If you’re a small business owner in Australia, staying on top of your financial health and compliance obligations can be challenging—especially in an evolving digital economy. That’s where the Australian Taxation Office (ATO) small business benchmarks come in. These tools give you a clear view of how your business compares to others in your industry and can flag potential risks before they become problems.
What are ATO small business benchmarks?
The ATO small business benchmarks are performance indicators based on income tax returns and business activity statements from over 1.5 million small businesses. Updated recently with data from the 2022–23 financial year, these benchmarks cover more than 100 industries. They let you compare your business’s income and expenses with those of similar businesses.
The benchmarks are not just helpful for your own assessment—they’re also used by the ATO to identify businesses that might be under-reporting income. Falling outside the benchmark range doesn’t automatically mean something is wrong, but it could trigger a closer look from the ATO. That’s why it’s useful to understand where you sit.
Explore the ATO small business benchmarks.
Why ATO small business benchmarks matter
Here’s how using ATO small business benchmarks can benefit your business:
- Spot inefficiencies – Compare key ratios like cost of goods sold to turnover. Are your expenses higher than the industry average? This could highlight where you’re overspending.
- Improve business performance – Use benchmarks to set financial goals and measure your progress.
- Stay compliant – Aligning your performance with industry norms reduces the risk of drawing unwanted ATO attention.
Using these tools regularly can support both short-term decisions and long-term planning.
Going deeper with the business viability tool
Beyond the ATO small business benchmarks, the ATO also offers a business viability assessment tool that helps you evaluate whether your business is financially sustainable.
The ATO considers a business viable if it’s generating profits, meeting its commitments to creditors, and providing a return to its owners. If you’re not quite there yet, the tool checks whether you’ve got enough reserves or plans in place to stay afloat. This is especially useful if you’re considering growth, investment, or restructuring.
Proactive support for Australian business owners
If you’re unsure how your business stacks up—or if you’re worried you might be outside the ATO small business benchmarks—it’s worth getting a second opinion. We can help review your figures and highlight opportunities to cut costs, boost profits, or reduce compliance risks.
Using publicly available data from the ATO combined with our own financial insight, we can deliver tailored advice to help you:
- Strengthen your cash flow
- Reduce overheads
- Increase tax efficiency
- Minimise audit risk
Final thoughts
The ATO small business benchmarks are more than just numbers—they’re a window into your business’s health and a roadmap for future improvements. Whether you’re growing, struggling, or just curious, using these tools puts you in a stronger position to make confident, informed decisions.
Let us know if you’d like support reviewing your business performance. A quick benchmarking check today could lead to better outcomes tomorrow. Contact us today.