Painting services

Businesses in this industry

Businesses in this industry supply labour and materials to paint buildings and other structures.

These benchmarks do not apply to businesses that are mainly involved in interior decorating or sign writing.

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, 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

Key benchmarks for 2021–22
Annual turnover range	$50,000 – $150,000	$150,001 – $600,000	More than $600,000
'Total expenses' divided by 'Annual turnover'	36% to 52%	58% to 74%	76% to 86%
Average total expenses	44%	66%	81%

Other benchmarks

Not all expenses are reported by every business. Only use this information as a guide if it applies to your business.

Other benchmarks for 2021–22
Annual turnover range	$50,000 – $150,000	$150,001 – $600,000	More than $600,000
'Cost of sales' divided by 'Annual turnover'	13% to 20%	15% to 21%	15% to 21%
'Labour' divided by 'Annual turnover'	24% to 36%	27% to 40%	36% to 50%
'Motor vehicle expenses' divided by 'Annual turnover'	7% to 10%	4% to 6%	2% to 3%

For benchmarks for previous years, see Small business benchmarksExternal Link.

Input benchmarks

Use these benchmarks to calculate expected income based on the labour and materials used.

They apply to painters who:

work directly with household customers
are responsible for purchasing their own materials.

We developed the benchmarks in consultation with Master Painters Australia Ltd. 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 painting industry average.

Remember:

All dollar amounts include GST.
Extra charges for intricate work (for example, Victorian Style costs 200 to 400% more than the normal price stated in the table).

Input benchmarks for painters
Coverage rate (square metres per litre)	10 to 12
Litres of paint applied per day	8 to 10
Cost of paint as a percentage of price charged to the customer – re-paint	15 to 25
Cost of paint as a percentage of price charged to the customer – new work	30
Days to paint average room (2 coats) – including preparation and cutting in	1 to 1
Average job size (square metres) – 3 room extension including ceilings	175
Price charged per square metre	$10 to $22
Price charged per hour	$25 to $50

Sales turnover

Use this benchmark to:

estimate your income
compare your income against the painting industry average
check that your records accurately reflect your income.

All dollar amounts include GST.

Sales turnover – income guide for painters
Litres of paint used per year	1,760
Square metres completed per year (10 square metres per litre and 2 coats)	8,800
Price charged per square metre	$10 to $22
Price charged per hour	$25 to $50
Sales turnover range (based on square metres of work)	$88,000 to $193,600
Average job size (square metres)	175
Jobs completed per year	50
Days to complete average job	4
Days worked per year	220

Painting services examples

This example shows a way to work out why your income is outside the benchmarks.

Example: Income less than expected

Bradley runs a painting business and works for household customers only. He works by himself and purchases all the paint used in the business. Most of his customers pay in cash.

According to Bradley's records, he has purchased 1,600 litres of paint. He knows his usual spread rate is 10 square metres per litre and he always applies 2 coats. This equals approximately 8,000 square metres painted in the year. His rate is $20 per square metre.

Using the income guide, Bradley estimates his business income should be $160,000. He has recorded income of only $114,500 which is less than expected.

Reviewing his records, he finds several quotes that he has used as a tax invoice. The total amount of these is $44,000. As his income is now $158,500, he decides to ask his accountant how he can improve his record keeping.

End of example

This example shows how to work out if your income is within the benchmarks.

Example: Income within the benchmarks

Matthew runs a painting business and works exclusively for household customers. He works by himself and purchases all the paint for the business.

Matthew's records show that he has purchased 1,700 litres of paint during the year. His standard rate is $22 per square metre for 2 coats, with paint coverage of 10 to 12 square metres per litre.

Using the benchmarks, Matthew estimates that he should have completed between 8,500 and 10,200 square metres of painting with income of $187,000 to $224,400.

Matthew has recorded income of $205,000. He is happy with his record keeping, as his income is within the benchmarks.