How to start a mobile mechanic business in Australia

Most of what it takes to start a mobile mechanic business is done in the first three months, and the order matters. You need an ABN before you can register for GST, a licence (in some states) before you can legally take paid repair work, and insurance before the first customer’s car is on your jack. Below is the order that avoids rework, then the detail behind each step.

The first 90 days, in order

1. Week 1: check licensing for your state. In NSW, WA and the ACT a mobile repair business needs a licence (details below). Everywhere else, search ABLIS for “motor vehicle repair” and your state. Applications need documents (WA wants police checks), so start this first.
2. Week 1: apply for an ABN through the Australian Business Register.
3. Week 1 to 2: register a business name with ASIC, unless you trade under your own first name and surname only.
4. Week 2: decide on GST. Register now if you expect $75,000 or more in your first year.
5. Week 2 to 3: open a separate business bank account so every dollar in and out is easy to find at tax time.
6. Week 3: get insurance quotes from a broker (list of questions below). Don’t take a paid job until cover starts.
7. Week 3 to 6: fit out the vehicle using the checklist below.
8. Week 4: set your prices. Hourly labour rate, call-out fee, and fixed prices for the jobs you’ll do most (logbook service, pre-purchase inspection).
9. Week 4 to 5: set up how you get paid on the day: card reader or pay link, plus bank details on the invoice.
10. Week 5: set up records: job cards, invoices, a kilometre log and a receipts folder.
11. Week 6 onwards: first jobs. Friends, family and local businesses first, then a Google Business Profile and word of mouth.
12. Day 90: review. Real cost per km, real hours per job, unpaid invoices, and whether your prices hold up.

ABN, business name and GST

An ABN identifies your business to the government and to customers. The ABR warns that not everyone is entitled to one, and in a review you may be asked for evidence that you started, or took steps to start, the business from the date on your application. Keep the receipts for the vehicle, tools and insurance from day one.

You must register a business name if you aren’t trading under your own name. According to ASIC, John Smith doesn’t need to register “John Smith” but does need to register “John Smith Mobile Mechanics”.

GST registration is compulsory once your GST turnover reaches $75,000, or when you start a business and expect to reach it in the first year. You must register within 21 days of reaching the threshold, and you need an ABN first. Below the threshold it’s optional. Source: ATO, Registering for GST . Billing just 15 hours a week at $120 an hour passes $75,000 in 42 weeks (15 × $120 × 42 = $75,600), before you count parts.

Licensing: verified states

Licensing is set by each state and territory. The three below have official pages that cover mobile repairers directly. For every other state, check your state’s regulator through ABLIS, which lists the licences that apply to your activity and location.

In WA, Consumer Protection asks for police checks no more than three months old with the business licence application, and the WA Government says the licence is issued for three years. In the ACT, Access Canberra offers a 1-year or 5-year licence, and a licence from another state may let you work there under automatic mutual recognition.

Insurance: what to ask a broker

Prices vary with your location, turnover, vehicle and claims history, so get quotes rather than relying on anyone’s average. Take this list to a broker and get each answer in writing.

• Public liability: what limit do they recommend for working on customers’ cars at homes and workplaces? Does it cover damage to the customer’s vehicle while you work on it, or is that a separate policy?
• Products liability: are parts you supply and fit covered if one fails?
• Tools and equipment: are tools covered while in the vehicle, overnight at home, and on a customer’s driveway? What’s the per-item limit for scan tools?
• Vehicle: is the van or ute insured for business use, including the fit-out and signage?
• Income protection: what happens to your income if you can’t work for six weeks?
• Staff: if you take on an apprentice or employee, what workers compensation cover does your state require?

Vehicle and tooling checklist

Print this and tick it off as you fit out. It’s a starting kit for servicing, diagnosis and common repairs on passenger cars and light commercials. Add to it for the work you specialise in.

Getting paid on the day

A workshop still has the car when the bill is due. A mobile mechanic drives off and leaves it in the customer’s driveway. Invoice before you leave and take payment while you’re there.

Two ways to take payment on site

A card reader paired to your phone takes tap and chip payments. A pay link sent by text or email lets the customer pay by card on their own phone, which also works when they’re at work and the car is at home. Either way, also show your BSB and account number on the invoice for customers who prefer a transfer.

Say it at booking: “Payment is due on completion, by card or bank transfer.” If an invoice does go unpaid, the guide to chasing unpaid invoices has message templates and the rules on contact. In GoFolio you send the invoice from your phone by email and text, and the customer can pay it by card once you’ve connected your own Stripe account.

Record keeping

The ATO says to keep most business records for 5 years, starting from when you prepared or obtained the record, or completed the transaction, whichever is later. For a mobile mechanic, that means:

The kilometre log does double duty. It supports your tax claims and it tells you what a trip really costs, which is the starting point for pricing your call-out fee.