Registering a Fitness Business in Australia: Licences, Permits and Tax Obligations

Starting a fitness business — whether a personal training studio, group fitness gym, Pilates studio, or health club — involves more compliance groundwork than most new operators expect. Beyond finding your space, buying equipment, and building a client base, there is a series of business registration steps, permits, licences, and tax obligations that must be in place before you open your doors.

Getting this right at the beginning avoids costly remediation later. This guide covers the core registration, permit, and tax obligations for fitness businesses in Australia: what you need, when you need it, and how to stay compliant ongoing.

For a broader overview of what it takes to set up a gym from scratch including WHS, employment, and insurance obligations, see our guide on starting a gym in Australia.

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Step 1: Choose Your Business Structure

The first compliance decision when starting a fitness business is your legal structure. This affects your tax obligations, personal liability exposure, and administrative requirements.

Sole Trader

Operating as a sole trader means the business is legally you — there is no separate legal entity. You report business income on your personal tax return. It is the simplest structure to set up, but you have unlimited personal liability for business debts and legal claims.

Register as a sole trader: Apply for an Australian Business Number (ABN) and register any business name (other than your own full name) with the Australian Securities and Investments Commission (ASIC).

Partnership

A partnership involves two or more people carrying on a business together. The partnership is not a separate legal entity — each partner is personally liable for the debts of the business. Partnership income flows through to each partner's personal tax return.

Register a partnership: Apply for a partnership ABN, register any business name with ASIC, and enter into a written partnership agreement.

Company (Pty Ltd)

A proprietary limited company is a separate legal entity. This limits the personal liability of directors and shareholders (in most circumstances) and may have tax advantages at scale. However, it comes with greater administrative obligations — ASIC annual review fees, company tax return, and director duties under the Corporations Act 2001.

Register a company: Apply through ASIC. This creates an Australian Company Number (ACN). Then apply for an ABN for the company.

Trust

Some fitness businesses operate through a trust structure — a discretionary (family) trust is common where the owner wants flexibility in distributing income to family members. Trusts are administratively complex and require a qualified accountant to set up and manage correctly.

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Step 2: Australian Business Number (ABN)

Every business operating in Australia needs an ABN. Without one, other businesses are required to withhold 47% from payments they make to you (top rate withholding).

Apply for an ABN: Register through the Australian Business Register (ABR) at abr.gov.au. ABN applications are free and typically granted within minutes for straightforward applications.

You will need your ABN to:

• Quote to clients and on invoices
• Register for GST
• Register your business name
• Open a business bank account

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Step 3: Goods and Services Tax (GST)

You are required to register for GST if your business turnover is $75,000 or more per year (or $150,000 for non-profit organisations). Even if your turnover is below this threshold, you can choose to register voluntarily.

For most personal training studios and gyms generating more than a modest income, registration for GST is mandatory.

GST and Fitness Services

Most fitness services attract GST. If you provide fitness instruction, personal training, gym memberships, or health club access, these services are generally taxable supplies and 10% GST applies.

However, some health services may be GST-free if delivered by a registered health professional in specified circumstances. For example, services provided by an accredited exercise physiologist to treat a clinical condition may be GST-free. This is a nuanced area — if you are an exercise physiologist, confirm with your accountant whether your services qualify for GST-free treatment.

Registering for GST

Register for GST through the ATO's Online Services for Business portal or through your tax agent. Once registered, you must:

• Charge 10% GST on taxable supplies
• Claim GST credits (input tax credits) on business purchases
• Lodge Business Activity Statements (BAS) quarterly (or monthly if your turnover exceeds $20 million)

BAS lodgement deadlines are typically:

• Q1 (Jul–Sep): 28 October
• Q2 (Oct–Dec): 28 February
• Q3 (Jan–Mar): 28 April
• Q4 (Apr–Jun): 28 July

Late BAS lodgement attracts a Failure to Lodge (FTL) penalty — currently $313 per 28-day period (or part thereof) for a small entity. See our detailed guide on BAS lodgement deadlines.

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Step 4: Business Name Registration

If you trade under any name other than your own legal name (for a sole trader) or the company's registered name (for a company), you must register your business name with ASIC.

Business name registration is done through the Business Registration Service at businessregistrations.gov.au. The fee is currently:

• 1 year: $42
• 3 years: $98

Your business name must be renewed before it expires — ASIC will send a reminder, but the obligation to renew on time is yours. An expired business name means you are trading without registration, which is an offence under the ASIC Act.

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Step 5: Local Council Permits and Planning Approvals

Before operating a gym, fitness studio, or health club in a commercial premises, you need to ensure the premises is approved for the use you intend. This involves:

Development Approval / Change of Use

If you are leasing a premises that was previously used for a different purpose (retail, office, warehouse), you may need a development approval from your local council to change the use to a gym or fitness studio.

Gyms and fitness studios are typically classified as leisure and recreation facilities or health services facilities in planning schemes. Some planning zones permit this use without specific approval; others require a development application.

Do this before you sign a lease — discovering after you have signed that the premises cannot be approved for gym use is an expensive mistake.

Key considerations:

• Car parking requirements — gyms typically require a specified number of spaces per 100 sqm of floor area
• Change rooms and amenities
• Acoustic requirements — especially for group fitness studios with music, weights, and impact activities
• Disability access compliance under the Disability Discrimination Act 1992 and the National Construction Code

Building Permits

Any fit-out work, structural changes, or new construction at your premises may require a building permit from your local council or a registered private building surveyor. This includes:

• Partition walls
• New plumbing (showers, bathrooms)
• Electrical fit-out changes
• Mezzanine levels or structural additions

Carrying out building work without a permit is an offence and can result in orders to rectify or demolish the unpermitted work.

Food Business Registration

If you intend to sell food or beverages at your gym, you will also need to register as a food business with your local council. See our guide on food safety compliance for sports clubs and fitness facilities for details.

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Step 6: Music Licensing — APRA AMCOS and PPCA

This is one of the most commonly overlooked compliance obligations for fitness businesses. If you play music at your gym or fitness studio — in group fitness classes, as background music, through a sound system — you are most likely required to hold licences from both APRA AMCOS and PPCA.

Why Music Licensing Applies

When music is played in a commercial setting, copyright applies in two layers:

1. Composition copyright — held by the songwriter and publisher, administered by APRA AMCOS
2. Sound recording copyright — held by the record label or recording artist, administered by PPCA

Playing music in your gym without the appropriate licence means you are infringing these copyrights, regardless of whether you purchased the music or use a streaming service.

Note: standard consumer streaming services (Spotify, Apple Music) do not include a licence for public or commercial performance. You need a separate commercial licence.

APRA AMCOS Licence

APRA AMCOS (Australasian Performing Right Association and Australasian Mechanical Copyright Owners Society) issues the Fitness and Exercise licence specifically for gyms, fitness studios, and health clubs.

The licence fee is calculated based on:

• The number of rooms or studios where music is played
• Whether music is used in group fitness classes (attracts a higher rate)
• The total floor area

Licences are renewed annually. Current APRA AMCOS fitness licence fees are published on the APRA AMCOS website.

PPCA Licence

PPCA (Phonographic Performance Company of Australia) issues licences for the broadcast and public performance of sound recordings. Most gyms playing commercially released music also need a PPCA licence.

PPCA offers an Exercise Facility licence for gyms and fitness centres, priced based on the size of the facility.

Music Licensing Checklist

• APRA AMCOS fitness/exercise licence held and current
• PPCA exercise facility licence held and current
• Licences renewed annually
• Music usage consistent with the scope of the licences held

Failure to hold licences can result in infringement notices and back-payment demands from APRA AMCOS and PPCA, which can be substantial if you have been operating unlicenced for years.

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Step 7: Ongoing Tax Obligations

Once your business is registered and operating, your ongoing tax compliance obligations include:

Income Tax

• Sole traders and partnerships: Business income is reported in the individual/partnership tax return. The standard individual income tax rates apply.
• Companies: Pay corporate tax — currently 25% for base rate entities (businesses with aggregated turnover below $50 million where 80% or less of income is passive)
• Tax returns are due by 31 October for the previous financial year (or later if lodged through a tax agent)

PAYG Withholding

If you employ staff, you must register for PAYG withholding and withhold tax from employees' wages. Amounts withheld are reported and remitted to the ATO either monthly or quarterly depending on your withholding amount. This is reported through Single Touch Payroll (STP).

Superannuation Guarantee

If you have employees, you are required to pay the Superannuation Guarantee at the current rate (12% of ordinary time earnings from 1 July 2025). Payments are due quarterly at minimum until the payday super reforms take effect from 1 July 2026, when super must be paid on the same day as wages.

Fringe Benefits Tax (FBT)

If you provide non-cash benefits to employees (for example, gym memberships, company vehicles, entertainment), you may be liable for Fringe Benefits Tax. FBT is assessed on the taxable value of the benefits and is separate from income tax.

ATO Reporting Compliance

• Ensure your payroll software is STP Phase 2 compliant
• Lodge BAS by the due dates
• Keep business records for 5 years

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Summary: Key Registrations and Licences for a Fitness Business

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How Reguladar Helps

Starting and running a fitness business involves compliance obligations across tax, licensing, employment, WHS, and local council regulations — with different renewal and lodgement dates spread across the calendar year.

Reguladar's compliance dashboard gives fitness business operators:

• BAS lodgement deadline reminders so you never miss a quarterly filing
• Licence renewal tracking for APRA AMCOS, PPCA, and business name registration
• Employment law and super compliance checklists and deadline tracking
• Personalised obligation view based on your industry, size, and structure

Run a free compliance check at Reguladar and get a complete picture of every registration, licence, and tax obligation your fitness business faces — with your next key deadline clearly identified.

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This article is general information only and does not constitute legal, tax, or financial advice. Licensing and permit requirements vary by state, territory, and local council — consult a qualified accountant, lawyer, or business adviser for advice specific to your circumstances.