The short answer
ATO 2023–24 total expenses for plumbing average 58% of turnover under $150,000, 66% up to $600,000 and 80% above. Electrical averages 59%, 67% and 81%. Materials (cost of sales) run 20–41%, labour 16–35% 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.
Plumbing services: ATO benchmark ranges, 2023–24
| Annual turnover | $50,000 – $150,000 | $150,001 – $600,000 | More than $600,000 |
|---|---|---|---|
| Cost of sales ÷ turnover | 20–33% | 26–35% | 29–38% |
| Total expenses ÷ turnover (key benchmark) | 50–66% | 59–74% | 75–86% |
| Average | 58% | 66% | 80% |
| Labour ÷ turnover | 21–34% | 16–27% | 23–33% |
| Motor vehicle ÷ turnover | 7–11% | 5–7% | 3–5% |
Source: ATO small business benchmarks, plumbing services, from tax returns for the 2023–24 financial year (page updated 16 March 2026).
Electrical services: ATO benchmark ranges, 2023–24
| Annual turnover | $50,000 – $200,000 | $200,001 – $500,000 | More than $500,000 |
|---|---|---|---|
| Cost of sales ÷ turnover | 22–34% | 26–36% | 30–41% |
| Total expenses ÷ turnover (key benchmark) | 51–68% | 59–75% | 75–86% |
| Average | 59% | 67% | 81% |
| Labour ÷ turnover | 21–35% | 17–30% | 23–34% |
| Motor vehicle ÷ turnover | 6–10% | 4–7% | 3–4% |
Source: ATO small business benchmarks, electrical services, from tax returns for the 2023–24 financial year (page updated 16 March 2026).
Reading the ranges
- Materials rise with size as larger trades take on supply-and-install work.
- Labour dips in the middle band (16–27% for plumbing): one or two employees, the owner still on the tools.
- Vehicles fall from 7–11% to 3–5%, so a second van before the turnover to carry it is expensive.
Worked example: a plumbing business with two vans, $420,000 turnover
| Line | A year | % of turnover | ATO range ($150,001 – $600,000) | Where it sits |
|---|---|---|---|---|
| Cost of sales | $155,400 | 37.0% | 26–35% | Above |
| Total expenses | $323,400 | 77.0% | 59–74% | Above |
| Labour | $92,400 | 22.0% | 16–27% | Inside |
| Motor vehicle | $25,200 | 6.0% | 5–7% | Inside |
Wages and vehicles are inside range. Materials two points above range and total expenses three points above leave 23% where the typical business keeps 34%. Materials are being passed on at cost or below: a standard markup on parts fixes most of it.
Where trades usually leak
- Parts passed on at cost, or not charged at all on small jobs.
- Travel time and call-outs not priced in.
- Invoices sent days after the job, then chased weeks later. See getting paid faster.
- Van stock that grows every month.
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