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