Opening a barbershop in Australia can be an excellent business opportunity. The men's grooming market is constantly growing, and more and more men are looking for quality services and professional experience in modern barbershops.
In this complete guide, we explain step by step everything you need to know to open your barbershop in Australia: from legal requirements and necessary permits, to initial investment, strategic location, equipment, and management tools that will help you succeed from day one.
8 Steps to Open Your Barbershop in Australia
Research and Business Plan
Before opening your barbershop in Australia, it's essential to conduct thorough market research and create a solid business plan. This step is crucial to understand the market, identify opportunities, and minimize risks.
Key elements to research:
- Competition analysis: Identify how many barbershops are in your area, what services they offer, their prices, and what differentiates them. Use tools like Google Maps, Yelp Australia, and local business directories to analyze local competition.
- Target audience: Define who will be your ideal client: age, socioeconomic level, preferences, and consumption habits. Use Australian Bureau of Statistics (ABS) data to understand the demographics of your area.
- Average market prices: Research how much other barbershops charge for similar services in your area. Typical prices in Australia range from $25-$60 AUD for a haircut, $40-$90 for haircut and beard trim.
- Service demand: Evaluate if there's sufficient demand in the location you're considering. Consider factors like population density, demographic growth, and market trends in cities like Sydney, Melbourne, Brisbane, Perth, or Adelaide.
- Peak hours: Identify when there are more potential clients available. Observe traffic patterns and consider office and nearby university schedules.
Legal Requirements and Permits in Australia
To legally operate a barbershop in Australia, you need to comply with the following requirements. Each has specific processes and processing times that you should consider. Requirements may vary depending on the state or territory where you plan to open your business, as well as the local council.
ABN Registration (Australian Business Number)
An ABN is a unique 11-digit number that identifies your business to the government and other businesses. It's free to register and required for most businesses.
How to register: Online through the Australian Business Register (ABR)
Estimated time: Immediate (online)
Cost: Free
Apply for ABN →ATO Registration (Australian Taxation Office)
You must register with the ATO for tax purposes. This includes:
- Tax File Number (TFN): If you don't already have one
- GST Registration: If your annual turnover exceeds $75,000 AUD (mandatory) or you want to register voluntarily
- PAYG Withholding: If you hire employees
How to register: Online through ATO Business Portal or when you register for ABN
Estimated time: Immediate to 1 week
Cost: Free
ATO - Starting a Business →GST Registration
You must register for GST if your annual turnover exceeds $75,000 AUD. You can also register voluntarily if your turnover is below this threshold. GST rate in Australia is 10%.
When to register: Within 21 days of exceeding the $75,000 threshold, or voluntarily at any time
How to register: Through ATO Business Portal or when registering for ABN
Estimated time: Immediate to 1 week
Cost: Free (but you'll need to charge GST and submit BAS returns)
⚠️ Important: Once registered, you must charge 10% GST on all taxable supplies and submit Business Activity Statements (BAS) quarterly or monthly.
State/Territory Barber License
Barber licensing requirements vary by state and territory. Most states require barbers to be licensed or hold a Certificate III in Barbering. Here's an overview:
Note: Contact your state or territory licensing authority for specific requirements. Certificate III in Barbering (SHB30516) is the standard qualification across Australia.
Local Council Business License
Most local councils require businesses to obtain a business license or registration. Requirements vary by council area.
Where to apply: Your local council office
Estimated time: 1-4 weeks (varies by council)
Approximate cost: $50-$500 AUD (varies significantly by council)
Important note: Contact your local council early to understand specific requirements. Some councils may require health inspections or zoning approval before issuing a license.
Health and Safety Compliance
You must comply with health and safety regulations. This includes:
- Compliance with state health regulations
- Proper sanitation and hygiene practices
- Safe handling and storage of chemicals and products
- Workplace health and safety standards (Work Health and Safety Act)
- Health inspections (may be required by local council or state health department)
Cost: Free (but you must invest in proper equipment, sanitation supplies, and training)
Insurance Requirements
You need appropriate insurance coverage:
- Public Liability Insurance: Essential for businesses that interact with the public. Covers claims for injury or property damage. Typically $5-20 million coverage recommended.
- Workers' Compensation Insurance: Required in all states if you employ staff. Coverage and requirements vary by state.
- Contents Insurance: To protect your equipment, furniture, and stock.
- Commercial Property Insurance: If you own the property (or your lease requires it).
- Business Interruption Insurance: Optional but recommended to cover loss of income.
Approximate cost: $500-$2,500 AUD per year (varies by coverage, location, and business size)
Important: Shop around for insurance quotes. Compare coverage and prices from multiple providers like AAMI, GIO, or local brokers.
Estimated Initial Investment
The initial investment to open a barbershop in Australia can vary significantly depending on size, location, and equipment level. Here's an approximate breakdown in Australian dollars:
Detailed Breakdown by Category
Rent
Rent varies enormously depending on location. In Sydney, Melbourne, and other major cities, costs are significantly higher than in smaller cities.
- Sydney (CBD): $4,000 - $10,000 AUD/month
- Sydney (Suburbs): $2,000 - $5,000 AUD/month
- Melbourne (CBD): $3,000 - $8,000 AUD/month
- Melbourne (Suburbs): $1,500 - $4,000 AUD/month
- Brisbane, Perth, Adelaide: $1,200 - $3,500 AUD/month
- Smaller cities: $800 - $2,500 AUD/month
Consider: Security deposit (typically 3-6 months), first month's rent, and possible agent fees.
Professional Equipment
Equipment is an important investment. You can find quality equipment at specialized distributors, online retailers, or buy used to save.
- Barber chairs: $500 - $2,500 AUD each
- Mirrors: $200 - $1,500 AUD each
- Professional scissors: $50 - $300 AUD each
- Clippers: $100 - $450 AUD each
- Razors and tools: $200 - $700 AUD
- Hair dryers: $80 - $350 AUD each
- Lighting: $300 - $1,500 AUD
Purchase options:
Working Capital
Money needed to cover operating expenses during the first months while you build your client base. Includes:
- Payroll (if you hire employees)
- Monthly rent
- Utilities (electricity, water, internet, council rates)
- Ongoing marketing
- Inventory replenishment
- Unexpected expenses
Recommendation: Keep enough capital to cover 3-6 months of operation without significant income.
Financing Options
If you don't have all the necessary capital, consider these options:
- Business loans: From major Australian banks (CBA, ANZ, Westpac, NAB)
- Government grants: Various federal and state government grants for small businesses
- Equipment leasing: To finance specific equipment
- Investors or partners: To share risk and capital
Note: These are estimated ranges. A small barbershop with basic equipment can start with around $25,000 AUD, while a larger, well-equipped barbershop in a premium location (especially Sydney or Melbourne) may require up to $100,000 AUD or more. Prices can vary significantly depending on geographic location, equipment quality, and premises size.
Strategic Location
Location is one of the most important factors for your barbershop's success. A good location can mean the difference between success and failure. In Australia, there are multiple platforms and resources to find the perfect location.
Where to search for commercial properties:
realcommercial.com.au
The largest commercial property platform in Australia. Excellent for finding commercial properties across all states and territories.
Search on Real Commercial →Domain Commercial
Another major property platform with comprehensive commercial property listings across Australia.
Search on Domain Commercial →Gumtree
Popular local platform for finding commercial properties, especially in major cities. May have direct owner listings.
Search on Gumtree →Local Real Estate Agents
Don't overlook local real estate agents. They often have properties that aren't listed online and can provide valuable local market knowledge.
Key Australian Cities for Barbershops:
Sydney
Largest market but highest rents. Areas like Surry Hills, Newtown, and Bondi are popular.
Melbourne
Vibrant city with strong local economy. Fitzroy, Brunswick, and CBD are good locations.
Brisbane
Growing market with competitive rents. Fortitude Valley, New Farm, and CBD are popular.
Perth
Stable market with growing population. Northbridge, Subiaco, and CBD are good options.
Adelaide
Affordable market with strong local economy. Rundle Street, North Adelaide, and CBD are popular.
Gold Coast
Tourist destination with high foot traffic. Surfers Paradise and Broadbeach are good locations.
Equipment and Furniture
Quality equipment is essential for providing excellent service. Invest in professional tools that will last and make your barbershop stand out.
Note: For a barbershop with 2-3 barbers, basic equipment can cost between $8,000 and $30,000 AUD, depending on whether you choose economical or professional options.
Staff Hiring
Hiring experienced barbers with Certificate III in Barbering (SHB30516) is essential for your barbershop's success. A good team can make your business stand out and generate loyal clients.
Employment obligations in Australia:
- Workers' Compensation: Required in all states if you employ staff
- Fair Work Act: Comply with national employment standards (minimum wage, hours, leave, etc.)
- Superannuation: Contribute 11% (as of 2024) of employee wages to superannuation funds
- Payroll Tax: May apply depending on your state and payroll amount
- Record Keeping: Maintain proper employment records
Where to find barbers:
Indeed Australia
Search barbers on Indeed →Local TAFE colleges and barbering schools
Contact local TAFE colleges that offer Certificate III in Barbering for recent graduates.
Management System and Technology
A good management system is essential for organizing appointments, managing clients, and running your barbershop efficiently.
Marketing and Promotion
Effective marketing is crucial to attract clients and build your barbershop's reputation. In today's digital age, a strong online presence combined with local marketing strategies is essential.
Digital marketing strategies:
- Website: Create a professional website with your services, prices, location, and online booking
- Google My Business: Register and optimize your profile to appear in local searches
- Social media: Create profiles on Instagram and Facebook. Post regularly with photos of your work
- Google Ads: Consider running Google Ads targeted to your local area
- Facebook Ads: Target potential clients in your area with Facebook advertising
Tips and Best Practices for Success
Frequently Asked Questions
Do I need a license to open a barbershop in Australia?
Barber licensing requirements vary by state. Most states require barbers to hold Certificate III in Barbering (SHB30516) or equivalent. You also need to register your business with ATO, obtain a local council business license, and comply with health and safety regulations.
How much does it cost to open a barbershop in Australia?
The initial investment can range from $25,000 to $100,000 AUD depending on size, location, and equipment quality. A small barbershop with basic equipment can start around $25,000, while a larger, premium barbershop in Sydney or Melbourne may require $100,000 or more.
Do I need to register for GST?
You must register for GST if your annual turnover exceeds $75,000 AUD. You can also register voluntarily if your turnover is below this threshold. GST rate in Australia is 10%.
What insurance do I need?
You need Public Liability Insurance (essential for businesses that interact with the public) and Workers' Compensation Insurance (required in all states if you employ staff). You may also want Contents Insurance and Business Interruption Insurance.