ATO benchmarks for pharmacies

Pharmacies earn from dispensing prescriptions and from selling medicines, vitamins, health and beauty products over the counter, while stock bought from wholesalers and pharmacist and staff costs are their main outgoings.

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General information

These are the Australian Taxation Office's published small business benchmarks for pharmacies, 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 pharmacies, by turnover range and financial year
Turnover range	Financial year	Low end	High end
$400,000 to $1,500,000	2023-24	86%	92%
$400,000 to $1,500,000	2022-23	86%	91%
$1,500,001 to $3,500,000	2023-24	87%	93%
$1,500,001 to $3,500,000	2022-23	88%	93%
More than $3,500,000	2023-24	89%	94%
More than $3,500,000	2022-23	90%	95%

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 pharmacies, by turnover range and financial year
Turnover range	Financial year	Low end	High end
$400,000 to $1,500,000	2023-24	61%	67%
$400,000 to $1,500,000	2022-23	62%	67%
$1,500,001 to $3,500,000	2023-24	63%	67%
$1,500,001 to $3,500,000	2022-23	63%	67%
More than $3,500,000	2023-24	66%	70%
More than $3,500,000	2022-23	66%	70%

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 medicines and retail stock bought from wholesalers to dispense or sell, adjusted for what is still on the shelves and in the dispensary at the end of the period.
Takings from the dispensary system and the retail point of sale are matched to card settlements, cash banked and the payments received for dispensed prescriptions, so turnover in the books is complete.
Wholesaler invoices and the credit notes for returned or expired stock are entered as they arrive and matched to monthly statements, so the cost of stock reflects what the pharmacy actually kept.

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.