Check your small business benchmarks regularly
The ATO has recently updated its small business benchmarks. It has also added two new activity statement benchmark ratios for non-capital purchases and GST-free sales. The ATO uses the benchmarks to identify businesses that it considers may not be reporting some or all of their income. The ATO can also use the benchmarks to quantify income that it considers not reported. According to the ATO, the benchmarks provide the "most accurate predictor of business turnover for each industry".
It recommended that taxpayers review their relevant business benchmarks regularly.
The ATO has published benchmarks for a wide range of industries, including:
- accommodation and food services;
- building and construction trade services;
- education, training, recreation and support services;
- health care and personal services;
- manufacturing;
- professional, scientific and technical services;
- retail trade; and
- transport, postal and warehousing.
