The ATO publishes expense ranges for around 100 industries, built from more than two million tax returns, and compares businesses against them when deciding who is worth a closer look. For transport & delivery at typical turnover, it expects total expenses of 63% to 80% of turnover.
Source: ATO ‘Road freight transport services’ benchmark, 2023-24. Published on data.gov.au.
The ATO does not use one range for the whole industry. What is normal at $100,000 of turnover is not normal at $900,000, so the benchmark moves in bands. Find your band first, then compare.
| Turnover band | Total expenses |
|---|---|
| Lower turnoverUp to $200,000 | 52% – 71% |
| Medium turnover$200,000 – $600,000 | 63% – 80% |
| Higher turnoverOver $600,000 | 78% – 89% |
The ATO does not publish a cost-of-sales benchmark for this industry, which is normal for service businesses — there is no stock to buy, so the ratio would not mean much.
Not that you have done anything wrong. Businesses fall outside their benchmark for entirely ordinary reasons — a bad year, a big equipment purchase, an unusual contract, or simply operating differently to the average.
What it does mean is that you look different to your peers, and looking different is the signal the ATO uses to decide where to spend its attention. A transport & delivery business turning over $600,000 and claiming 92% of that in expenses is claiming $72,000 more than the top of its range. That is worth being able to explain before somebody asks.
The useful response is substantiation, not adjustment. If the number is right, keep the records that show why.
Put your turnover and expenses in and compare them against these ranges. Free, no signup, and nothing leaves your browser.
Check your scoreIndicative only and not financial, tax or audit advice. Benchmark ranges are the ATO's published Small Business Benchmarks for 2023-24; your own circumstances may justify sitting well outside them. Vaulco maps each of its industry categories to the closest published ATO benchmark, named above, so you can check the source yourself. Confirm your position with your accountant or at ato.gov.au.