ATO Benchmarks: How Does Your Business Compare?

One challenge many small business owners face is knowing how their performance stacks up against others in the same industry. To help bridge this gap, the ATO has created a set of benchmarks that provide valuable insights and comparisons for business owners.

These benchmarks are based on information reported by thousands of businesses across Australia. They cover a wide range of industries and look at key ratios such as cost of sales to turnover, labour costs to turnover, and rent to turnover. By comparing your own figures with these benchmarks, you can get a clearer picture of whether your business is performing in line with others, or if there may be areas worth reviewing.

Why does this matter? For business owners, benchmarks are a useful tool for identifying strengths and spotting potential issues before they become bigger problems. They can also help you understand whether your expenses are within a normal range for your industry, or if you might be overspending in certain areas.

From the ATO’s perspective, benchmarks also serve another purpose — they help identify businesses that may not be reporting all their income. If your figures fall well outside the industry averages, it could raise a red flag.

Using benchmarks isn’t about comparing yourself to the competition in a negative way. Instead, it’s about gaining insights, improving efficiency, and making sure your business is on the right track.

Click on the links below to find the benchmarks that apply to your industry and see how your business compares.