Roofing services, including roof tiling, guttering and metal roofing - issued 2012
Roofing services, including roof tiling, guttering and metal roofing - issued 2012
Businesses in this industry install roofing materials such as tiles, slate and metal. Some businesses may also repair and restore roofing and guttering, and offer plumbing services.
Performance benchmarks
These performance benchmarks are developed using information reported on income tax returns and activity statements for the 2009-10 year. Performance benchmarks are updated annually.
|
To review a comparison of previous years benchmarks, refer to previous year.
|
These benchmarks show a number of different financial ratios of business income to business expenses, to help businesses compare their performance against similar businesses in an industry.
The key benchmark ratio for this industry is labour to turnover. This ratio is likely to be the most accurate predictor of business turnover. For businesses that do not report labour or only report a small amount, total expenses to turnover can be used to predict turnover.
|
Businesses operating outside the key benchmark may be contacted by us.
During an audit, if a business does not have records to support their reported income and expenses, we may use benchmarks and other information available to assess the profits of the business.
|
Key benchmark ratio
|
Annual turnover range
|
$50,000 - $325,000
|
$325,000 - $900,000
|
More than $900,000
|
Income tax return
|
Labour/turnover
|
16% - 30%
|
21% - 32%
|
21% - 31%
|
Average labour
|
29%
|
27%
|
26%
|
Total expenses/turnover
|
45% - 68%
|
74% - 85%
|
85% - 92%
|
Average total expenses
|
57%
|
80%
|
88%
|
Activity statement
|
Non-capital purchases/
total sales
|
32% - 55%
|
49% - 66%
|
65% - 75%
|
Benchmarks are published as a range representing the ratios reported by businesses grouped either side of the average. Publishing benchmarks as a range allows for variations across financial years, regions and business models.
The following benchmarks are made available as a guide for businesses to review their performance and business practices against other similar businesses.
The following expenses are not reported by every business, so one or more of these benchmarks may not apply to an individual business.
Benchmark ratio
|
Annual turnover range
|
Income tax return
|
$50,000 - $325,000
|
$325,000 - $900,000
|
More than $900,000
|
Cost of sales/turnover
|
16% - 35%
|
29% - 46%
|
43% - 52%
|
Motor vehicle expenses/turnover
|
6% - 10%
|
3% - 4%
|
1% - 2%
|
Cost of sales
Cost of anything produced, manufactured, acquired or purchased for either:
- manufacture
- sale or exchange in deriving the gross proceeds
- earnings of the business.
For the purposes of calculating the benchmark, cost of sales excludes labour.
Labour
Salary or wage payments, including contractor payments (amounts exclude GST). Labour does not include payments to associated parties - for example, labour provided by a business owner or business partner.
Total expenses
Total expenses reported on the income tax return less payments to associated parties (amounts exclude GST).
Non-capital purchases
Purchases reported at label G11 on your activity statement. Non-capital purchases include trading stock and normal running expenses, such as:
- stationery and repairs
- equipment rentals
- leases.
Total sales
Total sales reported on activity statements (amounts include GST). This includes all your:
- GST-free sales
- input taxed sales
- taxable sales.
Turnover
Total revenue received from providing goods or services each year, excluding GST.
These input benchmarks have been developed in consultation with the Roofing Tile Association of Australia.
They represent the industry norm and apply to roof tilers who work directly with household customers and are responsible for purchasing their own materials. The main activity for these businesses is the installation of ceramic or concrete tiles, slate or shingles.
These benchmarks are current as at October 2010.
Input benchmark guide
The table below sets out input benchmarks for roof tilers.
You can use these benchmarks to compare and check your business performance to the roofing industry average.
Benchmark guide
|
Coverage rate
(tiles per square metre)
|
concrete tiles
|
10.3
|
terracotta tiles
|
13
|
Installation rate - two tilers
(square metres per day)
|
50 - 60
|
Cost of materials as a percentage of price charged to the customer
|
tiles
|
35 - 40
|
other materials (including sarking and safety railing)
|
10 - 20
|
Typical job size
(square metres)
|
150 - 180
|
Days to complete typical job
|
3
|
Price charged ($) per square metre - supply and install (including ridging and hips but not sarking and safety railing)
|
concrete tiles
|
45 - 65
|
Terracotta tiles
|
60 - 80
|
Note: All dollar amounts include GST.
Input benchmark - sales turnover
You can use these benchmarks to:
- estimate your income
- compare your income against the roofing industry average
- check that your records accurately reflect your income.
Income guide
|
Tiles used per year
|
concrete
|
67,980
|
terracotta
|
85,800
|
Square metres completed per year
|
concrete
|
6,600
|
terracotta
|
6,600
|
Price charged ($) per square metre - supply and install (including ridging and hips but not sarking and safety railing)
|
concrete tiles
|
45 - 65
|
terracotta tiles
|
60 - 80
|
Sales turnover range ($)
(including 10% for materials and scaffolding)
|
653,400 - 1,161,600
|
Typical job size (square metres)
|
180
|
Jobs completed per year
|
73
|
Days to complete average job
|
3
|
Days worked per year
|
220
|
Note: All dollar amounts include GST.
Input benchmark examples
Example 1
Richard runs a roof tiling business with one regular sub-contractor to assist him during busy periods. They work only on household jobs, supplying and installing concrete and terracotta tiles.
On average, they install 60 square metres per day. Richard charges an average price of $60 per square metre plus 10% for materials.
Richard's records show that he has purchased 70,000 concrete and 90,000 terracotta tiles during the year. Using the benchmarks, he estimates that he has tiled a total of 13,720 square metres with income of $905,520.
Richard's records show reported income of $900,000. This is within the benchmarks and accounts for discounts offered to friends. He is happy with his record keeping.
Example 2
Peter runs a roof tiling business with one tradesman. He installs terracotta tiling only.
Over the year they have averaged an installation rate of 50 square metres per day and charged an average of $60 per square metre.
Based on statements from his supplier, Peter has purchased 160,000 terracotta tiles in the year. Using the benchmarks, he estimates that he has tiled 12,307 square metres during the year with income of $812,262 (including 10% for materials).
Peter's records show income of $750,000 for the year, which is less than expected. He reviews his quote book and finds several jobs where he received cash payment and used the quote as a tax invoice. This is an additional $60,000 income.
Peter recalculates his income for the year as $810,000, which is within the benchmarks. Peter asks his bookkeeper for advice on keeping better records.
Example 3
Rodney runs a roof tiling business and works only on household jobs.
Rodney has purchased $330,000 worth of roof tiles according to his supplier statement for the year.
Using the benchmark of 40% for cost of tiles as a percentage of the price charged to the customer, Rodney calculates his sales should be approximately $825,000.
As he has only recorded $700,000 sales, he decides to review his records and speak to his bookkeeper.
Input benchmark - metal roofing
Industry overview
The input benchmarks have been developed in consultation with the Metal Roofing and Cladding Association of Australia.
They represent the industry norm and apply to metal roofers who work directly with household customers and are responsible for purchasing their own materials. The main activity for these businesses is the installation of metal roofing and cladding.
These benchmarks are current as at October 2010.
Input benchmark guide
The table below sets out input benchmarks for metal roofers.
You can use these benchmarks to compare and check your business performance to the metal roofing industry average.
Benchmark guide
|
Installation rate - two tradesmen (square metres per day)
|
40 - 50
|
Cost of materials as a percentage of the price charged to the customer
|
45 - 55
|
Whole house - typical job size (square metres)
|
150 - 170
|
Days to complete typical whole house job - two tradesmen
|
3
|
Price charged ($) per square metre
|
aluminium or zinc coated steel
|
30 - 51
|
colour coated steel
|
40 - 62
|
Notes
- All dollar amounts are GST-inclusive.
- Add extra for scaffolding when used.
Input benchmark - sales turnover
You can use these benchmarks to:
- estimate your income
- compare your income against the metal roofing industry average
- check that your records accurately reflect your income.
Income guide
|
Metal roofing used per year (square metres) - two tradesman
|
11,000
|
Price charged ($) per square metre
|
aluminium or zinc coated steel
|
30 - 51
|
colour coated steel
|
40 - 62
|
Sales turnover range ($)
|
330,000 - 682,000
|
Days worked per year
|
220
|
Notes
- All dollar amounts are GST-inclusive.
- Add extra for scaffolding and edge protection when used.
Input benchmark examples
Example 1
Kevin runs a metal roof installation business and has one sub-contractor working for him. They work on household jobs only. They can install 50 square metres per day and Kevin charges an average of $45 per square metre (including materials).
Using the benchmarks, Kevin estimates that he has installed 11,000 square metres of metal roofing with income of $495,000.
Kevin's records show reported income of $492,000, which is within the benchmarks. He is happy with his record keeping.
Example 2
Joe has a metal roofing business with one employee. It has been a busy year due to storms in the local area. Joe worked 230 days in the year to fit in the extra work. On average he installed 50 square metres per day. He charges $60 per square metre for colour coated steel and $50 per square metre for aluminium or zinc coated steel.
Joe's records show that he purchased 11,500 square metres of metal roofing. Two-thirds of the jobs completed used colour coated steel.
Using the benchmarks, Joe estimates income of $650,900 for the year.
Joe's records show income of $575,000, which is less than he expected. He checks his quote book and finds several cash jobs which he has not included. This is an additional $75,000 in income.
Joe recalculates his income for the year at $650,000, which is within the benchmarks. Joe is happy with his records but asks his bookkeeper for advice on keeping better records.
Industry overview
Businesses in this industry repair and restore existing roofing materials. The major products and services provided include replacing broken tiles, securing flashings, repairing capping with cement or acrylic mortar, cleaning roof tiles and painting roof sealer.
Input benchmarks
You may find the input benchmarks useful in calculating the expected income based on the labour and materials used. They apply to roof painters and repairers who work directly with household customers and who are responsible for purchasing their own materials.
The input benchmarks have been developed in consultation with the Master Painters Association of Australia, various state roof tiling associations and industry participants.
They represent the industry norm. You should consider your own personal circumstances when using the input benchmarks to assess your situation.
These benchmarks are current as at March 2010.
Input benchmark guide
The table below sets out input benchmarks for tradespeople in the roof painting and repair industry.
You can use this benchmark to compare and check your business performance to the roof painting and repair industry averages.
Benchmark guide - roof painting
|
Coverage rate - sealer or primer
(square metres per litre)
|
low spread rate
|
4 - 8
|
high spread rate
|
9 - 16
|
Coats applied
|
sealer or primer
|
1
|
base coat
|
0 - 1
|
paint top coat
|
1 - 2
|
Cost of paint as a percentage of the price charged to the customer
|
20 - 40
|
Average job size (square metres) - whole house
|
180
|
Tradespeople per job
|
2
|
Days to complete average job including preparation clean and water blasting - add one day for safety rail set up and pull down if necessary
|
paint only
|
2 - 3
|
paint with minor repairs
|
3 - 4
|
Price charged ($) per house - add safety railing or scaffolding charge if used
|
2,000 - 4,000
|
Notes:
- All dollar amounts are goods and services tax (GST) inclusive.
- Add safety rail costs if applicable, usually $10 - $20 per metre.
Input benchmark - sales turnover
You can use this benchmark to:
- estimate your income
- compare your income against the roof painting and repair industry average
- check that your records accurately reflect your income.
Income guide - roof painting only
|
Sealer or primer - litres used per year
|
low range
(at average 5 square metres per litre)
|
2,628 - 3,960
|
high range
(at average 10 square metres per litre)
|
1,314 - 1,980
|
Square metres completed per year
|
13,140 - 19,800
|
Price charged ($) per house
|
2,000 - 4,000
|
Sales turnover range ($) excludes safety railing and scaffolding charge
|
146,000 - 440,000
|
Average labour charge ($) per day
|
per tradesperson
|
200 - 400
|
Typical job size (square metres) - house
|
180
|
Jobs completed per year
|
73 - 110
|
Days to complete average job
|
2 - 3
|
Days worked per year
|
220
|
Notes:
- Climatic conditions may decrease or increase paint drying time and affect productivity in certain regions.
- Add extra charges for scaffolding, safety railing and roof pole when charged to customer.
- If no sealer or primer used, substitute spread rates for paint.
Input benchmark examples
Example 1
Rob operates a roof painting business and has one sub-contractor working for him. They work on household jobs only.
Rob establishes from his quote book that his average job size is about 180 square metres and they normally take between 2 to 3 days to complete. He normally charges about $3,500 for each job.
Rob reviews the statements from his supplier and finds that he has purchased 1,620 litres of sealer, which covers approximately 16,200 square metres of roof painting. Using his average job size of 180 square metres, Rob calculates that he completed about 90 jobs during the year for income of $315,000.
Rob's records show reported income of $320,000, which is within the benchmarks and close to his estimate. He is happy with his record keeping.
Example 2
Tony has a specialist roof painting business with one employee. His work is household roof painting only and he does not perform repair work.
Checking his business records for the year Tony finds he has income of $225,000 for 90 jobs. Tony normally charges $2,500 for an average house that is painted in two days.
Using the benchmark guide, Tony estimates he would have worked 180 days to earn $225,000. However, Tony has had a busy year and is sure he worked more than that.
Tony reviews his quote books and finds 20 jobs where he was paid cash that was not deposited to his bank account. He charged $45,000 in total for these jobs. Tony recalculates his income for the year to $270,000 and is now within the benchmarks. Tony asks his bookkeeper for advice on keeping better records.
Industry overview
Businesses in this industry install roof guttering. Other services may include the repair and maintenance of roof gutters.
Input benchmarks
These input benchmarks have been developed in consultation with the Metal Roofing and Cladding Association of Australia.
They represent the industry norm and apply to roof guttering installers who work directly with household customers and are responsible for purchasing their own materials.
These benchmarks are current as at October 2010.
Input benchmark guide
The table below sets out input benchmarks for tradespeople in the roof guttering industry.
You can use these benchmarks to compare and check your business performance to the roof guttering industry average.
Benchmark guide
|
Installation rate - two tradesmen (linear metres per day)
|
40 - 50
|
Cost of materials as a percentage of the price charged to the customer
|
45 - 55
|
Whole house - typical job size (linear metres) plus four downpipes
|
70
|
Days to complete typical whole house job - two tradesmen
|
2 - 3
|
Price charged ($) per linear metre
|
aluminium or zinc coated steel
|
30 - 46
|
colour coated steel
|
35 - 56
|
Notes
- All dollar amounts are goods and services tax (GST)-inclusive.
- Add extra for scaffolding when used.
Input benchmark - sales turnover
You can use these benchmarks to:
- estimate your income
- compare your income against the roof guttering industry average
- check that your records accurately reflect your income.
Income guide
|
Roof guttering installed per year (linear metres plus downpipes) - two tradesmen
|
11,000
|
Price charged ($) per linear metre
|
aluminium or zinc coated steel
|
30 - 46
|
colour coated steel
|
35 - 56
|
Sales turnover range ($)
|
|
330,000 -616,000
|
Days worked per year
|
220
|
Notes
- All dollar amounts are GST-inclusive.
- Add extra for scaffolding when used.
Input benchmark example
Mark has a roof guttering business with one employee. He does household work only, including extensions and replacement of old guttering.
Mark installs both aluminium or zinc coated steel and colour coated steel guttering and charges an average of $50 per metre. To be competitive with other businesses in his area, Mark offers discounts for customers paying in cash.
Mark uses his bank statements to record income. His records show income of $255,000 for the year. This is less than the benchmarks, so Mark decides to review his records.
Purchase statements from his suppliers show that Mark purchased 11,000 metres of guttering. Using the benchmarks, he estimates his income should be around $550,000.
Mark checks his diary and finds several cash jobs which he has not recorded. This is an additional $250,000 in income.
Recalculating his figures, Mark has income of $505,000 for the year. This is within the benchmarks and accounts for cash discounts offered to some friends. Mark is confident that he has recorded all income for the year. However, he asks his bookkeeper for advice on how to keep better records so that he has all the information he needs for his next business activity statement.
For more information about small business benchmarks, refer to Small business benchmarks.
For more information about your tax obligations as a small business operator, refer to:
Last Modified: Tuesday, 21 February 2012
|