The 2021–22 small business benchmarks allow you to compare your business’s performance against similar businesses in the same industry. These benchmarks help you assess your business turnover and expenses. Let’s take an example:

• Deb, a sole trader running a pizza shop, wants to track her business’s performance compared to other pizza shop businesses.
• She downloads the ATO app and uses the Business performance check tool to calculate the cost of sales to turnover benchmark for her pizza shop.
• Deb discovers that her shop’s cost of sales falls within the higher end of the range and exceeds the average for pizza shop businesses.
• Armed with this information, she negotiates better deals to reduce her business expenses and improve profitability.

You can access these benchmarks through the ATO website and calculate your own benchmark using the Business performance check tool on the ATO app. Remember, consulting a tax professional at The Bottom Line can provide personalized guidance for your tax matters.