ATO benchmarks for air conditioning
Air conditioning, refrigeration and heating businesses earn from installing, servicing and repairing systems, while units, parts, refrigerant, vehicles and staff time are their main costs.
General information
Total expenses as a share of turnover
Low and high end of each published range
| Turnover range | Financial year | Low end | High end |
|---|---|---|---|
| $50,000 to $150,000 | 2023-24 | 54% | 73% |
| $50,000 to $150,000 | 2022-23 | 54% | 73% |
| $150,001 to $600,000 | 2023-24 | 65% | 78% |
| $150,001 to $600,000 | 2022-23 | 66% | 80% |
| More than $600,000 | 2023-24 | 79% | 89% |
| More than $600,000 | 2022-23 | 81% | 90% |
Australian Taxation Office, Small Business Benchmarks, key ratios for 2023-24 and 2022-23 (data.gov.au), licensed under CC BY 2.5 AU. Checked 15 Oct 2026.
What sits behind these figures in the books
- The main day-to-day expenses are units and parts bought for jobs, refrigerant, vehicle running costs, tools, insurance, subcontractors and staff costs, and each needs its own clear account in the books.
- Wholesaler bills for units and parts are entered as they arrive and recorded against the installation or service job they were bought for, so no materials cost is left out of the period.
- Gauges, vacuum pumps, recovery machines and other equipment bought to keep are recorded apart from the parts used up on jobs, so the books show running costs and equipment separately.
Sources
- Small Business Benchmarks, 2023-24 Benchmarks (key ratios)
Australian Taxation Office. 2023-24 financial year, released 16 March 2026. Checked 15 October 2026.
Based on Australian Taxation Office data, Small Business Benchmarks, 2023-24 Benchmarks, licensed under CC BY 2.5 AU Licence: CC BY 2.5 AU.
- Small Business Benchmarks, 2022-23 Benchmarks (key ratios)
Australian Taxation Office. 2022-23 financial year, released 17 March 2025. Checked 15 October 2026.
Based on Australian Taxation Office data, Small Business Benchmarks, 2022-23 Benchmarks, licensed under CC BY 2.5 AU Licence: CC BY 2.5 AU.
Get your books in order
Cost of sales and total expenses are only as reliable as the books behind them. Tell us how your business runs and we will suggest a bookkeeping plan that fits.