New Tax Office benchmarks for small business

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Are you a small business owner?

The Australian Tax Office (ATO) has recently released a new small business benchmarks from the 2010-2011 financial year data.

  1. The small business benchmarks were introduced by the Tax Office to provide a tool for assessing the performance of a business as well as a means of checking the reasonableness of various costs incurred in the business relative to its turnover.
  2. The benchmarks are based on data retrieved in prior financial years as a means of comparison for a particular industry [Click here for a list of benchmarks published by the Tax Office].
  3. The most current list consists of benchmarks for more than 100 different types of businesses based on data from the 2010-2011 financial year.
  4. Generally, the benchmarks act as a tool that can help businesses:
    • Compare their performance against other businesses in the same industry;
    • Check that they are meeting their tax obligations;
    • Work out whether they need to adjust their record keeping practices; and
    • Assess whether they are likely to be selected for an audit or review.
  5. The Tax Office has announced that it will be using the benchmarks to identify businesses that may be avoiding their tax obligations.
  6. Small businesses that are found to be falling outside the benchmarks for a particular industry will be more likely to attract an audit by the Tax Office.
  7. For more information on small business benchmarks, click here.

 

Contact us if you require any further clarification or advice.

 

This article was published on 14/10/2013 and is current as at that date

This article is not a substitute for independent professional advice. We do not warrant the accuracy, completeness or adequacy of the information or material in this article. All information is subject to change without notice. We and each party providing material displayed in this article disclaim liability to all persons or organisations in relation to any action(s) taken on the basis of currency or accuracy of the information or material, or any loss or damage suffered in connection with that information or material. You should make your own enquiries before entering into any transaction on the basis of the information or material in this article. Please ensure you contact us to discuss your particular circumstances and how the information provided applies to your situation.

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