Average Profit Margins for Australian Electricians (2026)
How do your numbers stack up against other Aussie sparkies? The ATO releases benchmark data that helps you see if your business is performing well—or if you are at risk of an audit.
The Benchmarks (Turnover $150k - $600k)
For a typical electrical contractor:
- Materials & Subcontractors: Should be 38% - 46% of turnover.
- Labour (Wages): Should be 25% - 35% of turnover.
- Net Profit: A healthy electrical business should aim for 15% - 20% net profit before owner's drawings.
Audit Risk: If your expenses are significantly higher than these benchmarks (e.g., Materials are 60%), the ATO computer system may flag you for a "Cash Economy" audit, suspecting you are doing cash jobs off the books.
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