Small business benchmarks and the cash economy

By: Ing Bookkeeping Services  17-Feb-2012
Keywords: Bas Services

The ATO recently updated their small business benchmarks with data from the 2009 financial year. A list of the benchmarks by business type can be found here; http://www.ato.gov.au/businesses/pathway.aspx?pc=001/003/102. Small business benchmarks are used by the ATO to compare your business to other businesses in the same industry. If a business is operating outside of a benchmark, this is an indicator to the ATO that the business is operating in the cash economy. There may be a reasonable explanation for why a business is operating outside of the benchmark, but the ATO believe that it may also be an indicator that the business is not recording or paying tax on all of its transactions, particularly cash transactions If you contacted by the ATO you should: a) ensure that you are meeting your record keeping requirements; b) and check that all of your income and expenses on your tax returns or business activity statements are correct.

Keywords: Bas Services

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