New benchmarks for small businesses to measure their strength in the market
The ATO has released updated benchmark data drawn from over 1.5 million small businesses around the country to “help small businesses across the country . . . gauge the strength of their business and keep an eye on their competition”.
Updated benchmarks for more than 100 industries are now available for the following categories:
- Accommodation and food;
- Building and construction trade services;
- Education, training, recreation and support services;
- Health care and personal services;
- Automotive electrical services;
- Machinery and equipment repair and maintenance;
- Architectural services;
- Veterinary services;
- Retail trade; and
- Transport, postal and warehousing.
The benchmarks are one of the tools the ATO uses to crack down on the black economy, along with data matching and referrals from the community.
Mr Holt suggests that businesses operating outside the benchmarks may trigger a red flag for businesses that ATO suspects could be engaging in the black economy.
The frequent red flag is a business reporting minimal profit while the business owner seems to be maintaining a lifestyle far exceeding their personal income.
As a registered tax professional in Verus, it’s recommended to have a chat with us about where your business sits in comparison with ATO’s benchmarks. We might have some advice about steps you can take to improve your performance. Call us today and be rest assured that our information is accurate and right on the dollar.