Audit Risk Benchmarking Skill

Compares a taxpayer's financial ratios (expense/income, labour costs, rent, motor vehicle) against ATO-published small business benchmarks for their ANZSIC industry code. Generates a risk profile without recommending behaviour change.

When to Use

Assessing ATO audit probability before lodgement
Identifying expense ratios that deviate from industry norms
Preparing documentation for items outside benchmark ranges
Pre-engagement risk assessment for new clients
Annual compliance health check

Key Principle

ATO benchmarks are DESCRIPTIVE, not NORMATIVE. Being outside a benchmark is NOT illegal. This skill assesses probability, never recommends adjusting legitimate figures to match benchmarks.

Benchmark Ratios

Ratio

Audit Risk Benchmarking Skill

When to Use

Assessing ATO audit probability before lodgement
Identifying expense ratios that deviate from industry norms
Preparing documentation for items outside benchmark ranges
Pre-engagement risk assessment for new clients
Annual compliance health check

Key Principle

ATO benchmarks are DESCRIPTIVE, not NORMATIVE. Being outside a benchmark is NOT illegal. This skill assesses probability, never recommends adjusting legitimate figures to match benchmarks.

Benchmark Ratios

Ratio

Cost of sales	Cost of sales / Total income	ATO Small Business Benchmarks
Total expenses	Total expenses / Total income	ATO Small Business Benchmarks
Labour costs	Wages + super / Total income	ATO Small Business Benchmarks
Rent	Rent expense / Total income	ATO Small Business Benchmarks
Motor vehicle	Motor vehicle / Total income	ATO Small Business Benchmarks

Audit Risk Benchmarking

Audit Risk Benchmarking Skill

When to Use

Key Principle

Benchmark Ratios

Audit Risk Benchmarking

Audit Risk Benchmarking Skill

When to Use

Key Principle

Benchmark Ratios

Engine Reference

Data Sources

Legislation

Llm Trading Agent Security

Energy Procurement

Council

Carrier Relationship Management

Market Research

Market Research