How to Start a Car Wash Business in Australia In 5 Simple Steps [2025]

In case you're considering starting a self-service bay, establishing a mobile detailing unit, or constructing a full-service car wash, 2025 is an ideal time for that.

In this guide, we'll lead you through everything you need to know, from determining the best location and business strategy to registering with the appropriate authorities and establishing a sustainable business.

Let's start!

What Are the Best Places in Australia to Start a Car Washing Business?

The Australian car wash industry is expected to increase at an annual rate of 4.8% from its 2022 valuation of $642 million to $930 million by 2030.

So this industry is generally on the rise, but still a few places stand out:

5 Steps To Start a Car Wash Business in Australia

Now that you see that it is a good idea to start a car washing business in Australia, let's see how to do it!

Step 1: Identify Gaps in Service

Before you start your car washing business, you need to understand where the demand is and where the service isn't meeting it.

That includes taking a thorough look around your neighbourhood, or wherever you intend to put up shop, to determine what is missing.

🔸 Start by determining how many vehicle washes are already operating nearby.

Are they always full, or do they resemble abandoned places?

🔸Talk to people, friends and neighbours, and ask what type of service they use and what they wish were better.

You may find that there are a lot of customers who want a quick wash and vacuum on the go, but the only choice available is a leisurely, full-detail service that takes an hour.

Perhaps families want something affordable, but all they can find are high-end detailing shops that charge a premium.

🔸 Checking internet reviews of your rivals is also worthwhile. When people are dissatisfied, they tend to be quite honest.

Perhaps the customer service is slow, the opening hours don't work for busy schedules, or both.

Fill in the blank, and you'll have a reason why people should pick you.

🔸 Look for places with increasing traffic, shopping centres, or new residential complexes.

For vehicle wash companies, these locations are ideal, particularly if there is nothing close by.

In essence, the goal is to identify a need and then be the best person to provide it.

Step 2: Determine the Demand for Different Types of Car Washes

Every car wash is different, and what works in one suburb might not work in another.

It's crucial to consider the many car wash options and determine what the locals really want before deciding on a business plan.

Below is a summary of the advantages and disadvantages of three of the most common types:

➡️ Automatic Car Wash

You can often see these drive-through machines at service stations.

Pros:

✅ Quick and easy (ideal for crowded urban locations)

✅ Few employees are needed.

✅ High potential volume per day

Cons:

❌ Costly to install and keep up

❌ Can harm older cars' paint, which some buyers might avoid.

❌ Less individualised assistance

➡️ Self-Service Car Wash

Customers wash their own automobiles using your equipment. Coin-operated or card-operated bays.

Pros:

✅ Minimal labour expenses

✅ Perfect for drivers on a tight budget and car enthusiasts

✅ Multiple spaces are simple to maintain

Cons:

❌ Depends mostly on the integrity of the consumer and appropriate usage

❌ Can look messy if not monitored

❌ Restricted income per client

➡️ Mobile Car Wash

You deliver the service to the client's residence, place of employment, or parking lot.

Pros:

✅ Minimal startup expenses

✅ Adaptable locations and schedules

✅ Excellent for high-end, environmentally friendly detailing services

Cons:

❌ Depending on the weather

❌ Taking a lot of time (limited number of cars per day)

❌ Fuel and travel expenses might reduce earnings.

Step 3: Choose a Suitable Location

If you do not want to start a mobile car business, then you have to pay attention to the location.

High-traffic regions are ideal; consider locations close to:

In order to make your service a convenient stop rather than a unique journey, you want to be somewhere customers frequently visit.

Keep in mind that accessibility is essential because you'll need a lot of space for drying bays, cars in line, and entry/exit points.

Also, check local council zoning and environmental regulations. Some locations can have restrictions on wastewater disposal, noise levels, or water use.

Step 4: Register Your Business

Now that you've researched other car washing businesses and seen how and what to do, it's time to tackle the laws, paperwork, and regulations.

1. Choose a Business Structure

Start by determining which structure best suits your goals:

➡️ Sole Trader - Simple and cost-effective, but you are personally liable for any debts.

➡️ Partnership - Ideal if you're starting a business with someone else and want to share profits and obligations.

➡️ Company - More complex, but with reduced liability and potential tax benefits.

💡ProTip

If you decide on a company structure, you can easily realise it with the help of ANNA Money!

On our platform, you can check if the name you want is available and register the company for a $288 one-off fee.

2. Register with ASIC

If you decide to operate as a company, you must register with the Australian Securities and Investments Commission (ASIC) or let ANNA handle that for you.

This way, you will get a unique ACN (Australian Company Number).

If you decide to do business as a sole trader or partnership, the rules are different.

If you do business under your own name (in the case of a sole trader structure) or under your and your partner's name (in the case of a partnership structure), then you do not have to register your business with ASIC. You have to do that only if you do business under different names.

3. Get an ABN and TFN

It doesn't matter which business structure you decide on; you will need an ABN and TFN in order to invoice customers and handle taxes.

➡️ Sole Trader - As a sole trader, you use your own TFN for tax purposes. You don't need a separate TFN for your business. However, in order to function and conduct business with other businesses or government organisations, you must normally apply for an Australian Business Number.

➡️ Partnerships, Companies, and Trusts - These structures are different legal entities with their own TFN. You also require an ABN for the business entity. Typically, you can apply for the TFN while applying for the ABN.

How To Apply for ABN?

Follow these steps to apply for ABN:
✅ Provide personal information (name, date of birth, address), business information (structure, start date, activities, expected turnover), and evidence of identity (passport, driver's license, etc.).

✅ Apply on the Australian Business Register (ABR) website or through the Australian Government Business Registration Service.

✅ If you have a myGovID linked to the ATO, applying through myGovID is the quickest option.

✅ If you choose a company structure, you can apply for an ABN and an Australian Company Number (ACN) simultaneously.

If your application is successful, you will receive an ABN immediately. If not, the process can take up to 20 business days.

💡ProTip

With ANNA Money, you can get an ABN in a few clicks. All you need to do:

How to Apply for TFN?

If you are an Australian citizen with an Australian passport, this process is pretty straightforward: You can apply for a TFN online using myID and receive it immediately, granting you access to MyGov and ATO services.

To be eligible:
➡️ You must be 15 years or older.

➡️ Have an Australian passport (up to three years expired is fine).

➡️ Become an Australian citizen (via birth or citizenship certificate).

➡️ Have at least one other Australian ID (e.g., driver's license or Medicare card).

Steps to Apply:
✅ Create Strong myID.

✅ Download myID app (Apple App Store or Google Play).

✅ Enter your name, date of birth, and email (it must match your myGov email address).

✅ Verify your passport and one additional ID (e.g., driver's license or Medicare card).

✅ Take a short selfie to verify your identity.

✅ Visit the TFN application page.

✅ Review and accept the terms and conditions.

✅ Choose Continue with Digital ID.

✅ Log in or establish a myGov account, then link your myID.

✅ Complete and submit your TFN application.

Step 5: Focus on Sustainability

You can only assume how much water your business will consume, so it's important to plan operations in an eco-friendly manner from the very start.

This not only reduces your environmental impact, but it also attracts environmentally conscious customers who appreciate sustainable methods.

➡️ Use Water-Saving Technology

Install water recycling and reuse technologies, such as reclaim units and high-pressure nozzles. These greatly minimise water consumption and save utility expenditures.

➡️ Proper Waste Management

Ensure that all wastewater is treated before entering stormwater drains. To comply with local environmental legislation, use appropriate drainage systems and oil-water separators.

➡️ Promote Eco-Friendly Practices

Use biodegradable soaps and nontoxic cleaning products. Customers who are concerned about the environment are more inclined to choose a business that shares their beliefs.

Conclusion

There is no reason to fail if you can identify and give what is missing in your area.

As long as you choose the correct location, understand your target market, and operate in an eco-friendly and legally compliant manner, success is easy to reach.

And with platforms like ANNA Money, you don't have to do it alone.

From quick ABN registration to simplified tax management and smart payment solutions, ANNA helps you start and manage your car washing business!

How Can Anna Money Help You Start a Car Wash Business in Australia in 2025?

ANNA Money is an all-in-one business tool, so that in addition to registering a company and getting an ABN, you can use many more features that can help you run your business more easily:

⭐ Centralised Document Storage - Keep your personal information confidential by using a separate address for any important work communications.

⭐ Comprehensive Tax Management - With ANNA Money, you can stay on top of your tax reporting and optimise your tax bill. Receive a personalised tax calendar and never miss another deadline.

⭐ Business Account - Open an Australian business account in only a few minutes. All you need is any of your IDs in hand.

⭐ Virtual Business Debit Cards - After opening a business account, you can immediately receive and make payments with a virtual card.

⭐ Online Payment Solutions - Get a personalised webpage with a payment link to send directly to your consumers or embed it in your platforms to effortlessly accept payments online.

⭐ Pay With Cash - Easily pay with cash at thousands of PayPoint locations across the country.

⭐ Smart Receipt Scanner - Take a photo of a receipt, and it will be automatically linked to a transaction in your business account. It is then classified and used to determine your taxes.

⭐ Pots - Pots automatically set aside a percentage of your business's profits to cover future tax bills.

Sign up today and start your car washing business more easily in 2025!