Compare your business now

The small business benchmarks are financial ranges that help compare your business's performance against others in your industry.

On this page

• About ATO benchmarks
• Compare your business performance
• Other tools

About ATO benchmarks

Our benchmark methodology has been verified as statistically valid by an independent organisation and is consistent with international approaches.

Our benchmarks:

• are based on the biggest data set available – calculated from over 1.9 million small business tax returns
• account for businesses with different turnover ranges across more than 100 industries
• are published as a range to recognise the variations that occur between businesses due to factors such as location and circumstances.

We allocate business data to a business type based on a combination of:

• business industry code, which is derived from the Australian and New Zealand Standard Industrial Classification (ANZSIC)
• the main business activity listed on the tax return
• the trading name label of the business.

Compare your business performance

Step 1: Get your information ready

• First, make sure you have your information ready. See what you need to calculate your benchmark.

Step 2: Start calculating

When you compare your business performance:

• choose the right industry code for your business with the business industry code tool
• if you operate more than one business, calculate information for each of them separately and indicate this on your income tax return.

To compare your business performance, you can either:

• download the ATO app, go to Business and select the Business performance check
• calculate it manually by:
  • finding your industry benchmark
  • comparing your business performance manually.
   

You can use the benchmarks:

• to see how your business is tracking against the benchmarks at least once a year, before lodging your tax return
• as a guide to help you set up and understand industry standards if you are new to business.

Step 3: Check your results and take action if required

• After you check your results, consider what it means if you are outside the benchmark.

Other tools

Benchmarks are only part of the analysis of your business. You can also use the:

• business viability assessment tool to check the health of your business
• personal living expenses worksheets to ensure your income covers your expenses.

Consult a business adviser or tax professional for more help understanding how to improve your business performance.