Business Guide
How to Start a Pallet Business in Australia
Business models, start-up costs, margins and step-by-step guide to entering the Australian pallet industry.
Market Opportunity
Australia's pallet industry turns over an estimated $2.5B+ annually. The used pallet market is highly fragmented — dominated by hundreds of small regional operators. There is consistent demand from manufacturers, warehouses, retailers and exporters for reliable pallet supply at competitive prices.
CHEP/LOSCAM hold the hire segment, but they do not compete with the buy/sell used pallet market. The independent segment is large and growing.
Business Models
Pallet Recycling & Trading
$30,000–$100,000
Gross margin: 30–60%
Buy used pallets, grade them, repair Grade B/C, resell to businesses. Low barrier to entry. Requires a yard, a ute/truck and grading knowledge.
Pallet Repair & Refurbishment
$20,000–$60,000
Gross margin: 25–50%
Repair incoming Grade C pallets to Grade B or A. Requires repair equipment, timber supply and staff. Can be added to a trading operation.
Pallet Manufacturing
$150,000–$500,000+
Gross margin: 15–35%
Manufacture new pallets from timber. Requires significant equipment investment (nail guns, saws, assembly rigs) and a reliable timber supply. Higher barriers but defensible margins.
Online Marketplace / Broker
$5,000–$20,000
Gross margin: 10–25%
Broker pallet transactions between businesses without holding stock. Lower capital, but requires network and relationships.
Getting Started — Step by Step
- 1 Register your ABN and business name via ASIC. Choose a structure (sole trader, company).
- 2 Secure a yard or premises in an industrial area with truck access.
- 3 Source your initial stock — contact recyclers, manufacturers and warehouses.
- 4 Get a ute, flatbed truck or forklift. A 2T forkforklift is essential for volume operations.
- 5 Set up a simple grading system and quality process.
- 6 List on PalletFinder and Pallet Hubs. Build a customer list via cold outreach to local warehouses.
- 7 As volume grows, hire a labourer and invest in repair equipment.
Licensing & Compliance
- → ABN registration required. GST registration if turnover exceeds $75,000.
- → If manufacturing export pallets, register with DAFF as an "Accredited Property" for ISPM 15 compliance.
- → Forklift operators require a High Risk Work licence (HRW) in all states.
- → Council DA approval may be needed for yard use in some zones — check local regulations.
- → Public liability insurance is essential. Look at $5–$10M cover minimum.
Ready to list your business?
Get in front of buyers and sellers on Pallet Hubs and PalletFinder from day one.