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.
- 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.
- 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].
- The most current list consists of benchmarks for more than 100 different types of businesses based on data from the 2010-2011 financial year.
- 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.
- The Tax Office has announced that it will be using the benchmarks to identify businesses that may be avoiding their tax obligations.
- 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.
- 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
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