ATO BENCHMARKS, 2023-24
Australian small business benchmarks by industry
The ATO small business benchmarks show what share of turnover similar businesses spend, industry by industry, from 2023-24 tax returns. These 96 pages take the band closest to a $500,000 to $3,000,000 business, show total expenses and, where published, cost of sales, and work out what is left for cash, payroll and the owner.
By Ivanka Menken, Strategic Mentor · Last updated · Figures from the Australian Taxation Office, 96 industries
What are the ATO small business benchmarks?
Each year the Australian Taxation Office works out, from tax returns, what share of turnover businesses in about a hundred consumer-facing industries spend. It publishes a range for each turnover band, covering the 30% of businesses around the industry average, after removing outliers. The ATO uses them to check that businesses report all their income; you can use them to see where your own business sits.
The open data file on data.gov.au holds two ratios: total expenses to turnover for every industry, and cost of sales to turnover where it is a key benchmark, mostly in retail and food. Turnover excludes GST. Cost of sales excludes wages. Total expenses include staff wages, rent, interest and depreciation, and leave out payments to associated persons such as family members.
How do you read a benchmark page?
Find the band your turnover falls in; each page names the band it uses and shows the others in a table. One minus cost of sales is a gross margin before wages. One minus total expenses is what is left before the owner, family members and tax are paid. Midpoints, dollar examples, the 5% price arithmetic and the comparisons with other industries are calculated from the ATO ranges, and say so.
4 industries in the file have no page, because their closest band starts below $200,000 and mostly describes businesses far smaller than the founders this site is for.
Why does Ivanka Menken publish these?
Because the chain she sees in growing founder businesses starts with price: you compete on price, so margins are thin; growth on thin margins eats cash, so payroll becomes a monthly fear, and that fear drains your confidence. A benchmark shows how thin your margin is next to businesses like yours. It is a starting point for a decision, not financial advice; your accountant does the accounts.
Which industries are covered?
Grouped by ANZSIC division. The grouping is ours; each card shows the ATO band closest to $500,000 to $3,000,000.
96 industries shown
ACCOMMODATION AND FOOD SERVICES
- Catering servicesHigh band: more than $600,000Total expenses 81% to 91%Gross margin before wages 59% to 69%
- Chicken shopsHigh band: more than $575,000Total expenses 85% to 93%Gross margin before wages 52% to 60%
- Coffee shopsHigh band: more than $600,000Total expenses 86% to 93%Gross margin before wages 62% to 67%
- Fish and chips shopsHigh band: more than $500,000Total expenses 81% to 90%Gross margin before wages 50% to 56%
- Kebab shopsHigh band: more than $300,000Total expenses 84% to 91%Gross margin before wages 51% to 57%
- Pubs, taverns and barsMedium band: $750,001 to $2,500,000Total expenses 86% to 93%Gross margin before wages 59% to 67%
- RestaurantsMedium band: $500,001 to $2,000,000Total expenses 84% to 93%Gross margin before wages 62% to 68%
- Takeaway food servicesHigh band: more than $600,000Total expenses 84% to 93%Gross margin before wages 59% to 65%
- Takeaway pizza shopsHigh band: more than $600,000Total expenses 87% to 94%Gross margin before wages 59% to 66%
ADMINISTRATIVE AND SUPPORT SERVICES
ARTS AND RECREATION SERVICES
CONSTRUCTION
- Air conditioning, refrigeration and heating servicesHigh band: more than $600,000Total expenses 79% to 89%
- Blocklaying servicesHigh band: more than $500,000Total expenses 78% to 88%
- Bricklaying servicesHigh band: more than $350,000Total expenses 70% to 84%
- Carpentry servicesHigh band: more than $400,000Total expenses 76% to 87%
- Carpet laying servicesHigh band: more than $250,000Total expenses 60% to 79%
- Cement renderingHigh band: more than $400,000Total expenses 75% to 89%
- Concreting servicesHigh band: more than $500,000Total expenses 76% to 87%
- Electrical servicesHigh band: more than $500,000Total expenses 75% to 86%
- Fence constructionHigh band: more than $400,000Total expenses 75% to 85%
- Fire and security alarm installationHigh band: more than $600,000Total expenses 76% to 87%
- Floor and wall tiling servicesHigh band: more than $600,000Total expenses 79% to 90%
- Glazing servicesHigh band: more than $600,000Total expenses 77% to 88%
- Landscape constructionHigh band: more than $500,000Total expenses 76% to 86%
- Painting servicesHigh band: more than $600,000Total expenses 74% to 86%
- Plastering and ceiling servicesHigh band: more than $1,000,000Total expenses 84% to 93%
- Plumbing servicesHigh band: more than $600,000Total expenses 75% to 86%
- Roofing, roof tiling and gutteringHigh band: more than $900,000Total expenses 80% to 89%
- Timber floor sandingHigh band: more than $200,000Total expenses 59% to 78%
EDUCATION AND TRAINING
HEALTH CARE AND SOCIAL ASSISTANCE
- Child care servicesHigh band: more than $600,000Total expenses 79% to 88%
- Chiropractic and osteopathic servicesHigh band: more than $600,000Total expenses 67% to 82%
- Dental specialistsHigh band: more than $900,000Total expenses 59% to 72%
- General dental practicesHigh band: more than $815,000Total expenses 67% to 80%
- Physiotherapy servicesHigh band: more than $600,000Total expenses 73% to 84%
MANUFACTURING
- Bakeries and hot bread shopsHigh band: more than $750,000Total expenses 82% to 90%Gross margin before wages 64% to 71%
- Cabinet makersHigh band: more than $900,000Total expenses 82% to 90%
- Cake shops and patisseriesHigh band: more than $600,000Total expenses 83% to 91%Gross margin before wages 63% to 69%
- PrintingHigh band: more than $500,000Total expenses 80% to 89%Gross margin before wages 54% to 67%
- Printing support servicesHigh band: more than $900,000Total expenses 81% to 90%
OTHER SERVICES
- Automotive electrical servicesHigh band: more than $750,000Total expenses 79% to 87%Gross margin before wages 54% to 63%
- Beauty servicesHigh band: more than $400,000Total expenses 77% to 88%
- Domestic appliance repair and maintenanceHigh band: more than $600,000Total expenses 77% to 88%
- HairdressersHigh band: more than $300,000Total expenses 75% to 86%
- Laundry and dry-cleaning servicesHigh band: more than $600,000Total expenses 75% to 87%
- Machinery and equipment repairs and maintenanceHigh band: more than $600,000Total expenses 77% to 87%
- Panel beating and smash repairsHigh band: more than $300,000Total expenses 73% to 86%
PROFESSIONAL, SCIENTIFIC AND TECHNICAL SERVICES
RETAIL TRADE
- Book retailingHigh band: more than $750,000Total expenses 88% to 93%Gross margin before wages 44% to 47%
- Bottle shops and liquor retailingMedium band: $500,001 to $2,000,000Total expenses 90% to 95%Gross margin before wages 23% to 31%
- Clothing retailingHigh band: more than $500,000Total expenses 83% to 91%Gross margin before wages 43% to 52%
- Computer retailingHigh band: more than $600,000Total expenses 82% to 91%Gross margin before wages 35% to 51%
- Confectionery retailingMedium band: more than $250,000Total expenses 81% to 90%Gross margin before wages 47% to 57%
- DelicatessensHigh band: more than $500,000Total expenses 86% to 93%Gross margin before wages 37% to 48%
- Discount and variety storesHigh band: more than $600,000Total expenses 86% to 93%Gross margin before wages 45% to 53%
- Electrical and electronic product retailingMedium band: $750,001 to $2,000,000Total expenses 83% to 92%Gross margin before wages 33% to 46%
- Entertainment media retailingMedium band: more than $350,000Total expenses 76% to 87%Gross margin before wages 44% to 61%
- Floor covering retailingMedium band: $800,001 to $2,000,000Total expenses 85% to 93%Gross margin before wages 40% to 52%
- FloristsHigh band: more than $600,000Total expenses 83% to 91%Gross margin before wages 47% to 55%
- Footwear retailingHigh band: more than $600,000Total expenses 84% to 91%Gross margin before wages 44% to 52%
- Fresh fish and seafood retailingHigh band: more than $1,000,000Total expenses 90% to 94%Gross margin before wages 27% to 37%
- Fresh meat and poultry retailingHigh band: more than $850,000Total expenses 87% to 93%Gross margin before wages 31% to 39%
- Fruit and vegetable retailingHigh band: more than $1,100,000Total expenses 92% to 96%Gross margin before wages 24% to 31%
- Fuel retailingMedium band: $500,001 to $2,000,000Total expenses 91% to 96%Gross margin before wages 19% to 33%
- Furniture retailingHigh band: more than $1,000,000Total expenses 87% to 95%Gross margin before wages 42% to 48%
- Garden supplies retailingHigh band: more than $750,000Total expenses 84% to 92%Gross margin before wages 44% to 54%
- Gift storesHigh band: more than $600,000Total expenses 84% to 92%Gross margin before wages 44% to 52%
- Grocery retailing and convenience storesHigh band: more than $950,000Total expenses 92% to 96%Gross margin before wages 23% to 29%
- Hardware and building supplies retailingHigh band: more than $1,000,000Total expenses 87% to 93%Gross margin before wages 31% to 39%
- Health food retailingHigh band: more than $600,000Total expenses 87% to 94%Gross margin before wages 35% to 43%
- Homewares retailingHigh band: more than $900,000Total expenses 86% to 93%Gross margin before wages 40% to 51%
- Ice cream retailingHigh band: more than $475,000Total expenses 80% to 89%Gross margin before wages 65% to 73%
- Lawn mower retailingHigh band: more than $1,450,000Total expenses 89% to 94%Gross margin before wages 31% to 36%
- Manchester and textile goods retailingHigh band: more than $500,000Total expenses 81% to 90%Gross margin before wages 44% to 54%
- Motor vehicle parts and batteries retailingHigh band: more than $1,250,000Total expenses 86% to 92%Gross margin before wages 36% to 45%
- Musical instrument retailingHigh band: more than $765,000Total expenses 87% to 93%Gross margin before wages 32% to 43%
- New and used car retailingHigh band: more than $1,500,000Total expenses 91% to 96%Gross margin before wages 15% to 24%
- NewsagentsHigh band: more than $1,000,000Total expenses 89% to 95%Gross margin before wages 19% to 45%
- Pets and pet supply retailingHigh band: more than $750,000Total expenses 85% to 93%Gross margin before wages 36% to 46%
- PharmaciesMedium band: $1,500,001 to $3,500,000Total expenses 87% to 93%Gross margin before wages 33% to 37%
- Picture framing retailingHigh band: more than $260,000Total expenses 69% to 84%Gross margin before wages 69% to 74%
- Sports, camping and fishing retailingHigh band: more than $750,000Total expenses 86% to 92%Gross margin before wages 34% to 42%
- Stationery goods retailingHigh band: more than $750,000Total expenses 86% to 93%Gross margin before wages 37% to 48%
- Tobacco retailingHigh band: more than $1,500,000Total expenses 94% to 97%Gross margin before wages 10% to 14%
- Toy and game retailingHigh band: more than $550,000Total expenses 85% to 92%Gross margin before wages 36% to 44%
- Tyre retailingMedium band: $1,000,001 to $2,500,000Total expenses 88% to 93%Gross margin before wages 35% to 42%
- Watch and jewellery retailingHigh band: more than $750,000Total expenses 82% to 91%Gross margin before wages 44% to 56%
TRANSPORT, POSTAL AND WAREHOUSING
- Courier servicesHigh band: more than $300,000Total expenses 76% to 89%
- Delivery servicesHigh band: more than $210,000Total expenses 66% to 82%
- Furniture removalistsHigh band: more than $525,000Total expenses 78% to 89%
- Road freight transport servicesHigh band: more than $600,000Total expenses 78% to 89%
- Towing servicesHigh band: more than $500,000Total expenses 73% to 86%
No page for: Barber and men's hairdressing; Craft shops; Driving schools and instructors; Lawn mowing and garden services. Their closest ATO band starts below $200,000, so it mostly describes businesses far smaller than $500,000.
How do you put your own numbers next to these?
Three free tools, nothing saved or sent.
To read them with someone each fortnight, see Ivanka's 1:1 mentoring.
Where do the figures come from?
Source: Australian Taxation Office, Small Business Benchmarks, 2023-24 data, published at https://data.gov.au/data/dataset/small-business-benchmarks and licensed under Creative Commons Attribution 2.5 Australia (CC BY 2.5 AU), https://creativecommons.org/licenses/by/2.5/au/. Ratios are reproduced as published; the margins, midpoints, dollar examples, groupings and comparisons are calculated by ivankamenken.com. The ATO does not endorse this page.
Not financial or tax advice. Read the ATO's own guidance at https://www.ato.gov.au/businesses-and-organisations/income-deductions-and-concessions/small-business-benchmarks