SharePoint Online: Complete Setup Guide for Australian SMBs
For Australian SMBs moving to Microsoft 365, SharePoint Online represents a significant opportunity to modernise document management and collaboration. But between permissions, document libraries, workflows, and integration options, the platform can feel overwhelming for businesses without dedicated IT teams.
The reality is that most Australian small businesses don’t need SharePoint’s full enterprise feature set. What they need is a well-configured foundation that makes document sharing secure, finding files intuitive, and collaboration seamless across their team. This guide provides exactly that: a practical setup approach focused on the features that matter most to SMBs.
Understanding SharePoint Online for Your Business
SharePoint Online is Microsoft’s cloud-based collaboration platform, included with most Microsoft 365 business subscriptions. Unlike traditional file servers or basic cloud storage, SharePoint combines document management with team sites, workflows, and deep integration across the Microsoft 365 ecosystem.
For Australian SMBs, SharePoint Online offers several practical advantages. Your documents are stored in Australian data centres (Sydney and Melbourne), addressing data sovereignty concerns under the Privacy Act 1988. The platform scales with your business—you start with basic document libraries and can progressively adopt features like metadata, workflows, and custom forms as your needs grow. Integration with Teams, Outlook, and OneDrive means your staff work within familiar tools rather than learning entirely new systems.
The key is understanding what SharePoint does well. It excels at structured document management, team collaboration spaces, and controlled access to sensitive business information. It’s less ideal for personal file storage (that’s OneDrive’s role) or replacing specialised systems like accounting software or CRM platforms.
Initial Setup: Getting Your Foundation Right
Your SharePoint setup begins with your Microsoft 365 tenant, which most Australian SMBs already have through subscriptions like Microsoft 365 Business Standard or Business Premium. When you first access SharePoint Online through admin.microsoft.com, you’ll have a default site structure, but proper configuration requires several deliberate steps.
Start by configuring your tenant settings in the SharePoint admin center. Navigate to Settings > Sharing and establish your external sharing policy. For most Australian SMBs, we recommend setting this to “New and existing guests”—allowing controlled sharing with external partners while maintaining security. This prevents accidental public sharing while still enabling collaboration with clients, contractors, or partners.
Next, configure your storage limits and file management settings. By default, SharePoint Online provides 1TB of storage plus 10GB per licensed user. For a 20-person business, that’s 1.2TB of storage—more than sufficient for most SMB needs. However, you should establish retention policies early. Navigate to the Microsoft Purview compliance portal and create a basic retention policy for your business documents. A simple approach: retain all business documents for seven years (meeting Australian tax office requirements) and dispose of temporary files after three years.
Your default site, typically named after your company, serves as your intranet hub. Configure this first by navigating to the site, clicking Settings (gear icon), then Site Contents. You’ll want to customise the homepage with company announcements, quick links to frequently used libraries, and news webparts for company updates. This becomes your digital front door for employees.
Security settings require particular attention for Australian businesses. In the SharePoint admin center, navigate to Policies > Access control and enable “Allow access only from specific IP address locations” if your business has fixed office locations. This adds a layer of protection by preventing access from unexpected locations. Also enable “Sign out inactive users automatically” set to 1 hour—reducing risk from unattended workstations.
Document Libraries: The Core of Your SharePoint System
Document libraries are where your business files actually live. Unlike dumping files into a single shared drive, proper library structure makes finding, managing, and securing documents straightforward.
Create your first library by navigating to your team site, clicking New > Document library. For most Australian SMBs, we recommend starting with these core libraries: Corporate Documents (company policies, templates, procedures), Project Files (organised by client or project), Financial Records (invoices, quotes, financial reports), and HR Documents (employment contracts, training materials).
Each library benefits from well-configured metadata—custom columns that describe your documents. For a Project Files library, create columns for Client Name (choice column with your active clients), Project Status (choice: Active, On Hold, Completed), Document Type (choice: Proposal, Contract, Deliverable, Report), and Review Date (date column). Adding metadata takes 30 seconds per document but makes searching and filtering exponentially faster.
Views transform how your team interacts with documents. In your Project Files library, create a “My Active Projects” view filtered to show only Active status documents where the current user is listed in the Project Manager column. Create a “Documents Needing Review” view showing documents where the Review Date is in the next 14 days. These views appear in the view dropdown and save your team from manually filtering every time they need information.
Versioning is critical for Australian businesses needing audit trails. In each library’s settings, enable versioning with major and minor versions. Set “Keep the following number of major versions” to 50 and “Keep drafts for the following number of major versions” to 10. This provides a safety net when documents are accidentally modified and creates the audit trail compliance frameworks often require.
Permissions and Security: Protecting Your Business Data
SharePoint’s permission system can seem complex, but a clear structure prevents both security gaps and access frustration.
SharePoint permissions work on inheritance. By default, a library inherits permissions from the site, which inherits from the site collection. For most Australian SMBs, this three-tier approach works well: Site Collection permissions (company-wide access), Site permissions (team or department access), and Library/Folder permissions (sensitive information).
Start by defining your permission groups at the site level. Navigate to Site Settings > Site Permissions. Create groups matching your business structure: “All Staff” (read access to general documents), “Management Team” (edit access to corporate documents and read access to financial records), “Finance Department” (edit access to financial documents), and “HR Administrators” (full control of HR documents).
For sensitive documents, break inheritance at the library level. In your HR Documents library, go to Library Settings > Permissions for this document library > Stop Inheriting Permissions. Remove “All Staff” group and grant access only to HR Administrators and members of your senior management. This ensures employee files, salary information, and sensitive HR documents remain properly secured.
External sharing requires particular attention for Australian businesses working with contractors or clients. When you share a document externally, SharePoint creates a guest account tied to that email address. For compliance purposes, regularly audit these guest users through the Microsoft 365 admin center. We recommend quarterly reviews where you remove guest accounts no longer requiring access. This meets Privacy Act principles around only retaining personal information as long as necessary.
Sensitivity labels provide another security layer, especially for businesses in regulated industries. Through the Microsoft Purview compliance portal, create labels like “Internal Only,” “Commercial in Confidence,” and “Public.” When users apply these labels to documents, SharePoint automatically applies encryption or restrictions. For example, a “Commercial in Confidence” label might prevent forwarding, printing, or downloading—useful for tender documents or strategic plans.
Workflows and Automation: Streamlining Your Processes
SharePoint’s workflow capabilities help automate repetitive business processes, but Australian SMBs should start simple and expand gradually.
Power Automate is your primary tool for SharePoint workflows. A practical first workflow: document approval. When a new quote or proposal is uploaded to your Project Files library, automatically send it to the relevant manager for approval. In Power Automate, create a new automated flow triggered by “When a file is created in SharePoint.” Add a condition checking if the Document Type equals “Proposal” or “Quote.” If true, send an approval request to the manager’s email. When approved, update the document’s Status column to “Approved” and notify the original author.
Another valuable workflow handles document reviews. Many Australian businesses need regular policy reviews—OH&S procedures, privacy policies, quality manuals. Create a scheduled flow (runs weekly) that checks your Corporate Documents library for documents where the Review Date is within the next 30 days. For matching documents, send an email to the Document Owner reminding them the review is due. This simple automation ensures compliance documents don’t lapse.
Metadata automation reduces manual work. When a document is uploaded to a specific folder, automatically apply the appropriate metadata. For example, documents uploaded to “Financial Records > 2024 > March” automatically get the Financial Year set to “2023-24” and Period set to “March.” While Power Automate enables this, consider whether your team would benefit from the manual step of choosing metadata—it often improves document categorisation accuracy.
For Australian businesses with external collaboration, create an expiry workflow. When a document is shared with external guests, set an automatic expiry date (90 days is common). Seven days before expiry, send the SharePoint site owner a reminder asking if access should be extended. If no action is taken, the workflow removes external access and notifies relevant parties. This prevents the common problem of external access lingering indefinitely.
Integration with Microsoft 365: Making SharePoint Work Seamlessly
SharePoint’s value multiplies through integration with other Microsoft 365 tools your Australian SMB already uses.
Microsoft Teams is where most integration happens. When you create a Team in Microsoft Teams, SharePoint automatically creates a corresponding team site and document library. Your Teams conversations happen in Teams; your formal documents live in SharePoint. The Files tab in every Teams channel is actually a SharePoint document library. Enable this integration consciously—have conversations in Teams, but move finalized documents to properly organized SharePoint libraries with metadata rather than leaving them buried in channel files.
Outlook integration enables document sharing without email attachments. When composing an email, click Attach > Browse cloud locations > SharePoint. Select your document, and Outlook creates a secure sharing link instead of attaching a copy. The recipient accesses the live document in SharePoint, always seeing the current version. For Australian businesses sending quotes, proposals, or reports, this eliminates version confusion and keeps documents under your control.
OneDrive sync brings SharePoint libraries to your desktop. In any document library, click Sync to download files to your computer while maintaining cloud synchronization. This works well for frequently accessed libraries but shouldn’t be overused—syncing too many libraries slows your computer and defeats SharePoint’s web-based purpose. We recommend syncing only 2-3 actively used libraries per person.
Power BI integration turns SharePoint lists into business dashboards. If you maintain project information or sales data in SharePoint lists, Power BI can connect directly and create visual reports. For example, a project tracking list with budget, timeline, and status information becomes a live dashboard showing project health, budget utilization, and deadline risks. This is particularly valuable for Australian SMBs where a single person might manage multiple projects and needs clear visibility.
Microsoft 365 search now spans SharePoint, Teams, OneDrive, and Outlook. When an employee searches from the Microsoft 365 home page, results include relevant SharePoint documents based on permissions. Improve search effectiveness by ensuring documents have meaningful names and metadata. A document named “Document1.docx” in a folder with no metadata is effectively invisible to search; “Q4-2024-Board-Report.docx” with metadata indicating Document Type: Report, Audience: Board, Quarter: Q4 appears exactly when needed.
Australian-Specific Considerations and Compliance
Operating SharePoint Online in Australia brings specific considerations around data sovereignty, compliance, and business culture.
Your SharePoint data resides in Australian data centres (Sydney and Melbourne regions) as long as your Microsoft 365 tenant was created with Australia as the country. Verify this in the Microsoft 365 admin center under Settings > Org Settings > Organization Profile. Data residency matters for businesses in regulated industries (financial services, health, legal) or those with data sovereignty requirements in client contracts.
Privacy Act 1988 compliance requires attention to how you handle personal information in SharePoint. Employee files, client information, or any document containing personal data should be stored in libraries with appropriate permissions and retention policies. Document your SharePoint information handling in your privacy policy, particularly if you use SharePoint to store customer information. The Australian Information Commissioner’s guidance on cloud computing applies directly to SharePoint deployments.
For businesses required to follow the Essential Eight mitigation strategies (recommended for all Australian businesses by the Australian Cyber Security Centre), configure SharePoint to support several controls. Enable multi-factor authentication for all SharePoint access—configured in the Microsoft 365 admin center, not SharePoint directly. This addresses the Essential Eight’s MFA requirement. Regular application patching is handled by Microsoft for SharePoint Online, giving you one less concern compared to on-premises systems.
Australian financial year considerations influence how you structure document libraries. Rather than calendar year folders, consider financial year folders (FY23-24, FY24-25) for financial documents, project records, and compliance materials. This aligns with how Australian businesses actually operate and makes year-end processes more intuitive.
Business culture in Australian SMBs tends toward informality and direct communication. Your SharePoint structure should reflect this—avoid over-engineering with dozens of nested folders or complex approval workflows that frustrate your team. Australian businesses value practical tools that work, not systems that become IT projects themselves.
Getting Started: Your First 30 Days
Implementing SharePoint effectively requires a staged approach, not attempting everything simultaneously.
Week 1: Foundation Configure tenant settings, create your primary team site, and establish 3-4 core document libraries. Migrate one department’s files (choose a small, tech-savvy group) from your current file server or cloud storage. Configure basic permissions with your primary groups. This week focuses on technical setup while involving only a small pilot group.
Week 2: Refinement Add metadata columns to your libraries based on how your pilot group actually needs to find documents. Create 2-3 useful views per library. Set up versioning and retention policies. Implement one simple workflow—document approval is ideal. The pilot group provides feedback on what works and what needs adjustment.
Week 3: Expansion Roll out SharePoint to your broader team. Conduct a 30-minute training session (in-person or via Teams) showing how to upload, find, and share documents. Emphasize the benefits—finding documents faster, working on files simultaneously, accessing from anywhere. Don’t attempt comprehensive training; focus on daily tasks.
Week 4: Optimization Based on broader usage, refine permissions, add additional metadata, and adjust library structures. Create helpful views based on common team needs. Implement 1-2 additional workflows if clear needs emerge. Document your SharePoint structure and permissions in a simple guide for new employees and future reference.
Cost Considerations for Australian SMBs
SharePoint Online is included in Microsoft 365 Business Standard ($22 AUD per user per month) and Business Premium ($35 AUD per user per month). Most Australian SMBs already have these subscriptions for email and Office applications, making SharePoint a cost-effective addition rather than a separate purchase.
Additional costs arise primarily from additional storage or advanced compliance features. The included 1TB plus 10GB per user covers most SMB needs. If you require additional storage, Microsoft charges $0.34 AUD per GB per month for SharePoint Online storage. For most businesses, careful file management (removing duplicates, archiving old projects) is more cost-effective than purchasing additional storage.
Power Automate flows are included with your Microsoft 365 Business subscriptions, with some limitations. You receive 2,000-10,000 Power Automate actions per user per month (depending on your plan). For typical SMB workflows—document approvals, review reminders, notification automation—this allowance is sufficient. Premium Power Automate plans ($20 AUD per user per month) are only necessary if you need advanced connectors or exceed the included action limits.
Compare SharePoint costs to alternatives. A typical Australian SMB with 20 employees might otherwise use Dropbox Business ($24 AUD per user per month), Box Business ($20 AUD per user per month), or Google Workspace Business Standard ($21 AUD per user per month). SharePoint’s advantage lies in integration—if you’re already using Microsoft 365 for email, Office, and Teams, SharePoint provides document management without additional cost or switching between platforms.
The hidden cost is implementation time. Plan for approximately 40-60 hours of internal time across the first month—technical setup, configuration, migration, training, and refinement. For a business owner or office manager, this might represent $2,000-$3,000 in opportunity cost. However, this is a one-time investment yielding ongoing efficiency improvements.
Next Steps: Moving Forward with SharePoint
Start with a clear business need, not a desire to use SharePoint for its own sake. If your current file server or cloud storage system causes problems—version confusion, access difficulties, compliance concerns—SharePoint solves these. If your current system works adequately, forcing a change wastes time and frustrates your team.
Begin your implementation with the pilot approach outlined above. Choose a small group, implement core features, refine based on feedback, then expand. This approach succeeds far more often than company-wide big-bang deployments.
Remember that SharePoint is a tool, not a project. Configure it to support your business processes, not to showcase every feature. Australian SMBs succeed with SharePoint when they focus on solving specific problems: making documents easier to find, enabling secure external collaboration, creating audit trails for compliance, or eliminating email attachments.
As your business grows, revisit your SharePoint configuration every 6-12 months. Add features progressively—metadata, workflows, integration with other systems—as clear needs emerge. This evolutionary approach builds a SharePoint environment that truly serves your business rather than overwhelming it with unnecessary complexity.
For Australian SMBs ready to modernize document management and collaboration, SharePoint Online provides a practical, scalable platform that grows with your business. With the foundation laid out in this guide, you’ll have a secure, efficient system your team actually uses—not another IT project that quietly gets abandoned.
Need help implementing SharePoint Online for your Australian business? Cloud Geeks provides practical Microsoft 365 consulting for SMBs across Sydney, Melbourne, and Brisbane. We focus on implementations that work, not complex enterprise projects.