ATO Business Benchmarks for Driving Schools and Instructors

The Australian Taxation Office publishes

benchmarks which show a number of different financial ratios of business income to business expenses, to help businesses compare their performance against similar businesses in an industry.
Driver Educator performance benchmarks published by the ATO have been developed using information reported on income tax returns and activity statements for the 2009-10 year.
The key benchmark ratio for this industry determined by the ATO is total expenses to turnover. The ATO consider this ratio to be the most accurate predictor of business turnover.
Key benchmark ratio Annual turnover range
$50,000 – $100,000 $100,000 – $200,000 More than $200,000
Income tax return
Total expenses/turnover 42% – 55% 52% – 67% 69% – 79%
Average total expenses 48% 59% 74%

Benchmarks are published as a range representing the ratios reported by businesses grouped either side of the average. Publishing benchmarks as a range allows for variations across financial years, regions and business models.

The following benchmarks are made available as a guide for businesses to review their performance and business practices against other similar businesses.

The following expenses are not reported by every business, so one or more of these benchmarks may not apply to an individual business.

Benchmark ratio Annual turnover range
Income tax return $50,000 – $100,000 $100,000 – $200,000 More than $200,000
Motor vehicle expenses/turnover 15% – 21% 9% – 17% 5% – 14%—issued-2012

Tony Commisso FCA, BA (Accounting) Tony is a an experienced business adviser and chartered accountant and former a partner with Deloitte. He has operated a successful driving school in Canberra, Australia and through application of his professional skills and passion for excellence has developed a range of specialist skills in the successful operation and growth of driving school businesses. He has co-founded Elpo Technology Pty Ltd a developer of a comprehensive online business solution for driving schools which includes a customer ecommerce interface and leverages modern cloud technology for managing a mobile workforce of driving instructors.

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