Businesses in this industry
Businesses in this industry provide concrete services for the construction of buildings and other structures, for example, footpaths, foundations, driveways, and single and multi-storey buildings.
What are performance benchmarks
Performance benchmarks use information reported on tax returns for the 2021–22 financial year and are updated each year. This is the most current data.
The benchmarks show ranges of business income to business expenses. Use these benchmarks to compare your performance against similar businesses.
Key benchmark range
Total expenses to turnover is the key benchmark range for this industry. It is the most accurate when predicting business turnover.
You should fall within the key benchmark range for your annual turnover. If you fall outside the range for your industry, your business may have room to improve.
Check that you have reported all income and accounted for any trading stock used for private purposes. Some businesses can use accepted amounts as estimates for the value of trading stock used for private purposes.
2021–22 benchmarks
|
Annual turnover range |
$50,000 – $200,000 |
$200,001 – $500,000 |
More than $500,000 |
|---|---|---|---|
|
'Total expenses' divided by 'Annual turnover' |
39% to 63% |
66% to 80% |
78% to 88% |
|
Average total expenses |
51% |
73% |
83% |
Other benchmarks
Not all expenses are reported by every business. Only use this information as a guide if it applies to your business.
|
Annual turnover range |
$50,000 – $200,000 |
$200,001 – $500,000 |
More than $500,000 |
|---|---|---|---|
|
‘Labour’ divided by ‘Annual turnover’ |
19% to 32% |
19% to 30% |
22% to 34% |
|
'Motor vehicle expenses' divided by 'Annual turnover' |
7% to 11% |
4% to 7% |
3% to 5% |
For benchmarks for previous years, see Small business benchmarksExternal Link.
Input benchmarks
Use the input benchmarks to calculate the expected income based on the labour and materials used.
They apply to concreters who:
- work directly with household customers
- are responsible for purchasing their own materials.
The input benchmarks have been developed in consultation with the:
- Concrete Placers Association of NSW
- Concreting Industry Association of Queensland
- Master Concreters Association of Victoria.
They represent the industry norm. Consider your own personal circumstances when using the benchmarks to assess your situation.
These benchmarks are current as at April 2015.
To give feedback on the usefulness of these input benchmarks, email us at BusinessSegmentPublishing@ato.gov.au.
Input benchmark guide
You can use this benchmark to compare and check your business performance to the concreting industry average.
All dollar amounts include GST.
|
Coverage rate for steel mesh (square metres) (using 14 square metre sheet) |
12 |
|
Coverage rate for one cubic metre of concrete at 100mm thick (square metres)
|
10 |
|
Cost of materials as a percentage of price charged to customer |
50 to 60 |
|
Average job size (square metres) (for example, driveway, plain slab) |
70 |
|
Days to complete average job (including one day for excavation) – 2 tradespeople |
3 |
|
Days to complete average job (including one day for excavation) – 3 tradespeople |
4 |
|
Price charged per square metre – plain concrete $50 to $55 with additional charges for coloured, stamped or stencilled |
$50 to $70 |
Sales turnover
Use this benchmark to:
- estimate your income
- compare your income against the concreting industry average
- check that your records accurately reflect your income.
Remember:
- All dollar amounts are GST-inclusive.
- The amount of ready-mix and mix-on-site concrete used can vary depending on load bearing requirements and location.
|
Income guide |
2 tradespeople |
3 tradespeople |
|---|---|---|
|
Number of sheets of steel mesh used per year |
425 |
641 |
|
Amount of concrete used per year (cubic metres) |
511 |
770 |
|
Square metres completed per year |
5,110 |
7,700 |
|
Price per square metre |
$50 to $70 |
$50 to $70 |
|
Sales turnover range (labour and materials) |
$255,500 to $357,700 |
$385,000 to $539,000 |
|
Average labour charge per day |
$200 to $300 per tradesperson |
$200 to $300 per tradesperson |
|
Average job size (square metres) |
70 |
70 |
|
Jobs completed per year |
73 |
110 |
|
Days to complete average job |
3 |
2 |
|
Days worked per year |
220 |
220 |
Concreting services examples
This example shows what to do if you do not understand why your income is outside the benchmarks.
Example: Income below the benchmarks
Kevin and Joe run a concreting business. They work on household jobs only, providing both plain and stencilled concrete.
Going through statements from their suppliers, Kevin estimates that they have purchased 492 cubic metres of concrete during the year. Using the benchmark concrete coverage rate and the average benchmark price per square metre, Kevin estimates a total income of $295,200 for the year.
Kevin and Joe's records only show income of $186,700, which is well below the benchmarks. Kevin can't see any reason why their performance would be so far outside the benchmark so he contacts his tax agent for advice on record keeping.
End of exampleThis example shows how to work out if your income is within the benchmarks.
Example: Income within the benchmarks
Richard runs a concreting business with one employee doing basic domestic jobs. His records show that he purchased 450 standard sheets of steel mesh in the year.
Using the benchmark coverage rate, Richard should have laid approximately 5,400 square metres of concrete.
Using the benchmark average price per square metre, Richard's sales should be around $324,000.
Richard's records show reported income of $320,000, which is within the benchmarks. He is happy with his record keeping.
End of exampleThis example shows a way to work out why your income is outside the benchmarks.
Example: Income less than expected
David and Harold are partners in a concreting business. Going through their invoices, they estimate that they have laid 3,500 square metres of concrete during the year.
Using the benchmark average price per square metre, David and Harold estimate their income as $210,000 for the year.
Using the benchmarks on the number of days to complete an average job, David and Harold estimate that they worked a total of 150 days.
They compare their results to the benchmarks. It has been a busy year and David is concerned that their figures are incorrect. He reviews his diary and quote book and finds 60 days of work where he received cash payments and used the quote as an invoice. This is an additional $84,000 in income and 1,400 square metres of concrete laid.
Recalculating their figures, David and Harold have laid 4,900 square metres of concrete and earned income of $294,000 for the year. This is within the benchmarks.
David and Harold review their record-keeping practices to make sure they have the right paperwork when preparing future business activity statements and income tax returns.
End of example