23/05/2025: ATO’s use of small business benchmarks
The ATO has released updated financial benchmarks incorporating data from the 2022–2023 financial year. The small business benchmarks cover over two million Australian small businesses in 100 industries, and businesses can use them to compare their expenses and turnover with similar small businesses. Businesses outside the benchmarks are more likely to attract ATO attention to identify if they’re making mistakes or reporting dishonestly. The ATO estimates that small business tax-avoidance leads to around $11.2 billion per year in missing tax, particularly from under-reporting of income and over-claiming of deductions.
