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Home businesses do exist, so it's unlikely that they are unable to be set up or to obtain insurance. Difficult though perhaps. Your local council would be able to tell you about the zoning for the property and what could be done. An insurance broker could tell you about insurance. A normal...

Here, is one resource covering hairdressing from home in Queensland. It may not be applicable but may give some ideas about what is required. And one about childcare: http://www.careforkids.com.au/articlesv2/article.asp?ID=62