Contents
Starting a cleaning business in Australia is an exciting and practical way to become your own boss, tap into a growing industry, and build a lasting enterprise. Whether your dream is to operate a home-based solo operation or scale up to a professional cleaning company with multiple staff, there’s real opportunity for reliable income and growth. But before you roll up your sleeves, invest in supplies, or take on your first client, it’s vital to ensure your business is set up the right way – legally and structurally.
If you’re wondering how to register a cleaning business, what unique legal requirements apply, or what you need before opening your doors, keep reading. We’ll guide you through every step of transforming your cleaning business start up idea into a compliant, protected and sustainable success.
What Is a Cleaning Business?
A cleaning business in Australia provides professional cleaning services to residential, commercial, or industrial clients. This could include regular residential housekeeping, end-of-lease cleaning, office cleaning, carpet or window cleaning, and even specialty areas like high-rise window cleaning or medical-grade sanitisation. Services are delivered either on-site at the client’s location or, in some cases, within dedicated premises.
The cleaning industry in Australia has seen consistent demand as households and companies increasingly outsource cleaning for convenience and hygiene. It’s a relatively easy sector to enter with low upfront costs, but to stand out and thrive, your cleaning business will need a robust setup – including all the necessary legal foundations.
How Profitable Is a Cleaning Business in Australia?
You might be wondering, is a cleaning business profitable in Australia? Many cleaning companies make a modest but reliable income, with residential and commercial cleaning rates usually charged by the hour, by the job, or under contract. Profit margins can be healthy but will depend on location, scale of operations, type of cleaning service, your reputation, and how efficiently you manage costs.
While some solo operators start off earning $30–$50 per hour, scaling up to a team and servicing commercial contracts can dramatically increase revenue. Just remember, profitability also hinges on getting your legal, administrative, and compliance matters right from the outset.
How Do I Start a Cleaning Business From Scratch?
Starting a cleaning business from scratch in Australia doesn’t have to be overwhelming. Here’s a cleaning business checklist to guide your early planning and ensure no key steps are missed:
- Decide on your cleaning business model (home/residential, commercial/office, niche/specialty, etc.)
- Research your local market and identify target clients
- Create your business plan and set out budgets, services, and pricing structure
- Choose and register your business structure (sole trader, partnership, company)
- Register your business name and obtain an ABN
- Check for local council and state licensing requirements
- Set up a professional contract for customer engagements
- Organise insurance (e.g., public liability, workers’ compensation)
- Set up a business bank account and accounting system
- Arrange cleaning equipment and supplies
- Develop your branding (name, logo, website) and consider registering a trade mark
- Draft employment agreements and workplace policies if hiring staff
- Establish your marketing plan
Having a detailed starting a cleaning business checklist helps you manage risk, target your efforts, and avoid costly mistakes. Let’s break down several key steps and legal essentials.
What Do You Need to Start a Cleaning Business?
There’s more to starting a cleaning business in Australia than simply sourcing supplies and getting your first customer. Navigating the legal and compliance steps at the outset will save you time, money, and potential headaches down the track. Here’s what you need:
- Business Structure and Registration: Decide if you’ll operate as a sole trader or company, register your business name, and apply for an Australian Business Number (ABN).
- Licences and Permits: Check your state or territory’s specific requirements. In NSW, for example, there are no explicit “cleaning licenses,” but you may need local council approval if working from home or for waste disposal.
- Insurance: At a minimum, you’ll need public liability insurance to protect against property damage or injury. If hiring, workers’ compensation is a must.
- Essential Contracts: Professional service agreements/terms and conditions help clarify your scope of work, payment terms, cancellations, and liability. This is crucial for cleaning businesses where disputes can arise over quality or missed services.
- Employment Law Compliance: If you plan to employ staff, you must comply with modern award rates, National Employment Standards, and workplace safety legislation.
- Tax and Ongoing Compliance: Register for GST if you expect turnover above $75,000, and keep good accounting records.
Every cleaning business will have unique elements, but these steps are common to most. If you’re unsure, speaking with a contract lawyer can ensure everything is properly set up.
Step-By-Step Guide to Register a Cleaning Business in Australia
1. Research and Create a Business Plan
Invest time researching your ideal client – residential homeowners, tenants, real estate agents, strata managers, or business owners. Analyse local competition, expected prices, the services in demand, and your start-up costs. Document your vision, target market, services offered, pricing, and pathway to growth.
A solid business plan not only guides your growth but is helpful if you apply for finance or bring on partners.
2. Choose a Legal Structure
How you legally structure your business affects your tax obligations, liability, and how you can grow. Your main options include:
- Sole Trader: Easy to set up, lower cost, and ideal for a one-person start up. However, you are personally liable for all business debts and risks.
- Partnership: If starting with another person, you can share responsibilities and profits. However, partners also share liability.
- Company: A separate legal entity, offering limited liability, asset protection, and more credibility with larger clients. Companies have additional setup and reporting obligations.
Read more about business vs hobby, business structure differences, and consult a legal expert to determine what’s best for you.
3. Register Your Business Name and Obtain an ABN
You must have an Australian Business Number (ABN) to operate legally, invoice clients, and claim GST credits. You should also register your business name to protect your brand and ensure your name isn’t already taken. If you trade through a company, you’ll also need to register the company with ASIC.
You might be asking, Do I need an ABN to be a cleaner? The answer is yes. You need an ABN to operate any business in Australia, including a cleaning service, whether you are a sole trader or a company.
4. Secure Relevant Permits and Check Cleaning Licence Requirements
While there is generally no specific “cleaning license” required in most Australian states, you may need:
- Council permits if running from home or leasing commercial premises
- Special permits for waste disposal, chemical use, or working in hospitals/schools
- Evidence of formal training for high-risk work (e.g., high-rise window cleaning)
Check your state’s Small Business and local council rules. If you want to know about cleaning licence NSW or in other states, it’s vital you look up local government websites or consult a professional.
5. Set Up Your Operations
Arrange suitable cleaning equipment, uniforms, and reliable transport. You’ll also want to set up a business bank account, basic record-keeping or accounting software, and business insurance.
If you plan to grow your cleaning company business and employ staff, consider policies for rostering, health and safety, and payroll from day one.
6. Protect Your Brand and Intellectual Property
As you build your reputation and client base, a unique name and logo are key business assets. Consider registering a trade mark for your brand to safeguard it from copycats and competitors. This is particularly important as you scale and want to be known for your quality and professionalism.
7. Draft Essential Legal Documents
Even if you’re starting small, operating without professionally-drafted legal documents is risky. The right contracts and policies help manage client expectations, set payment terms, clarify liability, and address cancellations or complaints. More on this below.
8. Launch and Grow Your Cleaning Business
Once compliant and set up, you can start marketing your services, responding to leads, and booking your first jobs. Don’t forget to refresh your legal documents and policies as you grow – and check in with a legal professional whenever you scale up, expand, or hire new staff.
Legal Requirements for Cleaning Businesses in Australia
Every cleaning business must comply with a range of Australian laws. Here’s a closer look at the most important ones:
Legal Registration and ABN
Every business in Australia, including cleaning services, must register for an ABN and correctly register their business name or company with the Australian Securities & Investments Commission (ASIC), if required. Read our quick guide to registering a business for the essential steps.
Permits and State-Based Requirements
You may require additional permits to operate, especially if:
- Providing specialist cleaning (hazardous sites, chemicals, medical)
- Operating from home or certain premises
- Disposing of waste (liquid, chemical, sharps, etc.)
Contact your local council and state Small Business Commission to confirm what you need for your exact cleaning services.
Australian Consumer Law (ACL)
The Australian Consumer Law (ACL) sets strict standards for all Australian businesses serving consumers. You must:
- Provide services with due care and skill
- Ensure services are fit for purpose as claimed
- Have clear refund and complaints policies
- Avoid misleading or deceptive advertising
These rules protect customers, but also your business, if you communicate what’s included and your legal terms clearly.
Employment Law
Hiring staff brings obligations around award pay rates, work health and safety, working hours, and employment contracts. Whether your workers are employees or contractors, you must follow National Employment Standards.
Privacy and Data Protection
If you collect personal information about clients (names, addresses, payment details), you may need a Privacy Policy and must comply with the Australian Privacy Principles. This is especially important if you run a website or use digital booking forms.
Intellectual Property
Protecting your brand by registering a trade mark and copyrighting your original marketing material (like brochures, website) ensures others can’t use your business name or logo.
Tax & Financial Compliance
Register for GST if you expect to earn more than $75,000 per year. Keep thorough records of income and expenses, and comply with Australian tax reporting obligations.
What Legal Documents Do I Need for a Cleaning Business?
Having the right documents in place is essential for risk management and smooth client relationships. Key legal documents for cleaning businesses in Australia include:
- Client Agreement or Cleaning Service Terms & Conditions: Sets out your services, inclusions, pricing, payment terms, and policies for cancellations, damages, and liability. See our Service Agreement packages for tailored options.
- Privacy Policy: Explains how you handle client data, as required under privacy law. Learn more about Privacy Policies.
- Employment Agreement: Sets the ground rules for staff, covering pay, role expectations, leave, and disciplinary procedures.
- Workplace Policies: For safety (especially around hazardous chemicals/equipment), bullying and harassment, complaint procedures, and more.
- Public Liability Insurance Policy: While technically not a legal contract, proof of insurance is vital to your risk management and often a client requirement.
- Subcontractor Agreement: If you outsource jobs, a tailored subcontractor agreement ensures expectations and liability are clear.
- Non-Disclosure Agreement (NDA): If you’re discussing business plans or client data with third parties, use an NDA to protect your confidential information.
Not sure which documents apply to your business? A legal health check can identify any gaps before they become costly issues.
Do I Need a Cleaning Licence in Australia?
In most parts of Australia, there is no specific “cleaning licence” just for offering general cleaning services. However, you may require:
- Permits or registrations for specialist cleaning (hazmat, medical/crime scene, high-rise)
- Induction training or security clearances for certain government or commercial sites
- Local council approval (if operating from home or on certain premises)
Laws may vary by state, especially if you’re starting a cleaning business in NSW or QLD. If in doubt, check with local authorities or get legal help for your region.
Starting a Cleaning Franchise or Buying an Existing Cleaning Business
If you’re considering starting a cleaning business in Australia by buying a franchise or an established company, the legal steps and due diligence will be slightly different.
- Franchising provides support, systems, and branding, but you’ll need to review the franchise agreement and comply with the Franchising Code of Conduct.
- Buying an existing cleaning business means carefully reviewing the business sale agreement, transferring any existing licences or permits, and checking for debts, contracts, and existing client obligations.
In both scenarios, it’s wise to get expert legal advice to avoid surprises and ensure the contract terms are fair.
Key Takeaways
- Starting a cleaning business in Australia is achievable but requires methodical legal and practical planning from day one.
- You must register your cleaning business with an ABN and, if using a brand name, register the name with ASIC.
- While there is usually no specific cleaning licence required for general cleaning, state and council permits may still be needed, especially for specialist work or waste handling.
- Choosing the right business structure (sole trader, partnership, or company) affects your tax and liability, so make this choice thoughtfully.
- Comply with all relevant Australian Consumer Law, employment laws, privacy regulations, and tax requirements.
- Essential legal documents like client service contracts, employment agreements, NDAs, and privacy policies will protect your interests and set clear client and staff expectations.
- Ongoing compliance, good recordkeeping, and updating contracts as you grow are vital for long-term success.
- Getting legal advice early helps you avoid costly errors and sets you up for sustainable growth.
If you’d like a consultation on starting a cleaning business in Australia, you can reach us at 1800 730 617 or team@sprintlaw.com.au for a free, no-obligations chat.
Meet Our Lawyers for Business Set Up
Get in touch now!
We'll get back to you within 1 business day.
Book in a free consultation with us to discuss your legal needs.