Small Business Benchmarks: A Guide — and a Warning

By Tina Zawila

The Australian Taxation Office (ATO) has just released updated small business benchmarks across 100 industries, offering business owners a tool to compare their financial performance against others in their sector.  On the surface, these benchmarks seem like a helpful guide. However, it’s important to understand what they really signal: if your business falls outside the ATO’s expected range, you may come under closer scrutiny.

The ATO uses these benchmarks to identify businesses that may not be reporting all their income, particularly in industries where cash transactions are common.  While the ATO presents these figures as a resource to “self-assess” your business, the reality is they are primarily a compliance tool.  Falling outside of these averages could increase your risk of review or audit.

Of course, we recommend that you don’t aim simply to "fit in" with the industry average.  Instead, your goal should be to be better than average — not just to avoid unwanted ATO attention, but to build a stronger, more profitable business.  Proactively managing your business performance gives you confidence that you’re on the right track — and that if the ATO does come knocking, you have nothing to fear.

The ATO website and ATO app has a “business performance check tool” where you can enter your data to make comparisons.  However, rather than providing additional data to the ATO, it’s smarter to seek help from a trusted business advisor.

Qualified Chartered Accountants, Tax Agents and Business Advisors can help you review your financials, identify any red flags early, and implement strategies to not only meet but exceed industry standards.

If you would like to better understand your business key performance indicators against your industry benchmarks, or if you’re concerned about how the ATO might view your performance, now is the perfect time to get tailored advice.  

Don’t just aim for average — aim for excellence.

Call our professional team at UHY Haines Norton CQ Pty Ltd today on 07 4972 1300.