Compare your small business performance with industry benchmarks

Are you a sole trader or small business owner? Use our small business benchmarks to understand how your business is tracking compared to others in your industry.

What are the small business benchmarks?

Small business benchmarks this opens in a new window  give you a quick way to compare your performance with similar businesses, so you can easily tell if you’re operating below, above or within the usual range. They’re based on average expenses from income tax returns, which means they give you a good sense of what’s typical in your industry. We’ve recently published the 2023–24 small business benchmarks this opens in a new window  on our website.

There are two simple ways to compare your performance this opens in a new window :

• using the Business performance check tool in the ATO app. This is completely free and anonymous – we don’t collect any personal information about your business.

• calculate it manually this opens in a new window  using the formula on our website.

Understanding your benchmark results

Benchmarks are a useful way to check how your business is tracking and pick up on areas to improve.

If you're above this opens in a new window  the key benchmark range for your industry, your expenses are high relative to your sales. This may indicate:

• your sales are not fully recorded

• your rent or labour costs are high compared to the number of sales

• your mark-up is lower than your competitors.

If you’re below this opens in a new window  the key benchmark range for your industry, your expenses are low relative to sales. This may indicate:

• some expenses may have not been recorded

• your mark-up is higher than your competitors

• your business is more efficient.

If your expenses fall outside the benchmark range for your industry, it’s a good idea to check for any errors in your records or tax return. But keep in mind that being outside the benchmarks doesn’t always mean something is wrong.

If you have found an error and need to amend your tax return, visit Fix a mistake or amend a return on our website this opens in a new window .

If your business sits within the benchmark range for your industry, there’s nothing you need to do. You can simply use the benchmarks as a guide to help you check and compare your costs.

If you’re looking for free courses and other tools to help your business grow, visit Essentials to strengthen your small business this opens in a new window .