work Australia). Some states and territories also set public liability requirements for certain occupations, per business.gov.au. Clients, contracts and building managers commonly ask for public liability cover too.
How much does it cost to start a cleaning business?
Start-up costs for a cleaning business vary, and business.gov.au says "Setting up a business has many costs and they can vary for each business". Its start-up costs template lists expenses such as supplies and equipment, insurance, business name registration and solicitor fees. Vehicle and marketing costs also commonly apply.
Where can you get help learning how to start a cleaning business?
The business.gov.au starting guide sets out steps from "Before you start" to "Protect your business" (business.gov.au). ABLIS helps work out what licences are needed to start a cleaning business, based on your activities and location (business.gov.au). The Fair Work Ombudsman's Pay and Conditions Tool helps with award pay (Fair Work Ombudsman).
The information in this article is general information only and does not take into account your objectives, financial situation or needs. It is not legal, tax or financial advice. Registration, tax, employment and licensing rules are set by law and explained by the ATO, ASIC, the Fair Work Ombudsman, business.gov.au and state regulators. These rules can change. Before deciding whether a product is right for you, read the policy wording and its terms and conditions. For commercial motor vehicle insurance and personal accident and sickness insurance, also read the Product Disclosure Statement (PDS), Target Market Determination (TMD) and Financial Services Guide (FSG). upcover arranges insurance products with selected insurers and underwriters and does not compare all general insurers or insurance products available in the market.
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