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How to Start a Car Dealership in Australia: Licence Steps

Written by the ExamRoo editorial teamFacts verified on Updated

State guides for New South Wales, Victoria, Queensland, Western Australia, South Australia, Tasmania, Australian Capital Territory and Northern Territory are on the way.

Quick answer: As at 5 November 2026, every state and territory we checked requires a dealer licence if you buy or sell cars as a business. Each state has its own regulator, licence and fees, so the path is the same in outline but the details are not. This guide explains the general path; pick your state for the specifics.[1]
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About this guide series: the goal and the format

  • Goal: help you start a car dealership step by step, using regulator and government pages only, not law firm, insurer or vendor sites. Each fact carries the date we checked it, and each fee links to its page.
  • Format: every state guide covers the licence and who needs one, eligibility, fees and the first-year cost, the steps and timeline, premises, staff and conduct rules, penalties and a checklist.

How to start a car dealership: the general stages

  1. 1Check you need a licence. Every state requires one if you buy or sell cars as a business.
  2. 2Choose a structure: sole trader, partnership or company. In some states this changes the licence or the fee.
  3. 3Get an ABN, and register for GST once your turnover reaches the threshold.
  4. 4Find premises, and check zoning with the council before you sign a lease.
  5. 5Meet your regulator's eligibility tests, which your state guide lists.
  6. 6Apply to your state regulator, pay the fee, and wait for the decision before you trade.
  7. 7Arrange insurance, and search the PPSR before you buy any used car for stock.
  8. 8Set up your records before you trade, and get dealer (trade) plates if you need to drive unregistered cars.[1]

As at 5 November 2026, ABLIS on business.gov.au offers a guided search, where you answer questions about your business, and a custom search by licence name. Use either to find the dealer licence for your state.[1]

How dealer licence fees are usually built

Dealer fees are usually an application or processing fee plus a licence fee. Some states also add a compensation fund contribution, a payment into a fund that pays claims against dealers. Licences run for a fixed term or are ongoing with a yearly fee, and fees are set for a financial year. Your state guide adds these up into a first-year cost.

ABN, GST and insurance

As at 4 November 2026, business.gov.au says to get an ABN for the business first, and to register for GST when your GST turnover is $75,000 or more.[2]

As at 4 November 2026, business.gov.au lists workers compensation (if you have employees) and third-party personal injury cover (if you use motor vehicles) as legally required. It recommends getting professional advice on what else applies to you.[3]

Free practice tests for Australian licences

What changed: 6 November 2026: first published.

Questions people ask

Do I need a licence to sell cars in Australia?

As at 5 November 2026, every state and territory we checked requires a dealer licence if you buy or sell cars as a business. Selling a few cars can still need a licence, so confirm the rule in your state guide before you list the first car.[1]

How do I find the licence I need?

As at 5 November 2026, ABLIS on business.gov.au offers a guided search, where you answer questions about your business, and a custom search by licence name. Use it, then read your state guide for the steps.[1]

Do I need an ABN and GST to run a car dealership?

As at 4 November 2026, business.gov.au says to get an ABN first, and to register for GST once your GST turnover is $75,000 or more.[2]

Do I need insurance to run a car dealership?

As at 4 November 2026, business.gov.au lists workers compensation if you have employees and third-party personal injury cover if you use motor vehicles as legally required. It says some states need public liability cover for certain occupations.[3]

Official links: ABN, GST, insurance, PPSR and licences

Government websites. ExamRoo is not affiliated with any regulator.

Sources

(3)
  1. ABLIS (business.gov.au): Australian Business Licence and Information Service (verified on )
  2. business.gov.au: Register for goods and services tax (GST) (verified on )
  3. business.gov.au: Types of business insurance (verified on )