ATO benchmarks for craft shops

Craft shops sell yarn, fabric, paints, paper and hobby supplies, often with classes or workshops on the side, while stock across many small product lines and shop rent are their main costs.

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General information

These are the Australian Taxation Office's published small business benchmarks for craft shops, 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 craft shops, by turnover range and financial year
Turnover range	Financial year	Low end	High end
$65,000 to $150,000	2023-24	66%	84%
$65,000 to $150,000	2022-23	68%	82%
More than $150,000	2023-24	75%	90%
More than $150,000	2022-23	76%	87%

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 craft shops, by turnover range and financial year
Turnover range	Financial year	Low end	High end
$65,000 to $150,000	2023-24	35%	51%
$65,000 to $150,000	2022-23	35%	50%
More than $150,000	2023-24	38%	53%
More than $150,000	2022-23	40%	53%

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 yarn, fabric, craft materials and kits bought to sell, adjusted for stock on hand at the period end, including part rolls of fabric and ribbon.
Materials taken from stock to run in-store classes are recorded as a class cost rather than left in stock, so the stock figure and cost of sales stay accurate.
Class and workshop fees are recorded separately from product sales, so the books show how much turnover comes from teaching and how much from goods sold.

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.