The latest performance benchmarks for newsagency businesses issued by the ATO a few weeks ago are wrong in my view and will most likely result in more newsagents having their business records audited.
While the new benchmarks are an improvement on what the ATO published last year, the remain ignorant of the facts. For example, they say the average cost of sales is 70%. I know many newsagency businesses where this is not the case. The considerable variation is a testament to the diverse nature of the businesses which trade under the newsagency shingle.
Having had one of my newsagencies audited because of faulty benchmarks, I am concerned that the new benchmarks have not adequately addressed the situation.
The ATO benchmarks should accurately reflect newsagency trading situations as they are used by the ATO to determine if a newsagency business should be audited. This happens when the business results fall outside or near the borders of the benchmark.
Newsagents should click on the link and read all the ATO numbers and what they say about them. If you are trading outside the benchmarks, get ready for a call from the ATO.
We were audited a few months ago, the ATO seems genuinely surprised that their benchmark was not appropriate. We sailed through the audit but it was a stressor that we did not need.
One of my newsagencies was audited last year. The ATO refused to accept that rent in a shopping centre could be more than 6% and labour more than 8%. I had to escalate their investigation.
I have said this before on the ATO benchmarks… use them to your advantage…
We say that rental of 6% is nonsense… However as I am currently going through a rental review these are the bechmarks being used by my valuer, along with other data… Net result for me is close to a 50% reduction in rental…
Its all about how you present your case… We are going through QCAT as we could not agree on a rental, and my valuer is on QCAT panel… So as opposed to saying they are nonsense, we could be leveraging them to get a better deal…
Wages is another story…
May include lotto % +other % ?
I am still waiting result of audit but have been advised by phone they are taking no further action however this years returns falls outside the benchmark too so I suppose I will be audited again. My records are good so I will just have to wait and see.
according to ATO we all are paid too much rent then?
we were ausited 2 years ago, cause we are selling $1 million bustickets with petty commision.
Hi ,
Yes i am one of those is getting audited again, twice in three years.We are selling alot more tattersall’s product .
Cheers
Theo