The short answer
ATO 2023–24 total expenses for building cleaning services average 42% of turnover under $115,000, 57% up to $250,000 and 77% above. Labour runs 29–56% and vehicles 3–11%. 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.
Cleaning services – building and other industrial: ATO benchmark ranges, 2023–24
| Annual turnover | $50,000 – $115,000 | $115,001 – $250,000 | More than $250,000 |
|---|---|---|---|
| Total expenses ÷ turnover (key benchmark) | 30–53% | 46–69% | 69–85% |
| Average | 42% | 57% | 77% |
| Labour ÷ turnover | 31–48% | 29–47% | 35–56% |
| Motor vehicle ÷ turnover | 7–11% | 5–9% | 3–5% |
Source: ATO small business benchmarks, cleaning services – building and other industrial, from tax returns for the 2023–24 financial year (page updated 16 March 2026).
Reading the ranges
- Labour is most of the cost once the owner stops cleaning: 35–56% above $250,000.
- The step between bands is hiring: average expenses rise from 42% to 77% as the work moves from the owner to employees.
- Vehicles fall from 7–11% to 3–5% as routes fill up.
Worked example: a commercial cleaning company, $310,000 turnover
| Line | A year | % of turnover | ATO range (More than $250,000) | Where it sits |
|---|---|---|---|---|
| Total expenses | $275,900 | 89.0% | 69–85% | Above |
| Labour | $192,200 | 62.0% | 35–56% | Above |
| Motor vehicle | $12,400 | 4.0% | 3–5% | Inside |
Vehicles are inside range. Wages six points above range lift total expenses four points above it, leaving 11% where the typical business keeps 23%. Usually one or two contracts priced before the last award increases, or sites taking more hours than were quoted.
Where cleaning businesses usually leak
- Contracts never repriced after award increases each July.
- Sites that take longer than quoted: track actual hours per site against the price.
- Travel between sites unpaid by the client.
- Slow-paying commercial clients on 30 to 60-day terms while wages go out weekly.
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