ATO benchmarks for car dealers

Car dealers earn from selling new and used vehicles, often with trade-ins taken as part payment, and their main costs are vehicle stock, yard and showroom rent, preparation and staff.

Get a quote

General information

These are the Australian Taxation Office's published small business benchmarks for car dealers, shown as the ATO publishes them for each turnover range. They describe the industry as a whole, not any one business, and they are not advice about a particular business. Sources checked 15 October 2026.

Total expenses as a share of turnover

Low and high end of each published range

Total expenses as a share of turnover for car dealers, by turnover range and financial year
Turnover range	Financial year	Low end	High end
$75,000 to $500,000	2023-24	75%	89%
$75,000 to $500,000	2022-23	75%	90%
$500,001 to $1,500,000	2023-24	87%	93%
$500,001 to $1,500,000	2022-23	87%	93%
More than $1,500,000	2023-24	91%	96%
More than $1,500,000	2022-23	92%	96%

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.

Cost of sales as a share of turnover

Low and high end of each published range

Cost of sales as a share of turnover for car dealers, by turnover range and financial year
Turnover range	Financial year	Low end	High end
$75,000 to $500,000	2023-24	60%	78%
$75,000 to $500,000	2022-23	61%	80%
$500,001 to $1,500,000	2023-24	67%	82%
$500,001 to $1,500,000	2022-23	67%	81%
More than $1,500,000	2023-24	76%	85%
More than $1,500,000	2022-23	76%	86%

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

Cost of sales covers the new and used vehicles bought or taken as trade-ins for resale, adjusted for the cars still in stock in the yard at the period end.
Each vehicle is tracked individually, with its purchase or trade-in value and any repairs or detailing recorded against it, so the cost of each sale is clear.
Deposits taken on cars not yet delivered are held apart from sales until the vehicle is handed over, so turnover is recorded in the right period.

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.