AIR CONDITIONING, REFRIGERATION AND HEATING SERVICES INDUSTRY BENCHMARKS

Knowing the industry benchmarks helps you gauge your  air conditioning, refrigeration or heating service business’s performance, identify growth opportunities, and make informed strategic decisions.

The main activities for businesses in this industry are installation, repair and maintenance of ventilation, air conditioning, heating and refrigeration systems. These activities can involve the construction of freezer and cool rooms and the installation of ducting.

Performance Benchmarks

These performance benchmarks are based on data from income tax and BAS statements filed with the Australian Tax Office.

This ratio is likely to be the most accurate predictor of business turnover. For businesses that do not report cost of sales or only report a small amount, total expenses can be used to predict turnover.

Key Benchmark Ratio	Annual Turnover Range
	Low $50,000 – $150,000	Medium $150,000 – $600,000	High More than $600,000
Income Tax Return
Cost of Sales/ Turnover	33% – 47%	37% – 50%	43% – 56%
Average Cost of Sales	40%	44%	50%
Total expenses/turnover	56% - 72%	67% - 80%	82% - 91%
Average total expenses	64%	74%	86%
Activity Statement
Non-capital purchases/ total sales	45% - 63%	53% - 67%	57% - 69%

The benchmarks are published as a range representing ratios reported by businesses grouped either side of the average. Publishing benchmarks as a range allows for variations across financial years, regions and business models.

The following benchmarks are available as a guide for businesses to review their performance and business practices against other similar businesses. The following expenses are not reported by every business, so one or more of these benchmarks may not ap ply to an individual business.

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		Benchmark Ratio	Annual Turnover Range
Income Tax Return	Low $50,000 – $150,000	Medium $150,001 – $600,000	High More than $600,000
Labour / Turnover	20% - 31%	14% - 25%	19% - 29%
Rent / Turnover	3% - 6%	2% - 5%	1% - 3%
Motor Vehicle expenses / turnover	6% - 9%	4% - 6%	2% - 3%