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ATO benchmarks · 2023-24

The number the ATO already has about your business.

For 100 industries, the ATO publishes the expense ratio it expects a business of your size to fall inside - and uses it to decide who to look at more closely. It is public and free, and most business owners have never seen theirs. Find your industry, see the range, and check your own numbers against it without handing over an email address.

What this is, and what it is not.

These are the Australian Taxation Office's own small business benchmarks, drawn from the tax returns and activity statements of businesses in each industry. They describe what is usual: for a given industry at a given size, the range most businesses fall inside.

Sitting outside the range is not a finding against you. It is one of the signals the ATO uses to decide where to look, and plenty of legitimate businesses sit outside theirs in any given year. What it does mean is that being asked to explain becomes more likely - and the time to have that explanation ready is before the letter arrives.

They are also not a measure of whether a business is any good. A business can sit perfectly inside its range and still be going backwards. That is a different conversation, and a more interesting one.

Source: Australian Taxation Office, Small Business Benchmarks, key ratios for the 2023-24 income year, published on data.gov.au under CC BY 2.5 AU and reproduced unaltered. General information only, not tax advice.

Going deeper than the ratios.

The ATO ranges tell you whether you look ordinary. They do not tell you what your wages line should be, what rent your peers pay, or what the top quartile in your industry actually earns per owner. For that we pull a full commercial benchmark report - 180+ industries, and a real analyst comparison against your numbers. Here is what one looks like.

Ask Link Advisors for yours →