Legal Obligations of Starting A Food Business

• Reading Time: 5 Minutes
• Published: January 29, 2021
• Last Updated: February 10, 2025

A food business is quite attractive business provided a low barrier in terms of knowledge and costs requirement. You can start a food business like a food truck at an investment as low as A$10,000, with this being said the overall investment is hugely dependent on what type of food business you want to pursue and the location. In food businesses like restaurants and cafes, location plays an essential role and could make or break your business. Apart from this, many other factors could impact your business viability, such as your food menu, quality of service provided, ambience. The ability to market your business, manage payroll, record all business transactions, run numbers to track business performance while staying tax compliant are also some complex task food business owners struggle with.

As a restaurateur, you can outsource a few important tasks like marketing, payroll, taxation, legal compliance, and accounting, making the overall process slightly less overwhelming. Outsourced accounting services can be beneficial for restaurant business owners, especially if they are new to the business and have no prior business financial knowledge. This is of great help as it is challenging to find an expert restaurant accountant with prior experience in the same domain.

All the above tasks we talk about are operational tasks, but there is one preliminary task that many business owners dread: legalities. There are many legal requirements and obligations that you must fulfil before you start your business, as food has to be safe to be consumed by customers. The legalities and obligations are simply in existence to protect you, your customers, staff, and everyone related to your business.

Let us understand each of these legalities in detail in this article.

Food Business Licenses

Let us delve into the first and foremost important legality that is registering for the business license. First, get in touch with your local council for a business license and inform them which type of food business you have decided to go ahead with. Restaurants, Cafes, Mobile food units like a food truck or other type of food businesses, there are many more that you can opt for and you need to zero down on a particular type. You might be asked about the type of food that will be served and whether you will be selling pre-packaged food, so on and so forth.

Council Certificates

Now that you are clear about your food business licenses, you must also get a few certificates from the council which is vital for your business’s operation. These are mainly the ones that are linked to the physical space from where you are operating your business. It includes a zoning certificate, building certificate, construction certificate, compliance certificate, regulated water system registration, fire safety certificate, and much more.

Food Safety Standard

Food safety standards are drafted & outlined by Food Standards Australia New Zealand (FSANZ). It applies to every business involved in handling food for sale, and restaurant businesses must follow the food and safety regulations. All food businesses in Australia must follow the food safety standard. It is mandatory for certain food businesses with high risk to have a food safety program based on HACCP principles.

Certain state or territory also makes it necessary to nominate a Food Safety Supervisor (FSS). Your Food Safety Supervisor must have proper training and gained specific competency units under the National Vocational Education Training system from Registered Training Organisation (RTO). Your Food Safety Supervisor could be a part of your full-time staff or an external contractor. You need to develop a Food Safety Program in consultation with your Food Safety Supervisor. The Food Safety Program you developed needs to be verified by your local council regarding whether it meets the standard of the council’s food laws and regulations. Your local government can audit your Food Safety Program at any time, and in case of non-compliance, you may face a penalty.

Generally, your food business must have a Food Safety Supervisor if you serve ready to eat food, pre-packaged food that is not sold or served in its original package, or potentially hazardous food. If your business is based in New South Wales, Queensland, South Australia, Victoria, or the Australian Capital Territory, it is mandatory to have a Food Safety Supervisor as a staff member available at the premise all time.

Outdoor Dining

The legalities of business having outdoor dining where businesses allow customers to dine outside in the open is simple. Firstly, you must provide appropriate tables and chairs for an outdoor setting, and in case you own a cafe business, you must obtain an outdoor dining license from your local council.

Liquor License

If you provide alcohol to your customers, you may require an On-Premises license, and Liquor Approved Manager license. You will also need a National Police Certificate which includes a criminal record check before applying for a liquor license. Serving alcohol also requires that all your employees involved in serving alcohol have Responsible Service of Alcohol (RSA) training and have the certificate for the same.

Legal Employment Obligation

You must understand your business structure and its implication on wages and the mandatory benefits required to be provided to your employees. Your staff is entitled to a specific minimum wage, and then you must ensure that you provide a work environment that will be safe and free from harassment or discrimination.

Music License

Music is a vital part of the food business offering dine in, but that does not mean you can play any song without a music license. You will need a music license if you want to play copyrighted music at your food business premise. You can take the license from OneMusic Australia depending on the type of business you are operating.

For better clarity of each state and territory law and regulation, we suggest you read the information on the following site.

• ACT Health – Health Protection Service for Australian Capital Territory food business law and regulation
• New South Wales Food Authority for New South Wales food business law and regulation
• Northern Territory Department of Health for Northern Territory food business law and regulation
• Queensland Department of Health – Food Safety Standards and Regulation for Queensland food business law and regulation
• Victoria Department of Health – Food Safety and Regulation for Victoria food business law and regulation
• South Australia Department of Health for South Australia food business law and regulation
• Department of Health and Human Services – Food Safety for Tasmania food business law and regulation
• Western Australia Department of Health – Food Unit for Western Australia food business law and regulation

The Australian Business Licence and Information Service will also serve you as a helpful resource. You will be able to search for your license and certificate requirements based on your location and business type.

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