Income tax, CGT and entities

Small business benchmarks

Small business benchmarks are ranges published by the ATO that show typical relationships between a small business's figures, such as cost of sales to turnover, for businesses in the same industry. The ATO compares a business's reported figures to the benchmark for its industry, and a business outside the range may be asked to explain. Being outside the range does not mean the return is wrong, and being inside it does not prove it is right. A practice uses the benchmarks as a check before lodging, so that any unusual ratio has a documented reason, such as a different business model, stock changes or a one-off event, ready if the ATO asks.

General information, not tax advice. The rules change, so check the source page above for the current position. Fedix is developed by Tax7 R&D Pty Ltd.