The best figures to use for benchmarking are always your own past results, whether from last month, last quarter, or last year. Still, looking at other people’s numbers can help you spot issues you might miss. The ATO’s newsagent benchmarks are the most useful and affordable option for this. The ATO has access to more data and resources than anyone else, and these are the figures they check first if they investigate your business. This guide will explain what these benchmarks are, how the ATO creates them, and how your POS system can help you use both your own data and the ATO’s figures together.

Key Takeaways

• Your own historical trading figures remain the single most reliable benchmark for your specific newsagency.
• ATO benchmarks are recent national averages derived from tax returns and are useful as a secondary point of comparison.
• Use the product mix to determine whether low-margin print sales are supported by higher-margin categories such as gifts and books.
• A POS System helps you track your own figures accurately.
• Your own figures are the real foundation of good decision-making.

What Are ATO Benchmarks?

ATO small business benchmarks are financial ratios derived from the tax returns of thousands of similar businesses across Australia. What is helpful is that the ATO groups this tax return information by turnover and then calculates average ranges for costs like stock purchases, rent, and total expenses, making it relevant to you. ATO Benchmark figures are available on their website.

The latest figures are for the 2023–24 income year and are up to date, but keep in mind they do not reflect real-time trading conditions. Before you use any of this information, I want to be clear about my own view. The most meaningful benchmark is your own data, tracked over time, because it truly reflects your business. Other people’s figures, like the ATO averages, are helpful, but they should only be a second opinion.

Your Figures Are Best

There is solid research behind this. Studies from Australian banks and the US government show that individual businesses often do not follow the same trends as their wider market. For example, while bookshops overall might be struggling, I know many bookshops using our POS system that are actually doing well.

Your own trading history is the most reliable benchmark because it reflects everything unique about your business. No outside average can show your specific lease, your local competitors, or your regular customers’ habits. If your cost of sales has stayed at 52% for three years, that steady number tells you more about your business's health than any national average.

Tracking your own numbers over time shows trends that outside data cannot. For example, if your cost of sales jumps from 50% to 60% in one quarter, that is a much clearer warning than just being a bit outside the ATO range. If you see your rent-to-turnover ratio slowly rising over two years, you have time to renegotiate your lease before it becomes a problem.

However, if you only look at your own numbers, you might miss something important. It can be hard to know if a slow change is normal for your shop or a sign of a problem. That’s why it’s still useful to check other people’s figures, even if they are not your main focus.

Deriving and Using Benchmarks

The ATO works out these figures using tax returns from businesses that are properly listed as newsagencies. They leave out businesses like post office agencies or delivery contractors, so the averages are more accurate for real retail shopfronts.

Other people’s figures are valuable because they let you double-check your own trends. If your numbers seem fine but are far outside the ATO range, that’s a good reason to look more closely.

Calculating Cost of Sales

Cost of sales to turnover means the percentage of your sales that goes toward buying the stock you sell. You work it out by dividing your cost of sales by your turnover, then multiplying by 100. This number does not include rent, wages, or other overheads. For example, if you buy $100,000 of magazines and gifts and sell them for $200,000, your cost of sales ratio is 50%.

For 2023–24, newsagents with sales between $65,000 and $500,000 usually have a cost of sales between 42% and 59%. Those with $500,001 to $1,000,000 in sales are in the 47% to 62% range, and those above $1,000,000 are in the 55% to 81% range. Use these as a reference alongside your own yearly trend. If your cost of sales is always around 58% and the benchmark for your group is 47% to 62%, that steady result is a good sign, even if you are near the top.

You can find your own historical figures in your Point of Sale (POS) system. Run a rolling 12-month report from your POS software and compare it to the ATO ranges to see if you are deviating from your own trend.

Have your cost of sales, rent ratio, or total expenses changed a lot from your usual pattern? A sudden shift is a stronger warning than any comparison. After you have checked your own numbers, use the ATO figures as a second check. If your numbers are above the ATO range, it could be due to unrecorded sales, heavy discounting, supplier price rises, or stock losses. If both your own numbers and the ATO range show a problem, you should look into possible stock losses right away.

Remember, the ATO benchmarks do not prescribe an ideal mix; they reflect what similar businesses to yours report.

If your numbers are below the ATO range, it often means you have higher markups or a more profitable product mix. In my experience, it can also mean some costs were recorded differently than the ATO categories. Check this carefully. It does not mean there is a problem; it might just show you run your business efficiently. A newsagency that stays below the benchmark for years probably has a strong range of high-margin gifts and cards.

Comparing Other Expense Ratios

Total expenses to turnover includes all your business costs, like rent, wages, and utilities. As with cost of sales, compare this to your own history first, then check the ATO range.

Rent to Turnover

Rent is often your biggest fixed cost. Watching your rent ratio over time can reveal lease issues before the ATO comparison does. If your rent is much higher than usual, ask yourself if it is worth it and investigate why it has changed so quickly. Sudden increases flag inefficiency fast.

Why Product Mix Matters

Product mix means how much each category, like print, lottery, cards, stationery, and gifts, contributes to your sales. Watching how your mix changes over the years tells you more about your business’s direction than any outside average. For example, if gifts and cards have grown from 20% to 40% of your sales in three years, that is real progress.

How POS Systems Help

A good Point of Sale (POS) system lets you track your own figures, which is why I think it is more useful day-to-day than any outside benchmark. It records every sale and builds a history you can use as your main comparison tool. By checking your POS dashboard each month, you can spot changes in your cost of sales before they show up on your yearly tax return.

POS also helps you investigate any gap you find against the ATO figures. You can pull reports on gross margin dollars, stock turn, and dead stock by category and supplier to understand exactly what is driving a number. Your POS might reveal that your cards category consistently outperforms your historical average, which is worth expanding on. For more on this, check out our POS reporting guide.

You should begin by getting your own 12-month trends for cost of sales, rent, and total expenses from your POS system and your accountant. This is your main benchmark. Once you understand your own pattern, compare it to the ATO ranges. If you see a gap, that is your cue to look into it further and investigate.

Your Own Numbers First

To sum up, your own figures, tracked over time, are the most important benchmark for your newsagency. The ATO’s latest numbers are still helpful as a second opinion, but they are just a general guide, not a rule made for your business. Use both, rely on your POS system to keep your data accurate, and you will make better decisions than if you use only one source.

Written by:

Bernard Zimmermann is the founding director of POS Solutions, a leading point-of-sale system company with 45 years of industry experience, now retired and seeking new opportunities. He consults with various organisations, from small businesses to large retailers and government institutions. Bernard is passionate about helping companies optimise their operations through innovative POS technology and enabling seamless customer experiences through effective software solutions.

You are likely missing out on revenue by ignoring the foot traffic generated by the anchor shop next door. Use the Woolworths Effect to turn someone else's marketing budget into your own advantage.

Key Takeaways

• Anchor stores are the major traffic drivers in your shopping centre.
• The Woolworths Effect provides highly predictable footfall.
• Point-of-sale reporting reveals the effect.
• Complementary merchandise often captures passing shoppers.
• Seasonal planning helps.

What Is the Woolworths Effect?

The Woolworths Effect is the sales boost a retailer experiences when an anchor store attracts more shoppers to the shopping centre. It's a piggyback effect. It delivers customers who are already in a buying mood directly to you, increasing your retail revenue without expensive advertising. *For example, a retailer might spend millions on television ads, so bringing many passing shoppers past your shop. Just a tiny fraction of these passing shoppers can significantly boost your profits.

You monitor their business closely by tracking their promotional calendars and recording exactly when the crowds arrive. Often, you must step outside your own shop and observe what the big store is heavily promoting to the general public.

Your POS System can often show the Woolworth's Effect by clearly showing how your sales change during these promotions.

How Do You Mirror or Complement Supermarket Offers?

Now, when you see such a promotion, try to complement their offers by selling these or related items. Ask yourself what people are coming into that shop for, and what you could sell those same people as well on that shopping mission. For example, if the anchor is pushing cheap back-to-school pencil sets, you must feature higher-quality school diaries and study guides.

Often, a good idea is that instead of competing directly, match their campaigns with smart complementary offers:

• When they sell cheap pencil sets, you feature premium diaries and study guides to help kids get ready for class.
• When they sell discount boxed chocolates, you feature high-quality greeting cards and books for a quick Mother's Day gift.
• When they sell bulk party food and drinks, you feature helium balloons and premium gift wrap for weekend family gatherings.
• **Look at your POS System as it is showing what is selling now well in this promotion.

What Are Your Next Steps?

Your next step is to set up a small in-store display tied perfectly to the anchor's campaign. Try it for just a week or two. For example, place a premium BBQ accessories table at the front of your store when the supermarket pushes summer meats.

Your POS System will show you if it actually worked.

If it did, document this promotion in your diary for next year, as most anchors repeat promotions the following year. Then you can be prepared next year.

Conclusion

The Woolworths Effect proves you can quickly turn your biggest competitor into a source of free foot traffic.

Written by:

Bernard Zimmermann is the founding director of POS Solutions, a leading point-of-sale system company with 45 years of industry experience, now retired and seeking new opportunities. He consults with various organisations, from small businesses to large retailers and government institutions. Bernard is passionate about helping companies optimise their operations through innovative POS technology and enabling seamless customer experiences through effective software solutions.

Well, it's that time of year again, the end of the financial year, when we start to look at the books again.

Our POS systems do not require a special backup or a specific time to run EOFY reports. This means you have plenty of flexibility to fit this into your schedule. The only reason to run them immediately is if you want to clean up your books.

Essential Financial Statements

Your accountant will need specific statements to prepare your business accounting and taxes. Be sure to ask them exactly what they need and which date ranges they require. The essential reports generally include:

• Profit and loss statements
• Balance sheets
• Cash flow statements (if you use them)

I suggest printing these in detail so you have the data to support your figures. Do not worry if it seems like too much information; I have never heard an accountant complain about receiving too much detail.

For the tax-savvy, review these reports and look for opportunities to write off any damaged stock or bad debts. Highlighting these items makes it easier to discuss potential tax deductions with your accountant.

Key EOFY System Reports

• Sales reports: These provide the totals of your various revenue streams.
• Stock valuation: Generate this after your stocktake to get a comprehensive picture of your current inventory levels, which is crucial for managing diverse categories such as books, greeting cards, and gifts.
• Accounts receivable (debtors): This highlights your customers' total debts, unpaid invoices, and outstanding balances.
• Accounts payable (creditors): If your software tracks creditors, this shows the total amount of outstanding payments you owe to suppliers or vendors.

System Functions and Webinar Training

Our team has prepared a video from a recent webinar that delves into the intricacies of EOFY reporting with our POS software. From dissecting each report to answering your burning questions, this webinar is a must-watch for understanding how to use helpful system functions.

I think you will find that reviewing these reports will show many insights and give you ideas for your business. If you need any extra help, give us a call!

Of course, if you need more help, give us a call.

Written by:

Bernard Zimmermann is the founding director of POS Solutions, a leading point-of-sale system company with 45 years of industry experience, now retired and seeking new opportunities. He consults with various organisations, from small businesses to large retailers and government institutions. Bernard is passionate about helping companies optimise their operations through innovative POS technology and enabling seamless customer experiences through effective software solutions.

The End of the Financial Year (EOFY) can create timing issues that come back to bite years later—this year, it’s tomorrow.

The Perils of EOFY

Here's the potential snag: some businesses close their books on Tuesday night, while others finalise them the next morning. This creates timing differences, where the same transaction can be recorded in different financial years by different organisations.

This means invoices, credit notes, and payments may not align. Add Australia Post delays or processing delays, and important documents might not appear in your records until after EOFY. As a result, your figures may not match those of your suppliers or customers.

This may become a problem during an ATO audit. The ATO may compare your records with other businesses and ask why the figures differ. Since audits often occur years after the fact, it can be difficult to explain what caused the discrepancy. You end up trying to reconstruct events you barely remember.

We experienced this firsthand. A supplier issued a credit note to us just before EOFY, but we didn’t receive it until a few days later. During an ATO review, that timing difference worked against us, and it ended up costing us. The ATO argued that we should have known about the credit note in the previous financial year.

Taking Control

You can reduce the risk of these issues with a few simple steps:

• Ensure your POS and accounting systems can clearly explain your figures if needed. Putting notes in can be a big help.
• Contact suppliers now if there are large or outstanding amounts.
• Start chasing missing invoices and credit notes.
• If timing cannot be resolved, get written confirmation (email is ideal).
• Where possible, delay closing your EOFY slightly to allow final documents to come in.

One advantage of our POS system is that it allows adjustments after EOFY, so you can continue processing and correcting entries as information arrives.

Written by:

Bernard Zimmermann is the founding director of POS Solutions, a leading point-of-sale system company with 45 years of industry experience, now retired and seeking new opportunities. He consults with various organisations, from small businesses to large retailers and government institutions. Bernard is passionate about helping companies optimise their operations through innovative POS technology and enabling seamless customer experiences through effective software solutions.

For SMBs, there is little in the budget of2026/7, which looks like a grab for money.

Key Takeaways

• The 2026/27 financial year for SMB retailers is a cost reset driven by higher wages, 12% super, and tighter cash flow.
• Retail Award wages rise by 4.75% from 1 July 2026.
• The National Minimum Wage increases to $26.44 per hour.
• The Superannuation Guarantee is now payable within 7 days, placing greater pressure on payroll.

How Much Will Wage Rises and 12% Super Cost SMB Retailers in 2026/27?

Award wage increases raise payroll costs and also increase super costs because super is calculated on eligible earnings.

What will really hurt our cash flow is that this super must be paid within 7 days.

Super Calculation Formula Changes

I suggest that you use a computer program or accounting software to calculate superannuation, as the formula is changing.

Conclusion

There are some other changes to the accounting rules, but I suggest you discuss them with an accountant.

Written by:

Bernard Zimmermann is the founding director of POS Solutions, a leading point-of-sale system company with 45 years of industry experience, now retired and seeking new opportunities. He consults with various organisations, from small businesses to large retailers and government institutions. Bernard is passionate about helping companies optimise their operations through innovative POS technology and enabling seamless customer experiences through effective software solutions.

EOFY is almost here, 6 days to go, and soon, the best POS hardware deals of the year will be unavailable. If you've been sitting on a slow or ageing checkout setup, this is your window to fix it at a better price.

Key Takeaways

• EOFY supplier discounts on POS hardware are only available until 30 June.
• Retailers who upgrade now can claim the purchase this financial year.
• Limited stock means deals disappear once suppliers close out the month.
• A modern POS system reduces checkout headaches and daily retail friction.

Why Are EOFY POS Deals Available Right Now?

POS Suppliers now want to clear warehouse stock before the financial year closes; they need money now, and they would rather get rid of it than count it. That pressure works in your favour. We've negotiated directly with our technology partners to bring you current POS equipment at sharp EOFY pricing, deals that won't be available soon due to limited stock.

Is It Worth Upgrading Your POS System Before 30 June?

For most retailers, yes. Upgrading before 30 June will allow you to claim the purchase as a business deduction in this financial year. That is a potential double benefit: an upfront discount on the hardware, plus better equipment.

Beyond the financials, if your current setup is slow, unreliable, or causing headaches at checkout, carry that problem into the new financial year.

What POS Hardware Is on Sale?

We have included information about selected POS hardware and upgrade packages in our newsletter. If you have specialised needs we maybe able to help you too. Stock is strictly limited to what our suppliers have on hand, and once it's gone, I doubt we can offer these prices to you again.

Act Before the 30 June Deadline

These deals close when the financial year does. If you've been putting off a hardware upgrade, now is the time to get it sorted.

Written by:

Bernard Zimmermann is the founding director of POS Solutions, a leading point-of-sale system company with 45 years of industry experience, now retired and seeking new opportunities. He consults with various organisations, from small businesses to large retailers and government institutions. Bernard is passionate about helping companies optimise their operations through innovative POS technology and enabling seamless customer experiences through effective software solutions.

Readers here already know that the temporary Armaguard bailout that has been keeping Australia's cash-in-transit network afloat expires on 30 June 2026. Less clear is exactly how the incoming new pricing model will affect us after that. 

Key Takeaways

• A cash-in-transit crisis is a severe disruption to Australia's physical cash collection network that threatens to raise retail costs.
• Utility-style pricing will charge businesses based on distance, severely impacting independent retailers across regions.
• Point-of-sale (POS) systems provide the exact tender-mix data needed to forecast your margin exposure.
• Financial auditing of your recent bank statements reveals your current baseline cash expenses before new fees apply.

What Is the Cash Crisis?

Australia's cash-in-transit crisis, spoken about here, is the financial instability threatening the cash infrastructure that collects, transports, and processes cash. Currently, the dominant provider, Armaguard, relies on a temporary bailout to keep its armoured trucks running. Armaguard funding arrangements officially end on 30 June 2026. We now know that new funding models will shift the financial burden directly onto end users, which is confirmed and will soon start. The inevitable cost increases for retailers begin soon.

Why the Cash Crisis Matters

The cash-in-transit crisis matters because it will fundamentally alter the cost of doing business for retailers that accept cash. Major supermarket chains will leverage their massive daily volumes to negotiate better cash contracts, leaving smaller players exposed. Up to now, regardless of size, independent retailers have been able to compete equally with the majors on cash handling.

Furthermore, regional businesses face an extreme risk under the new model. If distance-based pricing takes effect, this will accelerate the current increases in banking charges for manual cash deposits that the industry is quietly seeing.

Tracking Cash With POS Systems

The first point is to get real figures for what you are banking. Review the bank deposit reports in your POS system to see exactly how exposed your business is to cash transactions today. For example, knowing that cash makes up exactly 12% of your weekly revenue gives you the hard data needed to forecast your vulnerability to rising bank fees. Once you have the exact cash figures from your POS reporting, you should approach the bank. Sometimes, the banks can help you restructure your deposit schedules or even waive certain fees. You will not get them unless you approach them proactively.

Conclusion on Cash

We may need to rethink our payment types for our business soon.

Written by:

Bernard Zimmermann is the founding director of POS Solutions, a leading point-of-sale system company with 45 years of industry experience, now retired and seeking new opportunities. He consults with various organisations, from small businesses to large retailers and government institutions. Bernard is passionate about helping companies optimise their operations through innovative POS technology and enabling seamless customer experiences through effective software solutions.

A stocktake is one of the most important disciplines in retail. It shows whether your inventory records match what is actually on your shelves, in the back room, and in storage. It can be a big job, but it remains one of the best ways to control stock, test your inventory system, and uncover problems that are costing you money. I have spent a lot of time around stocktakes over the years, and I've seen firsthand how the more organised the business is before the count, the faster and more accurate the stocktake will be.

Why stocktaking matters

Good inventory management matters because bad stock figures hurt businesses. It is also, for most Australian businesses, a strict ATO requirement. 

A good stocktake helps you:

• Find excess stock and dead stock.
• Improve the accuracy of your inventory records.
• Examine your stock.
• Support your stock values for accounting and tax purposes.

Before you start

A successful stocktake begins before stocktake day.

Look for every place where stock is held in your business. Do not just think about shelves. Include drawers, counters, office shelves, back rooms, warehouses, promotional displays, window displays, bargain bins, and any odd storage spots. We find that these forgotten areas often cause the most stocktake errors.

Now, start to tidy the stock. The tidier it is, the easier it will be to count:

• Move stock to the correct area.
• Straighten mixed and messy sections.
• Separate similar-looking items with different barcodes.
• Pull out damaged, unsaleable, or returned stock.
• Put laybys, consignment stock, customer orders, and goods waiting for dispatch into clearly marked holding areas.

Now divide the business into counting sections. Each section should be clearly defined and, as a rule, take 1-2 hours. This makes it easier to keep organised and focused.

Pick a quiet time if possible.

Select your people for the stocktake, make sure they know their role and what they need to do. We have prepared a video to help them here:

First, organise your people. Counting usually works best in teams; two people counting and one person recording is often an effective combination.

Before anyone starts, hold a short staff briefing so everyone understands:

• How the count will be done.
• The counting order to follow.
• How to handle problem stock.
• Be clear about how units are handled. Everyone must know they are counting singles. If a carton is open, tell them to check it properly and not to assume it is full.
• Who is available during the stocktake if there are questions? If each team handles problems differently, your stocktake will quickly become inconsistent.
• Set up a designated problem area. Rather than holding the count up, put problem stock in that area and move on.

Check your equipment

Before the day, test your technology. There is nothing worse than getting everyone ready only to find out something does not work:

• Test your stocktaking software.
• Check scanners, laptops, and PDTs.
• Charge batteries.
• Have chargers ready.
• Make sure everything connects properly to your POS software.

If you can use laptops or PDTs, do it. They save time because staff can move with them around the shop.

Also have the basics ready:

• Pens.
• Clipboards.
• Labels.
• Tape.
• Markers.
• Spare batteries.

Start counting

When the count starts, use one method and stick to it.

I recommend a simple system of counting from left to right and bottom to top. If you want something different, make sure everyone follows the same rule.

Then work through the stocktake in order:

• Count one section completely before moving on.
• Mark finished sections clearly.
• Use place markers to clearly mark counted areas.
• Keep teams in their allocated areas.

It also helps to start with the hardest or messiest sections first, while everyone is fresh.

Count every location where the same item is kept. It is easy to count the shelf and forget the backup stock in a drawer, cupboard, or storeroom.

Handling problem stock as you go

Keep the process moving.

If a team finds a product with a missing barcode, a damaged label, or another issue, do not let it stop the count. Put it into a problem holding area and keep going.

As you count:

• Spot-check completed sections.
• Recount anything that looks wrong.
• Keep unnecessary staff away from the counted areas.
• Keep customers out of completed sections where possible.
• Clearly note where estimates were used.

Some stock always needs extra care:

• Greeting cards in packed pockets.
• Books displayed in multiple places.
• Magazines on shelves, in pockets, and in return areas.
• Gift lines with display stock out front and backup stock in storage.
• Stationery items that look the same but differ in colour, size, or barcode.

Before you finish

Do one final sweep before you sign off.

Walk the whole business and check every area on your stocktake map. Make sure each section has been counted and marked off. This final check often picks up forgotten displays, cupboards, drawers, and odd corners.

A stocktake can take more than one day, and that is fine. What matters is that it is done carefully, consistently, and completely.

Conclusion

A good stocktake is all about preparation, clear rules, and a disciplined counting process. Do that well, and you will end up with better stock figures, better buying information, and fewer surprises.

If I missed something, please let me know.

Happy stocktaking!

Written by:

Bernard Zimmermann is the founding director of POS Solutions, a leading point-of-sale system company with 45 years of industry experience, now retired and seeking new opportunities. He consults with various organisations, from small businesses to large retailers and government institutions. Bernard is passionate about helping companies optimise their operations through innovative POS technology and enabling seamless customer experiences through effective software solutions.