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    Air conditioning, refrigeration and heating services

    Businesses in this industry install, repair and maintain ventilation, air conditioning, heating and refrigeration systems.

    Activities may also include the construction of freezers, cool rooms and installation of ducting.

    Performance benchmarks

    These performance benchmarks are updated annually and developed using information reported on income tax returns and activity statements for the 2013–14 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 their industry.

    The key benchmark ratio for this industry is cost of sales to turnover (see definitions). This ratio is likely to be the most accurate predictor of business turnover. For businesses that do not report cost of sales or only report a small amount, total expenses to turnover can be used to predict turnover.

    2013–14 financial year

    Key benchmark ratio

    Annual turnover range

    $50,000 – $150,000

    $150,000 – $600,000

    More than $600,000

    Income tax return

    Cost of sales/turnover

    33% – 46%

    38% – 50%

    44% – 56%

    Average cost of sales

    40%

    44%

    50%

    Total expenses/turnover

    56% – 72%

    67% – 80%

    82% – 91%

    Average total expenses

    64%

    74%

    87%

    Activity statement

    Non-capital purchases/
    total sales

    44% – 63%

    53% – 67%

    57% – 69%

    The following benchmarks can be used as a guide for businesses to review their performance and business practices against other similar businesses.

    Not all expenses are reported by every business, so one or more of the benchmarks below may not apply to your business.

    Benchmark ratio

    Annual turnover range

    Income tax return

    $50,000 – $150,000

    $150,000 – $600,000

    More than $600,000

    Labour/turnover

    19% – 31%

    15% – 26%

    19% – 28%

    Rent/turnover

    3% – 6%

    2% – 5%

    2% – 3%

    Motor vehicle expenses/turnover

    6% – 9%

    4% – 6%

    2% – 3%

      Last modified: 25 Feb 2016QC 43639