Reviewed and revised — 12 September 2026. This article has been updated to correct unsupported claims and reflect the current enquiry-based offer. Its original publication date and URL are retained.

A consignment business sells goods under an arrangement with their owner. Before accepting stock, make clear who owns it, who can make decisions and how the proceeds and costs are shared.

Choose a workable scope

Start with categories you can assess, store and fulfil reliably. Consider condition testing, authenticity questions, packing, returns and the likely effort per item. A high asking value does not establish a profitable transaction.

Write an acceptance policy covering unsuitable goods, missing information and ownership questions. Decide whether you will offer local collection, shipping or both.

Check registration and obligations

Choose the business structure and registrations appropriate to your circumstances. Licensing requirements vary by activity and location; use business.gov.au and ABLIS to identify the relevant requirements.

GST registration generally uses a A$75,000 GST-turnover threshold, or A$150,000 for non-profit organisations, with other rules and exceptions. Turnover is not simply profit. Use the ATO registration guidance to assess the actual position.

Correction: the earlier article incorrectly claimed a general A$10,000 consignor-payment trigger for TPAR. That rule is withdrawn. TPAR applies to specified reporting circumstances, not consignment payments automatically. Check the ATO reporting-system guidance .

Agree the commercial terms

Specify commission basis, other deductions, discount authority, consignment period, payment timing and handling of refunds, damage and unsold goods. Have the agreement reviewed for your actual arrangement. Do not assume an example commission percentage is an industry standard.

Build the intake-to-sale record

Assign each item an ID. Retain condition photographs, the agreed terms, initial price evidence and location. Map all marketplace listings to the same record and keep available, held and sold states distinguishable.

Plan settlement and reporting

Reconcile retained transactions, refunds and verified payments. GST treatment can depend on the agency arrangement; it is not universally “GST on commission only”. Discuss the structure with your accountant using the ATO’s agency ruling .

Run a small operational trial

Follow representative items through listing, a price decision, a sale and an exception such as a return. Measure the work and costs. Use those results to decide what to automate and how much stock to accept next.

Software can organise the records. It cannot itself establish licensing, tax compliance or demand for the business.

Enquire about a TurnGoods listing review . We will confirm the scope and current availability before any work is agreed.