How Much Does It Cost To Start a Courier Business in 2025?

It’s 2025, and the delivery industry is booming. And if you’re looking for a flexible, low-barrier way to work for yourself, starting a courier business is an excellent option.

But before you kickstart your journey, you’ll want to know how much does it cost to start a courier business, and what kind of expenses to expect upfront. From vehicle setup and insurance to registration and marketing, we will explore everything you need to know to help you plan confidently and get your business off to a great start.

Vehicle costs: Buy or lease?

Your vehicle is the mainstay of your courier business. And it’s usually your biggest investment. The type of vehicle you choose and how you acquire it (buy vs lease) will significantly affect your startup budget, so let’s break down your options.

Buying a vehicle

If you’re aiming to own your vehicle outright, here’s what you can expect:

• Used van or ute: $10,000–$25,000
  This is a great option for beginners or those on a tighter budget. Look for something reliable, fuel-efficient and suited to the kind of deliveries you’ll be doing (e.g. bulky vs small parcels).
• New commercial van: $30,000–$60,000+
  A brand-new vehicle can mean fewer maintenance headaches. But, you can also expect a higher upfront spend and potential depreciation.

Professional tip: buying a well-maintained van is often the most cost-effective option for new courier operators. Just make sure it’s roadworthy and has enough cargo space for your typical load.

Leasing a vehicle

Maybe you prefer to keep hold of some cash upfront? In this case, leasing might be a more manageable option for you.

• Lease costs: $800–$1,500/month

This cost can change based on the type of vehicle, lease length, and inclusions such as maintenance, insurance, etc. Leasing often comes with fewer upfront costs, as well as potential tax benefits. But make sure you factor in mileage limits and long-term costs.

Other vehicle-related costs

Keep in mind too that there are extra fees that come with getting your vehicle road-ready, such as:

• Registration transfer: $100–$250
• Stamp duty: $200–$800 (varies by state and vehicle value)
• Roadworthy inspections: $100–$400
• Number plates or custom rego: Optional, but may cost $150–$500

WA-specific tip: In Western Australia, registering a commercial vehicle often requires a roadworthy inspection. Plus, you’ll need to pay stamp duty and transfer fees when buying a used vehicle. These extra costs can add $500–$1,500 upfront. So be sure to factor them into your budget.

Insurance: A must-have from day one

As a courier, you’re constantly on the road and carrying high-value items. This can put you at risk of accidents, theft or damage claims. The right insurance can keep you protected, and it’s often mandatory for courier platforms or contracts.

Let’s take a look at the key types of insurance to consider:

• Commercial motor vehicle insurance ($1,200–$3,000/year): Covers your work vehicle for accidents, theft, or damage.
• Goods in transit insurance ($500–$1,500/year): Protects the items you’re transporting, which is often a requirement for jobs involving high-value goods.
• Public liability insurance ($400–$1,200/year): Covers you in case someone is injured or property is damaged while you’re on the job.
• Income protection insurance ($1,000–$2,500/year): Helps cover your earnings if you can’t work due to injury or illness.

Understanding which specific policies you need can be challenging. GSK Insurance Brokers can make this much easier for you. We help tailor the right package based on your vehicle, delivery type, and the clients you’re working with This gives you confidence that you’re fully protected without paying for unnecessary cover.

Fuel and maintenance

While these are ongoing costs, it’s a good idea to factor them into your budget from day one. This is especially important if you’re planning to cover long distances or take on daily delivery routes.

Here’s what you can expect:

• • Fuel (monthly): $500–$1,000 depending on your routes, vehicle type, and how often you’re on the road.
  • Scheduled servicing: $300–$600 every 10,000 km to keep your vehicle in a reliable condition.
  • Tyres, brakes, wear-and-tear: $200–$400 per quarter for basic upkeep.

Licensing and business setup costs

Before you hit the road with your courier business in WA or anywhere else in Australia, make sure you’ve got all your registrations and licences sorted to keep things legal and running smoothly.

Startup admin costs:

• Australian Business Number (ABN) registration: Free
• Business name registration: $42 (1 year) or $98 (3 years)
• WA driver’s licence upgrade (e.g., to Light Rigid if needed): $150–$250
• Vehicle registration (WA): $400–$800 annually for commercial use

Tools and equipment

You definitely don’t need to go overboard on gear. But there are a few basic tools that can make life easier and keep your deliveries protected. These include:

• Trolley or dolly: $100–$300
• Cargo straps or netting: $50–$150
• Hi-vis gear and PPE: $50–$100
• Phone mount and charger: $50–$100
• Mobile data plan: $30–$80/month

Branding and marketing

If you’re planning to go solo and win your own clients, rather than relying on courier apps or gig platforms, branding and marketing can make a major difference. You don’t need a huge budget to get started.

But doing a bit of market research first can help you understand your local competitors, pricing expectations, and the type of clients you want to attract. From there, a few smart investments can help you look more professional and attract regular work.

Simple ways to market yourself:

• Magnetic vehicle signage: $100–$300—This acts as a clear, well-designed sign on your vehicle that builds trust and makes you look legit on the road.
• Basic website and domain: $200–$500 to start—A simple website that makes clear your services, contact details and some testimonials can give you a competitive edge.
• Business cards or flyers: $50–$100—Very handy for networking and local drop-offs, especially if you’re targeting local businesses.
• Social media advertising: $100–$300/month—A small monthly ad spend on Facebook or Instagram can help you reach local clients looking for fast, reliable delivery services.

Let’s bring it all together

Now that you’ve seen the key startup costs to consider, here’s a quick snapshot of three realistic budget levels to help you plan ahead.

Please note that while helpful, these figures are estimates and can vary depending on the scale of your business, whether you’re working solo, and what courier services you plan to offer.

Know your start-up costs. Cover your real risks

When you’re calculating how much it costs to start a courier business, insurance might feel like just another number on the list. But it’s also one of the smartest early investments you can make, as it protects your income, your vehicle, and the future of your business.

​​At GSK Insurance, we take the time to understand your business, so we can guide you through exactly what cover you need to stay compliant, manage risk, and keep your costs in check.

September 25, 2025

By Graham Knight

Founder and Managing Director of GSK Insurance (established in 1981). Graham draws upon more than 50 years’ experience in the insurance industry, working in both insurance and broking across various private, public and government sectors in Australia.