“Really liking Workshop Software and how professional the invoices look. Support has been great the whole time. They are always consistent in calling us and making sure our questions are answered.”
AJ’s Mobile Automotive
You might want to open your own auto repair business, but have no idea where to start when it comes to obtaining the necessary permits.
The process of applying for a licence and navigating legal intricacies can be tricky. Permits will almost always vary depending on your state and local laws, and there are a lot of boxes you need to check before you can get started.
Most likely, yes – in every state except Victoria, you will need a motor vehicle repairer’s licence to operate your business. Holding a licence ensures you are certified to run a mechanic business and that you are abiding by all state and local guidelines.
You’ll need to have your licence number and certificate of authorised premises clearly posted in your mechanic shop to be legally operational.
Business licences require an application and processing fee. They are valid for three years, typically only in the state in which they were obtained, and must be renewed 28 days before expiring. Licensing requirements vary by state or territory, but you will usually have to fulfil several conditions before applying, including proof of certification, premise requirements, and tax documentation.
You can visit the Australian Business Licence and Information Service (ABLIS) and answer a series of questions about your business to find out what licences are required.
There are three basic types of business you can register your repair shop as:
Yes – you and any other mechanics you employ will need to be officially certified in the classes of repair work that you offer at your shop. These licences both allow the holders to complete operations in their certified class unsupervised, and supervise unlicensed employees in training.
There’s a wide variety of repair classes in which you can become qualified, and the classifications may differ depending on your state. Think about what you are already certified in and what type of mechanics you would like to hire and train to determine what services you should fill out your application with.
You will likely also require additional certification if you want to perform safety or emissions inspections or examine second-hand vehicles.
You will need to undergo formal training and meet certain qualifications to obtain a certificate, typically through an apprenticeship with a Registered Training Organisation. You will also need to submit an application, proof of qualification and identity, and a processing fee to your state office concerning industry regulation and safety. Certifications can also be completed through assessments offered by a third-party testing organisation.
Repairer’s certificates typically last between one and five years before they need to be renewed.
You will need to obtain valid premises and ensure they are authorised before applying for a business licence for your auto repair shop.
To obtain a business licence for your mechanic shop, you will also need to ensure that your premises meet the correct standards and have them authorised. This certifies that all the necessary zoning laws and building regulations have been met. Your registered premises can be fixed, a garage for example, or mobile, such as operating out of a van or truck.
Whether they are mobile or fixed, your premises must be suitable for your auto repair business and the classes of operations you are qualified for. This takes into account aspects such as equipment, location, and required space.
There are often other regulations, typically enforced on the state level, that your mechanic shop must comply with before you have your application approved. The Motor Dealers and Repairers Act of New South Wales, for example, requires shop owners keep accurate records of sales and repairs.
Standards like these help ensure that repair businesses are not engaging in unfair or damaging business practices.
In addition, government agencies overseeing business regulation often perform random compliance checks to encourage businesses to maintain good standards. If your mechanic shop violates safety laws, you face the risk of being fined or having your licence revoked.
It’s important when you’re thinking of starting a repair shop to ensure that it will not create harmful environmental effects on your community. Environmental practice laws will also vary slightly depending on your location. But your repair shop will likely have to meet requirements such as safe transportation and disposal of oil and other chemicals, batteries, and other potentially dangerous waste.
An example of suggested guidelines to follow can be found at the Department of Environment and Climate Change of New South Wales.
The health and safety of your employees and customers is also a significant consideration. Most likely, you will need to obtain compensation insurance for your employees in case of an accident or other workplace injuries. This is particularly important for auto repair shops, as employees often deal with potentially dangerous equipment and materials.
You will also have to comply with the Australian Consumer Law, a national act that ensures fair and safe practices for your customers. This applies to issues such as fair contract terms, consumer guarantees, and accountability for the safety of products and services. You can access a comprehensive guide to ACL compliance at the Australian Consumer Law website.
Another aspect of owning your own auto repair business that requires paperwork is tax-related documentation. Most likely, you will need to obtain the following documents for tax purposes:
There are a few other things you should consider when opening an auto repair shop beyond the legal steps. While meeting these requirements will ensure you have the equipment and experience to run a shop, you will also need to think about aspects such as finances and marketing.
Opening a repair shop can require a lot of overhead costs before you start making any profit. You will likely need a large garage space, overhead lifts, and other expensive tools. If it seems like a good option for you, you may want to look into filing for a small business loan to help you get started.
You may also want to look into purchasing business software, such as the programs offered by Workshop Software. This all-in-one software can simplify managing your accounts by integrating many aspects of business management.
You’ll also want to think about how to market your new mechanic shop. Who will be your target market, and what do you want your shop known for? You may want to consider hiring a graphic design artist to help you create a great ad.
You’ll also want to look into trademarking the name of your mechanic shop. This ensures that you own the name for the products and services you offer and have the right to profit from it. The name of your company cannot be a duplicate of any other company’s trademarked name, so consider this when deciding what to call your shop.
The regulations set down for auto repair businesses ultimately protect both the business owner and the consumer. Following the proper legal processes may seem like a hassle sometimes, but it’s a necessary first step on your road to being the owner of a successful repair shop.
https://business.gov.au/products-and-services/fair-trading/australian-consumer-law
https://www.commerce.wa.gov.au/consumer-protection/motor-vehicle-repair-business-licence