August 2026 · Small business
Industry benchmarks:
a signal, not a verdict.
ATO benchmarks can help compare business performance and identify figures worth reviewing. Being outside a range does not by itself prove an error, and being inside it does not guarantee that everything is correct.
Compare like with like
Choose the right industry
and turnover range.
Confirm the principal business activity and relevant turnover band before comparing ratios. A restaurant, takeaway venue, catering business and accommodation operator can have very different cost structures even when they appear related.
Understand the ratio definition and use figures prepared on a consistent basis. Timing, GST treatment, owner labour, subcontracting, stock movements and unusual events can distort a superficial comparison.
Check the inputs
Reconcile sales, purchases, labour and bank activity before interpreting a ratio.
Explain differences
Record genuine commercial reasons such as location, business model, seasonality, growth, pricing or an unusual disruption.
Improve decisions
Use trends with margins, cash flow and operational measures—not a benchmark in isolation.
What the ATO says
Methodology matters.
The ATO publishes methodology and ratio calculations for its small-business benchmarks. Review the current source because industries, labels and ranges may change.
General information only
A difference deserves
an explanation—not a guess.
Demeter can help reconcile the source records, calculate consistent ratios and investigate meaningful movements.