The short answer
ATO 2023–24 total expenses for health and fitness centres average 52% of turnover under $175,000, 76% up to $600,000 and 79% above. Labour runs 19–36% and rent 13–23%. 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.
Health and fitness centres: ATO benchmark ranges, 2023–24
| Annual turnover | $65,000 – $175,000 | $175,001 – $600,000 | More than $600,000 |
|---|---|---|---|
| Total expenses ÷ turnover (key benchmark) | 40–64% | 69–83% | 72–85% |
| Average | 52% | 76% | 79% |
| Labour ÷ turnover | 21–36% | 22–35% | 19–33% |
| Rent ÷ turnover | 14–23% | 15–23% | 13–19% |
| Motor vehicle ÷ turnover | 4–6% | 2–3% | 1% |
Source: ATO small business benchmarks, health and fitness centres, from tax returns for the 2023–24 financial year (page updated 16 March 2026).
Reading the ranges
- Rent barely falls with size (13–23% throughout): bigger gyms take bigger floors.
- The jump from small to medium (52% to 76% average expenses) is the move from a studio the owner runs to a gym with paid trainers and front desk.
- Labour falls slightly above $600,000 as memberships carry more of the revenue than classes and PT.
Worked example: a 600 m² gym, $520,000 turnover
| Line | A year | % of turnover | ATO range ($175,001 – $600,000) | Where it sits |
|---|---|---|---|---|
| Total expenses | $452,400 | 87.0% | 69–83% | Above |
| Labour | $166,400 | 32.0% | 22–35% | Inside |
| Rent | $140,400 | 27.0% | 15–23% | Above |
| Motor vehicle | $10,400 | 2.0% | 2–3% | Inside |
Wages are inside range. Rent four points above range lifts total expenses four points above it, leaving 13% where the typical gym keeps 24%. At this rent the gym needs about 17% more turnover to bring rent back to the top of the range: more members, or a price rise for new joiners.
Where gyms usually leak
- Members who stopped coming but still pay, then cancel all at once: watch visit frequency, not just member count.
- Prices frozen for long-standing members while costs rise.
- Equipment finance repayments taking cash a profit figure does not show.
- Staffed hours that do not match peak times.
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.