Some do and some do not. Where Australian agencies charge one, it typically runs from nothing up to around A$2,000 and covers account structure, keyword research, ad writing and conversion tracking. Scalepoint charges no setup fee for Google Ads: the build is part of the A$990/month + ad spend, ex GST.
If an agency does charge a setup fee, ask exactly what it buys and whether you keep the campaigns, ads and tracking if you leave. A setup fee for work that stays in the agency’s account is a poor deal.
Conversion tracking is the part that matters most. Without it nobody can tell which keywords bring in calls and forms, so check it is included and tested before ads go live.
This is one part of a bigger picture. How to choose a Google Ads agency in Australia covers fees, ad spend, account ownership, proposals and timelines in one place.