Benchmarks are financial ratios expected from a "typical" business within a particular industry.
They are calculated by Statistics New Zealand using data supplied by Inland Revenue from information reported on tax returns and financial statements of small to medium enterprises with an annual turnover between $60,000 and $10 million.
The first group released yesterday includes cafes, restaurants, electrical services, painting and decorating, taverns and bars.
Deloitte Dunedin tax partner Peter Truman said the benchmarks would be helpful for business people in letting them assess whether they were at the top or bottom of their industry, or somewhere in between.
"I suggest it will be a useful business tool, allowing businesses to focus on what do do differently to improve their performance."
But the data would also allow Inland Revenue to study whether profits from particular industries were particularly low, suggesting not all transactions were being declared. That would point the way to an audit, he said.
Inland Revenue assurance manager Tony Morris said benchmarks could help business owners identify potential trouble spots and opportunities to make improvements.
Tax agents and accountants could also use them to keep their clients' financial reporting up to date.
"Being within or outside a benchmark range does not mean the business is compliant or non-compliant with their tax obligations. It is simply one indicator of performance - for example, insufficient product mark-up, difficult trading circumstances or different cost or pricing structures from competitors."
However, it could also indicate that not all transactions were being recorded, he said.
Industry benchmarks were not a new concept and Inland Revenue had already been using them - together with other indicators - to identify businesses that indicated the potential for tax risk.
By publishing the benchmarks, Inland Revenue was seeking to bring more transparency to the financial performance of businesses within industries.
Benchmark guidelines are online at: www.ird.govt.nz/industry-benchmarks
