How much your business should be spending

Elizabeth Barry 21 November 2016

working out business expenses

Data from the ATO shows exactly how much small businesses should be spending in every industry.

How much should your business spend? It's a difficult question to answer. However, using data from the Australian Taxation Office (ATO), you can now see the expenditure benchmarks for your industry and business size.

These benchmarks were calculated by the ATO using income tax returns and activity statements from more than 1.3 million small businesses during the 2013/14 financial year. You can search across 100 industries to find the one that best describes your business, then see the labour, rent and motor vehicle expenditure benchmarks for three different turnover brackets.

For example, a clothing retailer with an average turnover of between $250,000 and $500,000 has the following benchmarks:

  • Labour - 13% of turnover
  • Rent - 12.5% of turnover
  • Motor vehicles - 1.5% of turnover

Search for your industry to discover your expenditure benchmarks.

Image: Shutterstock

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