The short answer
ATO 2023–24 benchmarks put clothing retailers’ cost of sales at 39–58% of turnover and florists’ at 40–53%. Total expenses average 78–87% for clothing and 75–87% for florists, leaving roughly 13–25% before tax and the owner’s pay. Rent runs 4–19%.
Clothing retailing: ATO benchmark ranges, 2023–24
| Annual turnover | $65,000 – $250,000 | $250,001 – $500,000 | More than $500,000 |
|---|---|---|---|
| Cost of sales ÷ turnover (key benchmark) | 39–55% | 46–58% | 48–57% |
| Average | 47% | 52% | 53% |
| Total expenses ÷ turnover | 72–85% | 78–88% | 83–91% |
| Average | 78% | 83% | 87% |
| Labour ÷ turnover | 14–22% | 11–19% | 12–18% |
| Rent ÷ turnover | 11–19% | 8–14% | 5–10% |
| Motor vehicle ÷ turnover | 2–4% | 1–2% | 1% |
Source: ATO small business benchmarks, clothing retailing, from tax returns for the 2023–24 financial year (page updated 16 March 2026).
Florists: ATO benchmark ranges, 2023–24
| Annual turnover | $65,000 – $300,000 | $300,001 – $600,000 | More than $600,000 |
|---|---|---|---|
| Cost of sales ÷ turnover (key benchmark) | 40–51% | 43–50% | 45–53% |
| Average | 45% | 47% | 49% |
| Total expenses ÷ turnover | 68–82% | 78–88% | 83–91% |
| Average | 75% | 83% | 87% |
| Labour ÷ turnover | 13–23% | 14–22% | 16–23% |
| Rent ÷ turnover | 8–14% | 7–11% | 4–8% |
| Motor vehicle ÷ turnover | 3–5% | 2–3% | 1–2% |
Source: ATO small business benchmarks, florists, from tax returns for the 2023–24 financial year (page updated 16 March 2026).
Reading the ranges
- Cost of sales rises with size for clothing (47% to 53% on average): larger stores discount more and carry more brands.
- Rent halves from the smallest band to the largest. Rent above range almost always means the shop needs more sales than the site delivers.
- Wages are low (11–23%), so retail profit is mainly margin and rent.
Worked example: a clothing boutique, $380,000 turnover
| Line | A year | % of turnover | ATO range ($250,001 – $500,000) | Where it sits |
|---|---|---|---|---|
| Cost of sales | $228,000 | 60.0% | 46–58% | Above |
| Total expenses | $345,800 | 91.0% | 78–88% | Above |
| Labour | $57,000 | 15.0% | 11–19% | Inside |
| Rent | $64,600 | 17.0% | 8–14% | Above |
Wages are fine. Cost of sales two points above range and rent three points above it leave 9% instead of the typical 17%. The usual causes are end-of-season markdowns and a lease signed for a busier year.
Where shops usually leak
- Markdowns deeper and earlier than needed, and stock bought that never sells at full price.
- Stock on hand far above a few months of sales: cash on the shelf.
- Card fees above a normal rate on a high share of card sales.
- Shrinkage that is never measured.
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.