What Are Small Business Benchmarks?
Small business benchmarks are financial ratios developed to help compare the performance of similar businesses in an industry. They:
- are representative of returns and activity statements in a given industry
- provide guidance on what figures the ATO would typically expect a business in a particular industry to report.
Why the ATO uses Small Business Benchmarks
The Australian Taxation Office uses benchmarks to identify businesses that may be avoiding their tax obligations by not reporting some or all of their income.
What industries do the ATO benchmarks cover?
Benchmarks are published for businesses in more than 100 industries that have turnovers within a number of ranges.
How to avoid problems relating to Small Business Benchmarks
Businesses should ensure they have good record-keeping practices that meet the legal requirements.