ATO benchmarks for music and game shops

Music and game shops sell records, CDs, films, video games and related merchandise, with some also buying and selling second-hand items, while stock 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 music and game 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 music and game shops, by turnover range and financial year
Turnover range	Financial year	Low end	High end
$65,000 to $350,000	2023-24	54%	75%
$65,000 to $350,000	2022-23	54%	77%
More than $350,000	2023-24	76%	87%
More than $350,000	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 music and game shops, by turnover range and financial year
Turnover range	Financial year	Low end	High end
$65,000 to $350,000	2023-24	32%	51%
$65,000 to $350,000	2022-23	36%	55%
More than $350,000	2023-24	39%	56%
More than $350,000	2022-23	44%	63%

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 records, discs, games and merchandise bought to sell, plus second-hand items bought from customers, adjusted for the stock on hand at the period end.
Trade-ins taken from customers are recorded at what was paid or credited for them, so second-hand stock carries a cost in the books the same way new stock does.
Pre-order deposits are recorded as money held for customers until the game or record is collected, so turnover is counted when the sale actually happens.

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.

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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.