Tradies, the ATO and industry benchmarks

The Tax Office has been working with trade associations to develop industry benchmarks to help tradespeople comply with their tax obligations.

Businesses can use the benchmarks to compare their performance to the rest of the industry and check that their tax records accurately reflect their business practices.

The benchmarks provide guidance on the amount of time and materials involved in an average job in certain industries, such as the number of litres of paint used by a painter. These ‘inputs’ are based on the factors a tradesperson uses when preparing a quote for a client.

Tax agents can use the benchmarks to assist them when preparing and lodging tax returns and business activity statements for their clients.

To date, benchmarks have been developed, in conjunction with the relevant trade associations and through consultation with tax practitioners and peak industry bodies, for three industries (the Tax Office is working on similar benchmarks for other industries):

The benchmarks to date apply to the following industries (Obtain a FREE fact sheet):
Floor sanding and polishing
Painting
Roofing

What you will need

To use the benchmark tool and self assess your business performance, you may require some or all of the following information:

a tax invoices for jobs done and purchases
a quote book
a your work diary
a statement of purchases from your supplier
a bank statements
a cheque book
a calculator

Simply print out the benchmarking tables relevant for your trade and insert the relevant information (see www.ato.gov.au).

D Maynard
CEO My Tax Zone

Copyright 2014. My Tax Zone.