We’ve updated our Small business benchmarks with 2022–23 financial year data.
Released annually, if you’re one of the small businesses included in the 100 industries covered, you can use the benchmarks to compare your performance, including turnover and expenses against others in your industry. This can help you make improvements to your business.
Take Anna for example. Anna is a sole trader and runs a pizza shop. She is curious about how her business is tracking against others in her industry.
By using the benchmarks, Anna can see that:
- her pizza shop’s cost of sales to turnover ratio is 44%, which is within the benchmark range for her business and turnover
- the cost of sales benchmark starts at 37%, showing that some competitors have lower costs.
Anna looked at other suppliers in the market and got a better deal to reduce her business expenses and improve her profits.
The benchmarks also help small businesses to get it right and meet their tax obligations. Businesses with turnover or expenses outside the industry benchmark could be due to mistakes or errors. For example, income not being reported properly, or expenses might be overclaimed.
You can access the benchmarks on our website and via the ATO app’s business performance check tool.
We don’t collect personal information entered by businesses when using our tool. We make the benchmarks available (at no cost) to software providers for inclusion in their small business products.
Your registered tax professional can also help you navigate and gain insight from our benchmarks.