The Australian Taxation Office (ATO) has released its latest small business benchmarks, providing over 100 different industries with average cost of sales and average total expenses. Businesses can see clearly what the relevant benchmarks are for their industry. The benchmark data is drawn from over 1.5 million small businesses around Australia.
Assistant Commissioner Peter Holt advised that businesses should use the benchmarks to gauge the strength of their business and keep an eye on their competition.
Like everything on offer from the ATO, they benefit from these benchmarks as well. The benchmarks also help them identify small businesses that may be doing the wrong thing and not properly reporting some or all of their income. Mr Holt states that the benchmarks are like the red and yellow flags on our beaches, if you stay between the flags then you have less to worry about.
Using the business performance check tool in the ATO app is the quickest and easiest way to work out how a taxpayer compares to the small business benchmarks.
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