Start your food delivery business faster
If you’re trying to figure out how to start a food delivery business in Australia, you’re probably excited and a bit nervous. You’ve got a great idea, but you’re not sure which licences you need, whether you can work from home, how GST works, or what the ATO and your local council will expect from you.
In this guide, I’ll walk you through the specific steps for starting a food delivery business, not a generic café, not a food truck, so you know exactly what applies to delivery-first models.
By the end, you’ll understand your:
- Business model options
- Licences and food safety rules
- Structure and tax setup
- Insurance, and typical costs
You’ll also see where it makes sense to get help, so you can launch your business without worrying that a missing approval or BAS will come back to bite you.
How is a food delivery business different from a food business in Australia?
From a customer’s point of view, a food delivery business is simple: they tap an app or website, place an order, and food arrives.
From a regulatory point of view, it’s a bit more nuanced.
Under Australian food law, a “food business” is any enterprise that involves the handling or sale of food. That includes restaurants, takeaways, meal-prep services, food trucks and often, food delivery operations too.
If your delivery business:
- Prepares or packages food (e.g. meal prep, ghost kitchen), or
- Handles food in transit (e.g. you or your drivers transport hot or cold food),
you will usually be treated as a food business, not “just a courier”. That means you fall under the Food Standards Code and state/territory food laws, and you’ll generally need to register or notify your local council before trading.
If food passes through your hands (not just through your app), you need to think like a food business, including food safety and council registration.
Read more: How to Start a Food Business in Australia? A Complete Guide
7 steps to start a food delivery business in Australia
Step 1: Choose your food delivery business model
Before you worry about licences and tax, get clear on what you’re actually building. Different models trigger different obligations.
1. Aggregator partner model (Uber Eats, DoorDash etc.)
Here, your role is either:
- A restaurant/café using an app to reach customers, or
- A driver/contractor delivering on behalf of the platform.
If you’re the restaurant:
- You’re a food business with all the usual kitchen, food safety and council obligations.
- The app is just a sales channel; it doesn’t replace your responsibilities.
If you’re the driver:
- You generally need an ABN and to consider whether you should register for GST (note: food delivery is not the same as taxi/ride-sourcing, which must register for GST from dollar one).
- You’ll need the right vehicle insurance and may be treated as a contractor.
2. Independent delivery logistics provider
In this model, you:
- Don’t cook the food
- Provide delivery services to restaurants, grocers or meal services under your own brand
Your focus is on:
- Contracts with food businesses
- Logistics, drivers and vehicles
- Insurance (public liability, vehicle, workers’ comp if you employ staff)
You’re still likely to be caught by food laws if you handle food in transit, because you’re part of the supply chain that must keep food safe.
3. Meal prep or home-based food delivery business
This is where regulation bites hardest.
Examples:
- Healthy meal prep delivered weekly
- Tiffin-style home-cooked meals
- Dessert or baked-goods delivery made from a home or commercial kitchen
If you prepare food for sale, your operation will almost always be classed as a food business and you’ll need to:
- Notify or register with your local council as a food premises
- Comply with the Food Standards Code and any state-based food safety rules
- From December 2023, many food service/retail businesses that handle unpackaged, potentially hazardous ready-to-eat food must also meet Standard 3.2.2A, which adds requirements like a Food Safety Supervisor, food handler training, and documented food safety management tools.
Working from home doesn’t exempt you, councils regularly inspect approved home kitchens.
4. Restaurant and delivery combo
Here you run a restaurant or takeaway and add your own delivery channel (your drivers, your app/website, or telephone orders).
You’ll juggle:
- On-premise food business obligations (fit-out, food safety, council approvals)
- Delivery risks (vehicles, drivers, insurance, packaging, temperature control)
Read more: How to Start a Restaurant in Australia: Legal Requirements, Licenses & Costs
Step 2: Register your business and choose a structure
Once you’re clear on the model, you can set up the business side properly.
1. ABN, business name and TFN
Most food delivery businesses will need:
- An Australian Business Number (ABN), required for invoicing, working with platforms and registering for GST
- A business name if you’re not trading under your personal name
- A Tax File Number (TFN):
- Sole traders use their personal TFN
- Companies get a separate TFN
These are standard steps whether you’re prepping meals, running an independent delivery fleet, or spinning up a ghost kitchen.
2. Sole trader vs company for food delivery
A quick, practical view:
- Sole trader
- Cheapest and simplest to start
- You and the business are the same legal entity
- Unlimited liability, if something goes wrong (food safety, car accident, debt), your personal assets are on the line
- Company (Pty Ltd)
- Higher setup/ongoing costs
- A separate legal entity
- Limited liability if structured and run properly
- Often better if you’re hiring staff, scaling, or taking on more risk
Read more: Sole Trader vs Company: Which Business Structure Is Right for You in Australia?
There’s no one-size-fits-all answer, but many founders start as sole traders and later incorporate as risk and revenue increase.
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3. When do you need to register for GST?
As of 2025, you must register for GST if your business’s GST turnover (gross income excluding GST) is $75,000 or more per year, or if you expect to cross that threshold.
For a food delivery business, that threshold can come up quickly if:
- You’re processing high order volumes, or
- You’re also selling prepared food (meal prep, restaurant).
You can choose to register earlier to claim GST credits on things like fuel, packaging, equipment and software, but it adds BAS and record-keeping obligations, so it’s worth talking to an accountant before deciding.
Step 3: Get the right food business licences and council approvals
This is where food delivery differs from a generic courier service.
If your business prepares, stores, packages or handles food, you’ll almost always need to:
- Notify or register as a food business with your local council, and
- Meet the premises and food safety requirements set by that council and your state/territory.
Typical council steps include:
- Completing a food business registration/notification form
- Describing the type of food you handle and how you operate (home kitchen, commercial kitchen, food truck, delivery only, etc.)
- An environmental health officer (EHO) assessing your premises and fit-out before you open
- Paying registration and inspection fees
Each state and council has its own rules and risk classifications (e.g. Victoria uses food premises “classes”, other states use different frameworks), so always check your local council website or contact their environmental health team early.
Step 4: Meet your food safety obligations (including Standard 3.2.2A)
Food delivery businesses have a special responsibility to keep food safe during preparation, holding and transport.
Across Australia, you must comply with the Australia New Zealand Food Standards Code, including:
- Standard 3.2.2: Food Safety Practices and General Requirements, which covers safe food handling, temperature control, contamination risks and cleaning/sanitising.
From December 2023, many food service, catering and retail businesses, including those doing takeaway and delivery of unpackaged, potentially hazardous ready-to-eat food, also need to comply with Standard 3.2.2A: Food Safety Management Tools.
This can require:
- Having a Food Safety Supervisor with recognised qualifications
- Training food handlers in safe practices
- Keeping evidence of your food safety management processes, such as:
- Temperature logs
- Cleaning schedules
- Delivery procedures
For a food delivery business, this often includes:
- Time/temperature control during delivery (e.g. hot food kept above 60°C, cold food below 5°C)
- Using appropriate insulated bags or vehicles
- Procedures for what happens if delays or issues occur in transit
Step 5: Protect your food delivery business with the right legal documents
You don’t need a legal library, but you do need some basics.
Depending on your model, consider:
- Service agreements with restaurants or food producers
- What you’re responsible for (delivery only vs. also handling payments)
- Service levels, fees/commissions, liability and termination
- Contractor agreements for drivers
- Clarifying whether they are independent contractors or employees
- Who is responsible for vehicle costs, insurance, equipment and safety
- Employment contracts (if hiring staff)
- Website/app Terms & Conditions and Privacy Policy, especially if you process online orders and store customer data
For more complex setups, it’s worth getting legal advice but even simple operations should avoid “handshake only” arrangements.
Step 6: Set up payments, invoicing and accounting systems properly
Getting paid is the fun part but it needs to be done in a way that keeps the ATO and your future self happy.
Payments and invoicing
Think about:
- How customers pay:
- Through platforms (Uber Eats, Menulog, DoorDash, etc.)
- Through your own website/app
- In-person (cash/card on delivery)
- How money flows:
- Platform → you (after commissions)
- You → restaurants (for logistics models)
- You → drivers (wages/contractor fees)
You’ll need compliant invoices/tax invoices that show:
- Your ABN
- Business name and contact details
- Whether GST is included (if you’re registered)
- Breakdown of delivery fees, food, and any other charges
Accounting stack
To stay on top of things (and not drown in spreadsheets), set up:
- A dedicated business bank account so income and expenses are clearly separated
- Cloud accounting software (e.g. Xero) with:
- Properly set up bank feeds
- Tracking for:
- Platform payouts vs direct sales
- Commissions and fees
- GST on sales and purchases
Sleek typically helps food delivery businesses by:
- Setting up Xero, bank feeds and chart of accounts
- Configuring GST and BAS correctly for your model
- Handling ongoing bookkeeping, so your numbers are always BAS- and tax-ready
Step 7: Insurance and risk management for food delivery
Food delivery is inherently riskier than a simple online business, you have hot food, roads, and sometimes employees or contractors in the mix.
Common policies to consider:
- Public liability insurance
- Covers injury or property damage to third parties (e.g. someone trips over a delivery bag)
- Product liability insurance
- Usually bundled with public liability; covers claims from people getting sick or injured from the food you supply
- Commercial vehicle insurance
- For vehicles owned by the business (vans, scooters, etc.)
- Drivers using their own cars often need to tell their insurer they’re using the vehicle for business
- Workers’ compensation insurance
- Required once you have employees (rules and thresholds vary by state/territory)
Talk to a broker who understands hospitality/food and delivery, not just generic business insurance.
Typical startup and ongoing costs for a food delivery business
Every model is different, but here’s a practical way to think about costs.
One-off setup costs
Cost category | Typical range | Notes |
ABN | $0 | Free when you apply directly via the Australian Government Business Registration Service |
Business name registration | $45 (1 year) / $104 (3 years) | Current ASIC business name registration/renewal fees |
Company registration (Pty Ltd) | $611 | ASIC fee to register a proprietary limited company (if you choose a company structure). |
Council food business registration / approval | $150 – $400+ per year (varies) | Registration/inspection fees depend on state, council and your risk class (e.g. higher if handling high-risk food). |
Commercial kitchen / ghost kitchen setup | Shared hire: ~ $15 – $40+ per hour | Shared kitchen hire is usually hourly, session-based or daily. Premium sites and capital cities can be more |
Branding, website & basic ordering setup | $100 – $500+ (DIY) | Domain, basic website and simple ordering plug-ins on a DIY basis |
Initial legal & accounting setup advice | $500 – $2,000+ | For structure advice, contract reviews and tax/GST setup, depending on complexity |
Ongoing costs for a food delivery business in Australia
Cost category | Typical range | Notes |
Rent / kitchen hire | Shared: hourly as above
Dedicated premises: four-figure monthly | Pay-as-you-go shared kitchen or dark kitchen space
Commercial leases in most capital city areas |
Ingredients & packaging | Highly variable | Major component of your cost of goods sold (COGS); depends on menu, volume and suppliers |
Platform commissions | Often ~25% – 30%+ of order value | Marketplace commissions for platforms like Uber Eats / DoorDash typically sit in this band |
Delivery & vehicle costs | Variable | Fuel, maintenance, tyres, tolls, and any lease payments if you own the fleet |
Public & product liability insurance | Hundreds to low thousands per year | Depends on turnover, cover limit and risk; often bundled together |
Commercial vehicle insurance | Varies | Based on vehicle type, use, value and driver profile |
Workers’ compensation | % of wages (state-based) | Required once you have employees; rate depends on wages and your industry risk category |
Bookkeeping, BAS & tax support | A few hundred $ per quarter (minimal)
A few hundred $ per month (managed) | For basic BAS + year-end work only For ongoing bookkeeping + BAS + tax in a bundled package, depending on volume/complexity |
Accounting software | $30 – $80+ per month | For cloud accounting software (e.g. Xero) depending on plan |
Licences & registration renewals | $150 – $400+ per year (indicative) | Ongoing food business registration and inspection/admin fees, depending on council and risk level |
Most lean food delivery startups in Australia (using an approved home or shared kitchen) should budget roughly $1,000–$5,000 to get off the ground, covering registrations, basic branding, initial kitchen access and advice. If you’re leasing and fitting out your own commercial or ghost kitchen, the initial outlay typically jumps to around $20,000–$100,000+, depending on location, size and equipment.
Common mistakes to avoid when starting a food delivery business
A few patterns repeat across delivery startups:
- Not checking council requirements before trading
- Result: surprise shutdowns or costly retrofits to meet food premises standards
- Assuming platforms take care of everything
- They don’t, you still have your own obligations for food safety, tax and business structure
- Ignoring GST until turnover crosses $75,000 and then scrambling to catch up
- You must register within 21 days of meeting the threshold; missing it can mean backdated GST and penalties
- Running all income and expenses through personal accounts
- Makes BAS and tax harder, and makes it difficult to see if your business is actually profitable
- No written contracts with drivers or restaurant partners
- Leads to disputes over who’s responsible when something goes wrong
- No structured bookkeeping and BAS process
- Creates ATO risk and makes it impossible to make good pricing/margin decisions
How Sleek can help you launch your food delivery business
Starting a food delivery business isn’t just about orders and drivers. It’s registrations, GST, BAS, bookkeeping, and staying on the right side of the ATO. That’s where Sleek comes in.
How Sleek helps food delivery businesses in Australia
- 100% digital setup
Get your food delivery business set up online: ABN, company registration (if you need it), business name and GST; all handled digitally, as smoothly as booking a flight. - Local expert advice
Speak with Australian accountants who understand delivery models, platform payouts, GST, and sole trader vs company decisions, so you can choose the structure and setup that actually fits your business. - No hidden fees
Fixed, transparent pricing for bookkeeping, BAS and tax, no surprise hourly bills. You’ll know exactly what it costs to keep your food delivery business compliant all year. - All-inclusive ongoing support
Year-round help with bookkeeping, BAS lodgements, tax returns and ASIC compliance (for companies), all managed online so you can focus on orders, not paperwork.
Ready to build a food delivery business that’s set up properly from day one?
Talk to an expert at Sleek.
FAQs on how to start a food delivery business
Often yes, but only if your council approves your home kitchen as a food premises. You’ll need to apply, meet structural and hygiene standards, allow inspections, and comply with the Food Standards Code.
Legally, the food business selling to the customer (you) usually carries responsibility under Australian Consumer Law, even if an app processes the order. Platforms have their own policies, but they don’t remove your consumer law obligations.
If you’re caught by the Privacy Act, you must follow the Australian Privacy Principles. Even if you’re under the formal threshold, you’re still expected to handle personal data securely and be transparent about how you collect, use and store it.
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