The ATO has updated its small business benchmarks for 2021-22. These benchmarks help taxpayers compare their business turnover and expenses with other small businesses in the same industry.
Taxpayers can access the benchmarks on the ATO’s website, and then calculate their benchmark using the ATO app ‘Business performance check’ tool.
For example, consider Deb who runs a pizza shop as a sole trader. She would like to track her business against other pizza shop businesses, and see how she can improve.
Deb downloads the ATO app and opens the ‘Business performance check’ tool. She uses this tool to work out the cost of sales to turnover benchmark for her pizza shop. It is within the higher end of the range and above the average for pizza shop businesses.
Deb works out her main supply costs. She then negotiates a better deal to reduce her business expenses and improve profit.
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