Business results Outside ATO Industry Benchmarks

When calculating the benchmarks, the ATO took into account that not all businesses are the same. Accordingly, they do not rely on an average – rather, the ATO provides a range of values to account for both high and low margin businesses.

When  the benchmarks are applied to asses a business's income, the ATO uses the figure from the benchmark range that provides the most advantage to the business.

If a business finds it operates outside the benchmarks for their industry, they need to be able to show they have correctly recorded and reported all their income and deductions for their business. To do this, they must ensure they meet their legal record-keeping requirements.

WARNING to businesses ==> Where businesses do not maintain complete and accurate records, the ATO may rely on the benchmarks to make an assessment of their business's taxable income.

Copyright 2014. My Tax Zone.