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The Tax Office has revealed new financial benchmarks to help small business owners stay in good financial health.
ATO unveils revised SME benchmarks for 100 industries
18 March 2025
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7 minute read
New financial benchmarks have just been released by the Tax Office for over 100 industries to help small business owners “take the pulse of their business.”
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Updated on an annual basis, the benchmarks work to cover 100 industries and over 2 million small businesses around the country, including accommodation and food, building and construction trade services, education, training, recreation and support, healthcare and personal services.
Other industries to be captured by the benchmarks were manufacturing, professional, scientific and technical services, retail trade, as well as transport, postal and warehousing.
ATO assistant commissioner Tony Goding said the benchmark acted as a “health check” and allowed small business owners to compare their performance, including average expenses, against other businesses in the same industry.
“The benchmarks are a valuable tool for small businesses wanting to stay in good financial health. Think of our benchmarks like a routine test you take with your GP each year. These can help small businesses diagnose their strengths or spot the early warning signs,” he said.
“If your numbers are outside of the benchmark range compared to others in your industry it may be time for a closer look at your business plan. Businesses that remain within industry benchmarks are generally less likely to attract the ATO’s attention.”
In combination with the revised benchmark release, the ATO said it wanted to remind SME owners that it took non-compliance with tax seriously and that small businesses avoiding their tax were participating in the “shadow economy.”
Participation in the shadow economy often puts pressure on Australians doing the right thing.
According to analysis from the Tax Office, deliberate show economy behaviours contributed to nearly 60 per cent of the gross small business income tax gap, or around $11.2 billion per annum in missing tax.
Approximately $8.9 billion of this was associated with under-reporting of income and over-claiming of deductions.
“While we never use the benchmarks in isolation, small businesses who fall outside the ATO’s benchmarks are more likely to trigger a closer examination from us to identify if they are making mistakes or deliberately doing the wrong thing,” Goding said.
“The benchmarks are just one of those tools we use to tackle the shadow economy, along with community tip-offs and data matching. It’s all about leveling the playing field for honest businesses who are being undercut by their dishonest competitors that aren’t paying the tax they’re supposed to.”
The ATO said small business owners could access the benchmarks via its website or the ATO app's business performance check tool.
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