Extract from the ATO Website For most current information search ATO Small Business Benchmarks

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1 Extract from the ATO Website For most current information search ATO Small Business Benchmarks Plumbing services issued 2013 Industry overview Businesses in this industry install, maintain and repair pipe fittings, hot water systems, gas fittings, plumbing, drainage and sewerage systems. Performance benchmarks These performance benchmarks are developed using information reported on income tax returns and activity statements for the year. Performance benchmarks are updated annually. To review a comparison of previous years benchmarks, refer to previous year. These benchmarks show a number of different financial ratios of business income to business expenses, to help businesses compare their performance against similar businesses in an industry. The key benchmark ratio for this industry is total expenses to turnover. This ratio is likely to be the most accurate predictor of business turnover. Businesses operating outside the key benchmark may be contacted by us. During an audit, if a business does not have records to support their reported income and expenses, we may use benchmarks and other information available to assess the profits of the business. End of attention For information about calculating benchmarks, refer to Small business benchmarks. Key benchmark ratio $50,000 $150,000 $150,000 $600,000 More than $600,000 Income tax return Total expenses/turnover 50% 66% 65% 78% 79% 89% Average total expenses 58% 71% 84% Activity statement

2 Non-capital purchases/ total sales 40% 56% 49% 60% 53% 64% Benchmarks are published as a range representing the ratios reported by businesses grouped either side of the average. Publishing benchmarks as a range allows for variations across financial years, regions and business models. The following benchmarks are made available as a guide for businesses to review their performance and business practices against other similar businesses. The following expenses are not reported by every business, so one or more of these benchmarks may not apply to an individual business. Benchmark ratio Income tax return $50,000 $150,000 $150,000 $600,000 More than $600,000 Cost of sales/turnover 24% 36% 31% 40% 34% 43% Labour/turnover 18% 28% 16% 25% 22% 31% Motor vehicle expenses/turnover 7% 10% 4% 6% 3% 4% Last modified: 25 Sep 2013QC 37021

3 Carpentry services issued 2013 Industry overview Businesses in this industry provide carpentry services in the construction, commercial and domestic markets. Activities include house construction, formwork, installation of doors and partitions and renovations. These benchmarks do not apply to cabinet makers. Performance benchmarks These performance benchmarks are developed using information reported on income tax returns and activity statements for the year. Performance benchmarks are updated annually. To review a comparison of previous years benchmarks, refer to previous year. These benchmarks show a number of different financial ratios of business income to business expenses, to help businesses compare their performance against similar businesses in an industry. The key benchmark ratio for this industry is total expenses to turnover. This ratio is likely to be the most accurate predictor of business turnover. Businesses operating outside the key benchmark may be contacted by us. During an audit, if a business does not have records to support their reported income and expenses, we may use benchmarks and other information available to assess the profits of the business. End of attention For information about calculating benchmarks, refer to Small business benchmarks. Key benchmark ratio $50,000 $110,000 $110,000 $400,000 More than $400,000 Income tax return Total expenses/turnover 33% 51% 56% 72% 81% 89% Average total expenses 42% 64% 85% Activity statement Non-capital purchases/ total sales 24% 43% 38% 59% 58% 73%

4 Benchmarks are published as a range representing the ratios reported by businesses grouped either side of the average. Publishing benchmarks as a range allows for variations across financial years, regions and business models. The following benchmarks are made available as a guide for businesses to review their performance and business practices against other similar businesses. The following expenses are not reported by every business, so one or more of these benchmarks may not apply to an individual business. Benchmark ratio Income tax return $50,000 $110,000 $110,000 $400,000 More than $400,000 Cost of sales/turnover 10% 25% 20% 37% 30% 45% Labour/turnover 23% 35% 22% 35% 24% 40% Motor vehicle expenses/turnover 8% 11% 4% 7% 2% 3% Last modified: 25 Sep 2013QC 36937

5 Hairdressers issued 2013 Industry overview Businesses in this industry cut, colour, perm, straighten and style hair. Other services provided may include basic beauty and manicuring services, and the sale of salon products. These benchmarks do not apply to barbers or beauty services. Performance benchmarks These performance benchmarks are developed using information reported on income tax returns and activity statements for the year. Performance benchmarks are updated annually. To review a comparison of previous years benchmarks, refer to previous year. These benchmarks show a number of different financial ratios of business income to business expenses, to help businesses compare their performance against similar businesses in an industry. The key benchmark ratio for this industry is cost of sales to turnover. This ratio is likely to be the most accurate predictor of business turnover. For businesses that do not report cost of sales or only report a small amount, total expenses to turnover can be used to predict turnover. Businesses operating outside the key benchmark may be contacted by us. During an audit, if a business does not have records to support their reported income and expenses, we may use benchmarks and other information available to assess the profits of the business. End of attention For information about calculating benchmarks, refer to Small business benchmarks. Key benchmark ratio $50,000 $150,000 $150,000 $300,000 More than $300,000 Income tax return Cost of sales/turnover 12% 18% 14% 18% 14% 19% Average cost of sales 15% 16% 17% Total expenses/turnover 58% 74% 74% 84% 80% 89% Average total expenses 66% 79% 85%

6 Activity statement Non-capital purchases/ total sales 39% 52% 37% 47% 38% 47% Benchmarks are published as a range representing the ratios reported by businesses grouped either side of the average. Publishing benchmarks as a range allows for variations across financial years, regions and business models. The following benchmarks are made available as a guide for businesses to review their performance and business practices against other similar businesses. The following expenses are not reported by every business, so one or more of these benchmarks may not apply to an individual business. Benchmark ratio Income tax return $50,000 $150,000 $150,000 $300,000 More than $300,000 Labour/turnover 26% 37% 31% 40% 34% 43% Rent/turnover 14% 22% 10% 15% 9% 14% Motor vehicle expenses/turnover 3% 4% 1% 2% 1% Last modified: 25 Sep 2013QC 36988

Industry Benchmarks For Trades

Industry Benchmarks For Trades Air Conditioning, Refrigeration & Heating Services The main activities for businesses in this industry are installation, repair and maintenance of ventilation, air conditioning,