Starting A Shopify Store: Legal Essentials In Australia

Ecommerce is booming in Australia, and Shopify makes it simple to turn a great idea into a real online store. With templates, apps and built-in payment options, you can be up and running quickly.

But a successful Shopify business needs more than a beautiful storefront. Getting the legal setup right from day one protects your brand, builds customer trust and helps you avoid painful (and costly) surprises later.

In this guide, we’ll walk through how to start a Shopify store in Australia the right way - from registrations and structure to the key laws and contracts you’ll need. Our goal is to give you a clear, practical roadmap so you can launch with confidence and focus on growth.

What Is A Shopify Store And How Does It Work In Australia?

Shopify is an ecommerce platform that lets you create an online store, list products, take payments, manage orders and connect apps without having to build everything from scratch. You pay a monthly subscription and can customise your theme, product pages, checkout and more.

In Australia, Shopify integrates with local payment methods (like Shopify Payments, PayPal, and buy-now-pay-later providers) and shipping tools. It also includes tax settings you control to apply Goods and Services Tax (GST) where required. Importantly, Shopify’s features assist with compliance, but you are responsible for ensuring your pricing, tax settings and invoices are correct under Australian law.

Behind the scenes, running a Shopify store is like running any retail business. You’ll need to choose a structure, register your business, meet tax and consumer law obligations, and put the right contracts and policies in place.

Step-By-Step: How To Start A Shopify Business In Australia

1) Validate Your Idea And Plan Your Operations

Before you pay for a theme or order stock, spend time on research. Ask yourself:

• What are you selling - your own products, handmade items, curated goods, or dropshipped inventory?
• Who is your target customer - Australian buyers, overseas customers, or both?
• How will you price, ship and handle returns?
• What risks could affect you (supply chain, quality control, delivery delays) and how will you manage them?

Documenting your answers in a concise business plan will guide decisions and make the legal setup much easier.

2) Choose A Business Structure

Your structure affects taxes, liability and growth options. The main choices are:

• Sole trader: Simple and low cost to start. You operate as an individual and are personally responsible for debts and liabilities.
• Partnership: Two or more people run the business together. Partners share profits and liability (so have a written agreement if you choose this route).
• Company (Pty Ltd): A separate legal entity with limited liability for owners. Often preferred for scaling, taking on investors or selling the business in future.

Many founders start as a sole trader and move to a company later, while others incorporate upfront for liability protection and credibility. If you plan to incorporate, you can handle your Company Set Up early in the process so your registrations and bank accounts match your company details.

3) Register Your Business Details (ABN, Name, GST)

In Australia, you’ll generally need:

• ABN (Australian Business Number): If you’re running a business (not just a hobby), you will need an ABN for invoicing and to interact with suppliers and the ATO. If you’re unsure, read up on what you need to know about an ABN.
• Business name: If you’re not trading under your personal name or your company’s exact name, register a Business Name so customers can clearly identify you.
• GST: Register for GST if your turnover is (or is likely to be) $75,000+ per year. From there, set up Shopify’s tax settings so GST applies correctly to taxable sales. Remember, the obligation to charge and report GST sits with you, not Shopify.

It’s also a good time to open a business bank account, set up accounting software and decide how you’ll manage bookkeeping and BAS lodgements. For tax specifics, it’s wise to speak with an accountant.

4) Build Your Store And Set Your Policies

With your registrations sorted, create your store. This typically involves:

• Choosing a theme and configuring product pages, variants and images
• Setting up payments, shipping, pickup and delivery options
• Drafting customer-facing policies (returns, shipping, warranties and complaints)
• Connecting basic apps (email marketing, reviews, analytics, accounting)

Your policies are not just user experience - they’re part of your legal compliance under Australian Consumer Law and privacy rules. Put them in place before you launch.

5) Prepare Your Legal Documents

Online shoppers expect clarity. Having tailored website terms, a privacy policy and clear sales terms helps you meet your obligations and reduce disputes. We cover these documents in detail below.

Which Laws Apply To Shopify Stores In Australia?

Running an online store engages several areas of Australian law. Here are the big ones to be aware of from day one.

Australian Consumer Law (ACL)

The ACL sets rules about fair sales practices, consumer guarantees, refunds, warranties and advertising. It applies whether you’re selling from a physical shop or through Shopify.

• Be transparent about pricing, features and delivery timeframes - avoid misleading or deceptive conduct.
• Provide remedies when products are faulty or not as described, consistent with consumer guarantees.
• Use accurate product descriptions and avoid unsubstantiated claims.

Your website content and policies should reflect these obligations, including the process for returns and warranty claims. Where you offer your own warranty, ensure it aligns with an appropriate Warranties Against Defects Policy.

Privacy And Data Protection

If you collect customers’ personal information (names, emails, addresses, order history), you need to handle it responsibly. In Australia, the Privacy Act 1988 and the Australian Privacy Principles (APPs) generally apply to businesses with an annual turnover of more than $3 million, and to some smaller businesses in specific categories (for example, health service providers, credit reporting bodies, or those handling Tax File Numbers).

Even if the APPs don’t strictly apply to your small online shop, it’s considered best practice - and expected by customers - to publish a clear Privacy Policy explaining what you collect, why you collect it, how you use it and how customers can contact you. If you use cookies, analytics or email marketing, explain that too. If you sell internationally or target EU/UK customers, there may be extra rules to consider.

Intellectual Property (IP)

Your brand is a major asset. Protect your name and logo early by registering a trade mark. This helps prevent others from using a confusingly similar brand in Australia. If you’ve developed distinctive packaging, artwork or product content, safeguard those rights too.

On the flip side, only use content (images, fonts, music, product descriptions) you own or have permission to use. Respect suppliers’ IP and avoid copying competitors’ copy or photos. For brand protection, consider applying to Register Your Trade Mark once you’ve settled on a name and logo.

Tax And Invoicing

If you’re registered for GST, charge 10% on taxable sales and issue compliant tax invoices when required. Shopify allows you to configure tax settings and invoice templates, but it does not automatically guarantee you are compliant - you must ensure your invoices meet Australian requirements and that you report GST correctly in your BAS.

Keep accurate records of sales, refunds, discounts, shipping fees, merchant fees and stock. Your accountant can help you set this up properly so reconciliation and reporting are smooth.

Supplier Relationships And Product Compliance

If you import, manufacture or resell, confirm your products meet Australian safety and labelling rules (for example, for cosmetics, children’s products, electronics or food). Where you rely on third parties (manufacturers, wholesalers, dropshippers), have written agreements covering quality, timelines, risk and returns. A well-drafted Supply Agreement helps keep expectations clear and protects your business.

Employment And Contractors

As you grow, you may hire staff or engage contractors for packing, customer support, marketing or development work. Use written agreements, pay correctly under the Fair Work system and set clear boundaries around confidentiality and IP ownership. A tailored Employment Contract ensures rights and responsibilities are documented from the start.

What Legal Documents Will My Shopify Store Need?

Every store is different, but most Australian Shopify businesses benefit from the following core documents. Tailor them to your operations and product range.

• Website Terms And Conditions: Sets the ground rules for using your site, limits your liability and explains how customers should use features like accounts, reviews and discounts. Add these to your footer and checkout. Use a version designed for ecommerce, such as Website Terms and Conditions that fit your store model.
• Terms Of Sale (Online): The contract that applies to each purchase. Covers pricing, order acceptance, shipping, risk of loss, returns, warranties, limitations of liability and governing law. Shopify’s default pages won’t give you the protection of a tailored Terms of Sale.
• Privacy Policy: Explains how you handle personal information, including marketing communications, cookies and third-party apps. Customers expect to see a clear, accessible Privacy Policy on any store that collects data.
• Supplier Agreements: Set expectations around product quality, lead times, pricing, IP, warranties and dispute resolution. If you’re dropshipping, you’ll also want clear terms on returns and who bears the cost of defects.
• Contractor Or Employment Agreements: Cover pay, duties, confidentiality, IP ownership and termination. Put it in writing, even for short-term help.
• Non‑Disclosure Agreement (NDA): Useful when sharing product ideas, brand designs or marketing plans with freelancers, agencies or potential partners.
• Trade Mark Registrations: Not a “document” in the same sense, but registering your brand is a key legal step that materially strengthens your position if copied.

You don’t need every document on day one, but you should prioritise customer-facing terms and privacy, then shore up supplier and staffing agreements as you scale.

Can I Sell Any Product On Shopify?

Shopify allows a broad range of products, but there are limits under both platform rules and Australian law. Before you commit to a product category, check the following:

• Prohibited items: Shopify bans certain goods (e.g. illegal products, weapons, counterfeit items). Review platform terms for your category.
• Regulated products: Some items are legal but regulated in Australia, such as cosmetics, therapeutic goods, food, alcohol, vaping products and children’s items. You may need extra approvals, labelling or age verification.
• Safety compliance: Imported goods must meet Australian standards. If you sell electronics, toys or baby products, make sure your supplier provides the right certifications and testing evidence.
• IP risks: Avoid infringing other brands’ trade marks or copyrights. Don’t use logos, images or designs without permission. If you’re building a brand, consider early trade mark filing to lock in your rights.

If you’re unsure whether your idea is permitted, it’s best to check before investing in inventory or launching ads.

Buying Or Selling A Shopify Store: Legal Checks

There’s a growing market for turnkey Shopify businesses in Australia. Whether you’re buying or selling, treat it like any other business acquisition - with careful due diligence and clear contracts.

• Due diligence: Review financials, traffic sources, marketing assets, supplier contracts, customer lists, IP ownership (including trade marks and creative assets) and compliance history.
• Sale contract: Document exactly what’s being sold (domain, theme files, product IP, inventory, email lists, social accounts), any liabilities, restraints on the seller, and transition assistance. A tailored Business Sale Agreement helps avoid disputes.
• Transfer logistics: Plan for domain transfer, Shopify account handover, app subscriptions, payment gateway changes and notifying customers where appropriate (particularly for privacy reasons if you’re transferring personal data).

If the store relies heavily on a single supplier or influencer channel, factor that risk into price and protections (for example, warranties and earn-outs tied to post-sale performance).

Common Pitfalls For New Shopify Stores (And How To Avoid Them)

Launching fast is great - but skipping the basics can create headaches. Watch out for:

• Unclear or copied policies: Templates found online may not reflect the ACL or your operations. Tailor your Website Terms and Conditions and Terms of Sale to your actual processes.
• Wrong tax settings: Double-check GST settings, invoice details and product taxability. Don’t assume Shopify’s defaults match Australian rules.
• Weak supplier arrangements: Without written terms, you bear more risk if deliveries are late or quality varies.
• Brand clashes: Launching without checking trade mark availability can lead to rebrand costs later.
• Privacy gaps: If you’re collecting emails, using cookies or running remarketing ads, publish a clear Privacy Policy and honour unsubscribe and opt-out requests.
• Poor record-keeping: Keep organised records for inventory, cost of goods sold, discounts and refunds to simplify your BAS and tax returns.

The fix is simple: set your foundations early, document how you trade, and stay consistent with your policies in practice.

Key Takeaways

• Starting a Shopify store in Australia involves more than design and products - set up your structure, registrations and legal documents before launch.
• Register an ABN, an appropriate business name and GST if your turnover is (or will be) $75,000+; you control Shopify’s tax settings and remain responsible for compliant invoicing and reporting.
• Comply with the Australian Consumer Law, be transparent in your advertising and ensure your returns and warranty processes match your legal obligations.
• Publish clear Website Terms and Conditions, a Privacy Policy and Terms of Sale to set expectations, reduce disputes and build trust with customers.
• Protect your brand with trade marks, use written Supply Agreements, and document employment or contractor relationships as you scale.
• If you buy or sell a Shopify store, conduct proper due diligence and use a Business Sale Agreement to capture exactly what’s included and how the handover will work.

If you would like a consultation on starting a Shopify store in Australia or checking your ecommerce compliance, you can reach us at 1800 730 617 or team@sprintlaw.com.au for a free, no-obligations chat.