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Founder Guide · Updated 18 May 2026

How to Start a Hair & Beauty Salon in Australia, 8-Step Guide

Starting a salon in Australia takes eight ordered steps: pick your niche, register an ABN and for GST, secure premises and council approvals, obtain skin-penetration permits, arrange insurance, fit out equipment, set pricing, and launch your opening week. This guide is practical, action-ordered, and AU-specific, covering each step and the tools you need to open.

Disclaimer: This is plain-English guidance, not legal, financial, or health-regulation advice. Council rules, retail-leases Acts, and award rates change, always confirm against your council, the Fair Work Ombudsman, and your accountant before opening.
1

Pick your salon niche

The 'salon' label hides seven or eight quite different businesses. Each has a different fit-out cost, regulator overlap, target customer, average ticket, and software stack. Picking your niche before you sign a lease saves six-figure mistakes, a brow-and-lash bar in a 35 m² shopfront is profitable; the same site as a full-service hair salon is not.

Hair salon

Cut / colour / treatment. Highest fit-out cost (basins, plumbing). Returning client base.

Beauty salon

Facials, waxing, body treatments. Treatment rooms, ventilation. Many councils require skin-pen registration.

Barber shop

Men's cuts, beard work, hot-towel. Lower fit-out, walk-in-heavy. Cash-flow consistent.

Mobile beauty / hair

No premises lease. Vehicle becomes the asset. On-site PL + commercial vehicle policy.

Brow & lash bar

Lash extensions, brow lamination, tinting. Compact footprint, very high margin per chair.

Nail salon

Manicure, pedicure, gel, acrylics, dip. Ventilation is non-negotiable (acetone/MMA fumes).

Day spa

Massage + facial + body + sometimes laser. Highest treatment liability stack.

Hybrid (hair + beauty)

Common at suburban centres. Award classification gets messy across services.

2

Set up your business: ABN, structure, GST

Salons are people-intensive and inventory-light, which favours simple structures early. An Australian Business Number (ABN) is mandatory, free, and instant. Structure choice, sole trader vs Pty Ltd, matters more as soon as you have staff or you plan to do skin-penetration work where claims risk is real.

Sole trader

Cheapest. Personal liability, paired with strong public liability + treatment cover.

Pty Ltd

Limited liability. ~$500 setup, ~$300/yr ASIC. Recommended once you have 2+ staff.

GST threshold

$75,000 turnover, register before you breach. Add 10% on services and retail product sales.

BAS frequency

Quarterly for most salons. Track GST monthly so the quarter doesn't blindside you.

Business name

Optional. $40/yr ASIC. Required if you trade under anything other than your legal name.

TFN for the entity

If you go Pty Ltd or partnership, you need a separate TFN for the entity.

3

Premises: lease, DA, zoning, ventilation

The single most expensive mistake new salon operators make is signing a five-year lease before they understand whether the council will let them do the services they planned. Every state has a Retail Leases Act, every council has zoning, and a 'beauty salon' development consent does not automatically cover skin-penetration work.

Retail lease Act

NSW Retail Leases Act 1994, VIC Retail Leases Act 2003, QLD Retail Shop Leases Act 1994, disclosure statements are mandatory.

Development Application

Some councils require a DA for any 'personal services' use; some only for changes of use. Confirm before signing.

Zoning

B1/B2 Local Centre, B3 Commercial Core, MU1 Mixed Use, etc. Check the LEP. Some residential streets exclude salons entirely.

Ventilation

Nail and waxing rooms need extraction beyond domestic-grade. BCA Class 6 minimum for personal services.

Plumbing

Each basin needs hot/cold and trade waste. A converted office without plumbing easily costs $25k to $60k to fit basins.

Accessibility

Disability Discrimination Act + state Building Code accessibility provisions. New fit-outs must comply.

Make-good clause

Most retail leases require restoration to original condition on exit. Photograph everything on day 1.

4

Skin-penetration permit (waxing, piercing, dermal)

If your salon does any service that breaks the skin, body piercing, microblading, dermal needling, tattoo, cosmetic tattoo, you need a skin-penetration registration with your local council before you open. Waxing and ear-piercing are state-specific edge cases. Operating without registration is a strict-liability offence with fines into the tens of thousands.

NSW

Public Health Regulation 2022, notify local council. No fee in most LGAs but inspection is routine.

VIC

Public Health and Wellbeing Regulations 2019, register with council, pay annual fee, expect inspection.

QLD

Public Health (Infection Control for Personal Appearance Services) Act 2003, license required, two tiers (higher-risk vs lower-risk).

SA / WA / TAS

Council registration; inspection cycle 1 to 2 years. Hygiene compliance is the audit focus.

ACT / NT

Health-directorate registration. Sterilisation records required to be kept on premises.

Common scope

Microblading, cosmetic tattoo, dermal needling, body piercing, tattoo, always in scope. Waxing, usually out of scope. Confirm with your council.

5

Insurance stack

Salons sit at the intersection of premises risk, treatment risk, and employee risk. Three separate policies cover those three exposures, and most operators discover the gaps only after a claim. A storefront salon without glass cover and an aesthetic salon without treatment liability are the two most common, and most expensive, gaps.

Public liability

$10m minimum residential, $20m for shopping-centre tenancies. Required by most landlords.

Treatment / malpractice

Mandatory if you do facials, peels, lasers, dermal, lash glue allergens. Separate from PL.

Workers compensation

State scheme. Compulsory the moment you hire even casual staff. ~2% to 4% of payroll for personal services.

Tools of trade

Equipment cover for clippers, scissors, laser, autoclave. Cheap, often bundled.

Glass

Required for shopfronts, premises lease usually mandates separate glass cover.

Cyber & privacy

Mandatory data-breach notification under the Privacy Act once turnover hits $3m. Booking systems hold sensitive data.

6

Equipment and fit-out

Equipment cost varies enormously by niche. A solo barber can open under $8k. A two-chair hair salon needs $40k to $80k. A four-room beauty salon with laser and microcurrent goes well past $100k. Whatever you buy, the sterilisation hardware is where compliance lives, autoclave records are the first thing a council inspector asks for.

Hair stations

Chair, mirror, station ~$1,200 to $2,500 each. Basins $1,500 to $3,500 each plus plumbing.

Dryers / treatments

Hood dryer $400 to $1,500, steamer $300 to $800, climazon $1,800+.

Beauty beds

Hydraulic facial bed $600 to $1,800; electric bed $1,800 to $4,500.

Autoclave / UV

Steam autoclave $1,500 to $3,500 (mandatory for skin-pen). UV cabinet alone is NOT sufficient under AS/NZS 4815.

Reception / POS

Desk, chairs, retail shelving, tablet or PC, and a card terminal and stand, $300 to $1,500 all up.

Signage & branding

Shopfront signage $1,500 to $8,000 depending on illuminated vs flat. Council approval often needed.

Towels / supplies

Don't skimp, 60+ towels per chair, professional-grade product, colour bowls/brushes. $1,500+ to open.

7

Pricing, service menu, retail margin

Salon pricing has two big traps: (1) anchoring to what the salon down the street charges, instead of to your cost base, and (2) ignoring retail margin entirely. A profitable salon usually clears 15% to 25% of revenue from retail product, not just services, but only if the menu is built that way from day one.

Hair pricing benchmarks

Women's cut $60 to $110, colour $140 to $260, balayage $250 to $500, blow-dry $40 to $70.

Beauty pricing benchmarks

Brazilian wax $50 to $80, facial $90 to $160, brow lamination $80 to $120, lash extensions full set $140 to $220.

Service times

Build the menu around realistic chair-occupancy time, including consult and clean-down. Under-budgeted time kills margin.

Retail margin

Professional product wholesale ~50% RRP. Target 15% to 25% of total revenue from retail.

Loyalty & packs

5+1 packs, member pricing. Caution: aggressive discounting trains customers to wait for sales.

Online booking

60% to 80% of new bookings come from online. Show prices for routine services, hiding them costs bookings, not protects margin.

8

Opening week: POS, booking, Google, walk-ins

The first 30 days set the rhythm. The salons that get traction quickly are the ones that have their booking platform live before they paint the walls, their Google Business Profile verified, and an Instagram with a dozen real photos. The salons that struggle open with a paper diary and an unverified Google listing, and lose two months to building the basics under pressure.

Booking platform

Square Appointments, Fresha, Phorest, Timely, or OneBookPlus. Pick before you trade, switching mid-year is painful.

POS

Same platform as booking is ideal. Otherwise reconciliation eats 5 hours a week.

Google Business Profile

Free. Verify the address (postcard or video) the moment you have a sign on the door. Reviews compound.

Instagram + TikTok

Before-and-after content. Don't post empty-salon photos for the first month, book a model day.

Walk-in conversion

60% of walk-ins will book if asked; only 20% will rebook on their own. Ask every time.

Soft launch

Friends, family, neighbour businesses 50% off for a week. Real bookings, real photos, real reviews.

Email + SMS

Capture every customer. Email is for promotions, SMS is for appointment reminders. ~30% no-show reduction with reminders.

Watchouts

6 rookie mistakes to avoid

Every one of these has cost an operator we've spoken to more than $20k. Spend an hour on each before you sign anything.

Signing the lease before checking the council

DA, zoning, and skin-pen registration are independent. A 'shop' lease doesn't guarantee a 'beauty salon' use is approved. Always ring the council planning team before you sign.

Under-budgeting plumbing and ventilation

Basin installation in an unplumbed shell is $25k to $60k. Nail-salon ventilation done properly is $8k to $15k. Quotes can blow out the entire fit-out budget if estimated wrong.

Skipping treatment liability cover

Public liability does not cover allergic reactions to lash glue, dermal complications, or laser burns. Many operators discover this only after a claim is denied.

Hiring contractors who should be employees

The 'chair rental' / contractor model gets aggressively audited by the ATO and Fair Work. Genuine contractors set their own prices, take their own bookings, supply their own equipment. Otherwise = employee = award rates + super + workers comp.

No autoclave records

Owning the autoclave isn't enough, you must keep weekly spore-test results and per-cycle logs. First thing a council inspector requests after any skin-penetration complaint.

Booking software as an afterthought

Paper diaries hide double-bookings, lost no-shows, and unbilled top-ups. Operators report 15% to 25% revenue uplift in the first quarter after switching to a real booking platform.

Practical tips for operators

Build the calendar around chair-occupancy, not service price

A $90 hair cut that takes 60 minutes pays more per chair-hour than a $250 colour that takes 3 hours. Build the booking grid around chair-occupancy first; price second.

Take a 25% deposit on first-time bookings

Online bookings are convenient but no-shows compound fast. A non-refundable 25% deposit cuts no-shows by 60% to 80% with negligible impact on conversion, most salons see net revenue up after introducing it.

Keep autoclave logs digitally

Paper sterilisation logs go missing. Most modern autoclaves print or USB-export per-cycle records. Set up a Drive folder + weekly spore-test slot in the calendar from week one, it's the difference between a five-minute council inspection and a three-hour incident.

Hire one extra junior before you think you need to

Solo operators routinely hit a revenue ceiling around 65% to 75% of chair occupancy because they can't take calls, do walk-ins, or restock between bookings. A part-time junior at $25/hr often unlocks $400/day of additional bookings.

Frequently Asked Questions

How much does it cost to open a hair and beauty salon in Australia?

Mobile beauty or solo barber: $8,000 to $20,000. Small two-chair salon in an existing fit-out: $25,000 to $60,000. Full hair-and-beauty salon in a new shell with plumbing, ventilation, and laser: $120,000 to $350,000. Day spas with laser and multiple treatment rooms regularly exceed $500,000.

Do I need a Cert III to open a salon?

You don't need a qualification to own a salon, but you do to perform regulated services. Cert III in Hairdressing for hair, Cert III in Beauty Services or Cert IV in Beauty Therapy for facials/waxing/lashes. Laser and IPL require state-level laser-safety qualifications in WA, TAS, and QLD; other states are looser but moving toward registration.

How long until a new salon breaks even?

Solo operator with a small client base from a previous role: 3 to 6 months. New site without an inherited book: 6 to 14 months. Heavy fit-out salons (laser, spa) sometimes take 18 to 24 months to amortise. The fastest path to break-even is high chair occupancy, and that comes from booking platform and Google reviews, not pricing tricks.

Can I run a salon from home in Australia?

Sometimes, depending on council zoning, body-corporate rules if you're in a unit, and the specific service. Most councils allow low-intensity home beauty (waxing, nails, brows) with a 'home occupation' approval; skin-penetration services usually trigger full commercial-premises requirements. Always ask the council before advertising.

What's the most profitable salon niche?

Per chair per hour, lash extensions and high-end colour. Per square metre of premises, brow-and-lash bars and barber shops. Per total turnover, multi-operator hair salons and day spas. Lowest margin: discount nail bars in shopping-centre malls, high overheads, fierce price competition.

Do I have to pay award rates from day one?

Yes, the Hair and Beauty Industry Award (MA000005) covers virtually all employees from the first hour. Even casual juniors must be paid the casual loading (+25%) and Saturday/Sunday penalties. Treating staff as 'subcontractors' to dodge the award is the #1 underpayment issue Fair Work pursues in this industry.

Open with the right booking platform from day one

OneBookPlus is the all-in-one platform for Australian salons, bookings, deposits, online calendar, SMS reminders, GST-compliant invoicing, retail product sales. Free to start.

Before you hire, compare the booth rental vs employee stylist guide and check wage rates in the Hair & Beauty Award (MA000005) guide.

Rather look before you sign up? Open a live demo account with real data in it, or compare the AUD plans on the pricing page.

Reviewed by Bishal Shrestha

About the author

Bishal Shrestha, Founder of OneBookPlus

Bishal Shrestha

Founder & CEO, OneBookPlus

Bishal spent a decade running digital projects for Australian small businesses before founding OneBookPlus. He writes and maintains these pages, and publishes what OneBookPlus does not do alongside what it does.

A decade running digital projectsPersonal site: bishal.com.auMelbourne, Australia
Read the founder bio

How this page was researched

The compliance and licensing statements above are taken from the bodies this page links to, including NSW Fair Trading, the ATO and the Australian Business Register, so you can read the rule rather than take our word for it. Plan prices come from the OneBookPlus price registry, so the page and the checkout cannot disagree. Everything said about OneBookPlus describes what the product does today, and the page says so where it does not do something.