ATO benchmarks for grocery stores

Grocery and convenience stores take a steady flow of small sales across long trading hours, and spend on stock, rent, power for fridges and freezers, and staff time.

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General information

These are the Australian Taxation Office's published small business benchmarks for grocery stores, 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 grocery stores, by turnover range and financial year
Turnover range	Financial year	Low end	High end
$65,000 to $300,000	2023-24	82%	90%
$65,000 to $300,000	2022-23	82%	90%
$300,001 to $950,000	2023-24	88%	94%
$300,001 to $950,000	2022-23	88%	94%
More than $950,000	2023-24	92%	96%
More than $950,000	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 grocery stores, by turnover range and financial year
Turnover range	Financial year	Low end	High end
$65,000 to $300,000	2023-24	59%	71%
$65,000 to $300,000	2022-23	61%	71%
$300,001 to $950,000	2023-24	64%	73%
$300,001 to $950,000	2022-23	66%	74%
More than $950,000	2023-24	71%	77%
More than $950,000	2022-23	71%	77%

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 groceries, drinks, snacks and other goods bought for resale, adjusted for stock on hand at the period end, including what sits in the cool room.
Spoiled, damaged and out-of-date stock is written off in a consistent way, so the stock figure in the books matches what is physically on the shelves and in storage.
Daily register takings are reconciled against card settlements and cash banked, so the turnover recorded matches the sales actually made at the counter.

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.