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Building Trade Profit Margins: ATO Benchmarks for Carpenters and Bricklayers (2023–24)

In building trades the ATO’s key benchmark is total expenses, and it climbs steeply with size: carpenters over $400,000 spend 76–87% of turnover. Most of the money a growing trade loses is in vehicles, subcontractors and unpaid progress claims.

3 min read

The short answer

ATO 2023–24 total expenses for carpentry average 41% of turnover under $110,000, 56% up to $400,000 and 81% above. Bricklaying averages 38%, 60% and 77%. Labour runs 21–49% and motor vehicles 2–12%. For sole traders and partnerships the owner’s own pay is not an expense on the tax return, which is why the smallest turnover band shows so much left over: much of it is the owner’s wage.

Carpentry services: ATO benchmark ranges, 2023–24

Annual turnover$50,000 – $110,000$110,001 – $400,000More than $400,000
Total expenses ÷ turnover (key benchmark)32–50%46–66%76–87%
  Average41%56%81%
Labour ÷ turnover24–39%21–35%27–43%
Motor vehicle ÷ turnover8–12%5–8%2–4%

Source: ATO small business benchmarks, carpentry services, from tax returns for the 2023–24 financial year (page updated 16 March 2026).

Bricklaying services: ATO benchmark ranges, 2023–24

Annual turnover$50,000 – $150,000$150,001 – $350,000More than $350,000
Total expenses ÷ turnover (key benchmark)29–46%51–68%70–84%
  Average38%60%77%
Labour ÷ turnover23–38%29–43%35–49%
Motor vehicle ÷ turnover7–11%5–7%3–4%

Source: ATO small business benchmarks, bricklaying services, from tax returns for the 2023–24 financial year (page updated 16 March 2026).

Reading the ranges

Worked example: a carpentry business with a crew of four, $650,000 turnover

LineA year% of turnoverATO range (More than $400,000)Where it sits
Total expenses$591,50091.0%76–87%Above
Labour$234,00036.0%27–43%Inside
Motor vehicle$32,5005.0%2–4%Above

Labour is inside range. Vehicles a point above it and total expenses four points above leave 9% instead of the typical 19%. On a business this size the first places to look are quoted prices against actual hours, and materials bought for jobs not yet invoiced.

Where building trades usually leak

See where your business sits, from your bank statement

Upload a CSV or PDF of your business bank account (3 to 12 months). The health check rebuilds what you really earn, compares each cost with businesses like yours, and shows where money is leaking and who owes you. Free to run: you see how much is at stake before you pay anything.

Any bank, any currency. The file is read once and not kept. Full report from $149.

Frequently asked questions

What is a good profit margin for a carpenter in Australia?

ATO 2023–24 total expenses for carpentry average 41% of turnover under $110,000, 56% up to $400,000 and 81% above, leaving roughly 19–59% before tax, much of it the owner’s own pay in the smaller bands.

What are the ATO benchmarks for bricklayers?

For 2023–24, bricklaying total expenses are 29–46% of turnover under $150,000, 51–68% up to $350,000 and 70–84% above; labour is 23–49% and motor vehicles 3–11%.

Why does my building business have no cash when it is busy?

Progress claims and final payments that arrive late, materials bought before jobs are invoiced, variations not charged and vehicle finance repayments all take cash out of a business that is profitable on paper.

Do subcontractors count as labour in the ATO benchmarks?

The ATO labour figure is mainly salary and wages. Subcontractor payments may be reported in other expense lines, so compare total expenses to turnover first.

See where your building business sits, from your bank statement

Upload a CSV or PDF of your business bank account (3 to 12 months). The health check rebuilds what you really earn, compares each cost with businesses like yours, and shows where money is leaking and who owes you. Free to run: you see how much is at stake before you pay anything.

Any bank, any currency. The file is read once and not kept. Full report from $149.

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