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If i have an online retail store, and i register that out of WA, do i need to register that business name in every state of potential customers?

Depends on how your business is structured.

The issue with a sole trader or partnership (what you are looking at) is that to protect your name you have to register in every state compared to a company which is an Australia wide registration.

In terms of business registration being that you are required to register in the places in which you are trading in or trade to, yes.