What are Small Business Benchmarks?

Small Business Benchmarks have been established by the ATO by using key business ratios for more than 100 different industries.

The ATO use benchmarks to identify businesses that fall outside the average for their industry.

Other indicators the ATO use are :

• Identifying businesses that report net income that appears to be lower than required to support the business operators living expenses

• Identifying businesses with the opportunity for cash economy activity

• Using information from organisations such as centrelink, business trade suppliers and banks

• Reviewing information provided by the community.

The ATO have announced that 100,000 small businesses will receive letters notifying them that their reported income is outside the published benchmarks.

If you have received a letter from the ATO then please contact our office otherwise if ignored you maybe selected for a audit or review.

Benchmark ratio’s can be viewed at www.ato.gov.au/businessbenchmarks