How to start a vending machine business in Australia comes down to five things: get an ABN, register for GST once you reach the threshold, notify or register your food vending machine with the council or state food authority, sign a site agreement with each host, and leave tobacco alone unless your state and the venue allow it. The rest is good sites and a reliable restock routine.
- An ABN is free through the Australian Business Register.
- You must register for GST once your GST turnover reaches $75,000, and you need an ABN first.
- Food vending machines are treated as food premises. In Victoria, for example, you register or notify each one with the local council through the statewide FoodTrader system.
- Tobacco vending is banned outright in South Australia and limited to liquor-licensed premises in Queensland.
Sole trader, company or trust
A sole trader with an ABN is the usual way to start: cheap, quick, and the income goes on your own tax return. A Pty Ltd company registered with ASIC separates the business from you but adds company tax returns and director duties. Some operators later use a trust. An accountant who knows small business is worth one meeting before you sign a machine finance agreement.
ABN and GST
Registering for an ABN is free, and you need one to register for GST. Registration for GST becomes compulsory when your GST turnover (gross business income minus GST) reaches $75,000. Turnover is sales, not profit, so a few busy machines can get there faster than you expect. Ask your accountant how GST applies to the specific products you stock.
Registering the machine as a food business
Food rules are run by the states and territories, and usually administered by your local council. In Victoria, food vending machines are deemed food premises and must be registered or notified with the council through FoodTrader. Other states have their own notification schemes. Before you place a machine, call the council's environmental health team, tell them what you will sell, and ask what they need.
Tobacco, vapes and other restricted items
Tobacco vending is where states differ most. South Australia made selling tobacco through a vending machine unlawful. In Queensland, tobacco vending machines are only permitted inside liquor-licensed premises. Western Australia's guidance limits them to liquor-licensed premises or staff areas at mine sites. If you are not running a licensed venue, assume tobacco is off the menu. Vape rules are strict and change often, so leave vapes out entirely.
Site agreements, banking and insurance
- Site agreement: commission (if any), power costs, access, notice period and who is liable for damage, all in writing.
- Business bank account from day one, separate from your personal account.
- Public liability insurance: most hosts, councils and building managers ask for it. Add cover for the machine and stock.
- Payments: Australians tap their cards for small purchases, so a cashless reader is close to essential.
What it costs
We do not quote machine prices, because we have not found an official source for typical Australian prices. Get written quotes from Australian suppliers, compare warranty and delivery, and add the card reader's fees to your monthly costs.
Your first week
- Apply for your ABN and open a business account.
- List ten sites with steady foot traffic: warehouses, mine and depot staff areas, gyms, TAFE campuses, car washes, workshops.
- Pitch with our Australian pitch script.
- Before the machine goes in, sort the council food registration or notification for that site.