Benchmark Methodology & Data Sources
How Invoice Buddy analyses, models, and structures financial benchmarks for Australian sole traders and small business operators.
Why We Publish This Data
Most Australian small business owners and tradies start their business to master a trade or serve clients, not to become full-time accountants. However, without transparent financial data, it is difficult to know if your operating expenses are lean, healthy, or leaking cash.
Invoice Buddy compiles official Australian Taxation Office (ATO) and Australian Bureau of Statistics (ABS) data into accessible, industry-specific benchmarks so independent operators can sanity-check their overheads, price their work accurately, and protect their take-home profit.
Primary Data Sources
1. ATO Small Business Benchmarks (2023-24 Financial Year)
Primary SourceThe Australian Taxation Office calculates performance benchmarks based on income tax returns and Business Activity Statements (BAS) lodged by over 1.5 million Australian small businesses. These benchmarks provide empirical expense and cost-of-sales ranges across distinct turnover tiers.
2. ATO Taxation Statistics - Sole Trader Schedule (data.gov.au)
Published annually by the Australian Government on data.gov.au, this dataset details the itemised deduction schedules (Business and Professional Items - BPI) claimed on individual sole trader tax returns. It provides line-item expenditure for motor vehicles, contractor payments, repairs, depreciation, and insurance.
3. Australian Bureau of Statistics (ABS Catalogue 8155.0)
The ABS provides macroeconomic operating metrics segmented by business size (specifically 0-4 employees / micro-enterprises). This dataset informs operational proportions for overheads such as commercial rent, utilities, communications, and software.
Expense Category Modeling
While the ATO publishes overall Total Expense and Cost of Sales ratios, small operators need to see where individual dollars go. To deliver actionable insights, we map the baseline ATO expense pool into 5 standard Australian trade archetypes:
Trades & Construction
Heavily weighted towards raw materials & supplies (46%), motor vehicle running costs (22%), and specialist subbies (16%).
Food & Hospitality
Dominated by wholesale ingredients and perishable stock (52%), commercial kitchen lease (22%), and casual staff awards (14%).
Automotive & Transport
High concentration in diesel and fuel burn (38%), heavy equipment maintenance (28%), and commercial insurance/tolls (26%).
Retail & Storefronts
Characterised by wholesale inventory procurement (58%), physical shopfront lease (22%), and packaging/freight (8%).
Professional & Personal Services
Lower physical COGS with expenses allocated to specialised software/licensing (30%), travel/vehicle (25%), and professional indemnity insurance (20%).
Key Mathematical Definitions
The financial benchmarks provided on this site are designed as educational reference models and planning tools. Individual business performance varies based on location, pricing power, equipment age, and capital structure. This data does not constitute formal taxation, legal, or financial advice. For specific tax lodgments and BAS preparation, always consult a registered Australian tax agent or CPA.
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