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Small business benchmarks and how to use them

Jun 16, 2021

The ATO has a list of small business benchmarks which enable you to compare your business's performance against similar businesses in the same industry. 


These benchmarks are updated annually to reflect the performance of businesses over time. 


The ATO uses these benchmarks and other risk indicators to identify businesses that may be avoiding their tax obligations by not reporting some or all of their income. Information reported in your tax return or activity statements is used by the ATO to compare with the key performance benchmarks for your industry. 

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Tax return benchmarks


Examples of the tax return benchmarks used include the following:

1.   Cost of sales to turnover (excluding labour).

2.   Total expenses to turnover.

3.   Rent to turnover.

4.   Labour to turnover.

5.   Motor vehicle expenses to turnover.


Activity statement benchmarks


Examples of the activity statement benchmarks used include the following:

1.   Non-capital purchases to total sales

2.   GST-free sales to total sales


A-Z benchmark list


The A-Z Benchmark list allows you to select and find details of the key performance benchmarks for each business type and the range within which the ATO would expect your business to sit.


Among the types of businesses included are:

  • Beauty services
  • Cement rendering
  • Delivery services
  • Grocery retailing
  • Landscape construction
  • Physiotherapy services
  • Restaurants
  • Tutoring and coaching
  • Veterinary services


Download the ATO Business Performance Check tool


You can  find the business performance check tool by following these steps:

1.   Download the ATO app from Google Play, the Windows Phone Store or the Apple App Store

2.   Go to Business

3.   Select Business performance check

4.   Have your information ready and enter the figures into the tool

5.  Compare your business performance

 

The personal information you enter isn't recorded and will only be used for completing the tool.

 

If you find that your business does not fall within the benchmark range, email us or phone or friendly team on 02 9899 3044.



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