I think I can add to this
A friend of mine does the occasional dog minding at his flat and has been doing so for 3 years. He does not run a business, but gets the bookings through an agency, a totally different thing
The home pet minding regulations in Vic are very clear.
It is necessary to talk to the Council about this first so that they can come out to inspect the flat , and also for the minder to pay for a multi dog permit if there should be more than one dog.
Also the policy of the OC needs to be pet friendly, which it is where he lives and many own pets in his block. He has done all this and has full compliance.
He is meticulous about the dog he will mind and meets them first to ensure that they are quiet and friendly. Most of his neighbours enjoy meeting them except for one who is an animal hater (and people hater for that matter 🙂 ) but he is always outvoted.
btw insurance is partly the responsibility of the agency and the minder only.
Hope this clarifies things a bit