The ATO should seek to continue to improve the data integrity of benchmark inputs by, for example, better assisting taxpayers and tax agents to include the correct items of costs in the cost of sales label on the income tax return.
We agreed with this recommendation and implementation was completed on 21 March 2014.
The Small business benchmarks methodology and ratio calculations was published. It incorporates information on the small business benchmark inputs and methodology. It also includes information about the methods and labels used to calculate small business benchmark ratios and cost of sale items. The final product was published after being tested with tax practitioners.