CARPET LAYING AND FLOOR COVERING INDUSTRY BENCHMARKS

Knowing the industry benchmarks for the carpet laying and floor covering trades helps you gauge your  business’s performance, identify growth opportunities, and make informed strategic decisions.

The main activities for carpeting services businesses are carpet laying, carpet repairing and laying other kinds of floor coverings such as linoleum and cork tiles.

Performance benchmarks

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

The key benchmark ratio for this industry is total expenses to turnover. This ratio is likely to be the most accurate predictor of business turnover.

Key Benchmark Ratio	Annual Turnover Range
	Low $50,000 – $100,000	Medium $100,001 – $250,000	High More than $250,000
Income Tax Return
Total expenses/turnover	34% - 48%	39% - 58%	64% - 79%
Average total expenses	41%	49%	72%
Activity Statement
Non-capital purchases / total sales	26% - 40%	27% - 45%	44% - 63%

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.

		Benchmark Ratio	Annual Turnover Range
Income Tax Return	Low $50,000 – $100,000	Medium $100,001 – $250,000	High More than $250,000
Cost of Sales / Turnover	10% - 17%	11% - 20%	18% - 36%
Labour / Turnover	25% - 36%	20% - 35%	23% - 37%
Motor Vehicle expenses / turnover	7% - 11%	6% - 8%	2% - 4%

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