Business Cost Calculator - Help
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Get more help: phone: (02) 6271 6270, email: helpdesk@obpr.gov.au
 

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About help
About the Business Cost Calculator
About access
Collapse Using the Business Cost CalculatorUsing the Business Cost Calculator
About cost categories
About compliance cost constraints
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Start a new file
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Collapse Calculate costs screenCalculate costs screen
Add an overview
Set up compliance cost constraints
Calculate costs
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What to include
What next
Set up compliance cost constraints form
Collapse Calculate costs - no optionsCalculate costs - no options
Create an option
Collapse Calculate costs - 1 optionCalculate costs - 1 option
Create a task
See an option
Delete an option
Copy an option
Collapse Calculate costs - options addedCalculate costs - options added
Create a task
See an option
Reorder an option
Delete an option
Copy an option
Collapse Calculate costs - tasks addedCalculate costs - tasks added
Create an activity costing
See an option or a task
Reorder an option
Reorder a task
Delete an option or task
Copy an option or task
Show and hide tasks
Collapse Calculate costs - activities addedCalculate costs - activities added
See an option, task or activity costing
Reorder an option
Reorder a task
Reorder an activity costing
Delete an option, task or activity costing
Copy an option, task or activity costing
Show costings for years
Show and hide tasks
Show and hide activities in list
Form 1 - create an option
Form 2 - create a task
Form 3 - create activity costing
See cost summary
See calculation formula
Wage calculator
Collapse See report(s)See report(s)
Business Cost Calculator report
Business Cost Calculator present value report
Business Cost Calculator detailed report
Business Cost Calculator cost category report
Business Cost Calculator supporting evidence report
Frequently asked questions
Glossary
Helpful websites
Collapse TutorialTutorial
Enter the Calculate costs tab
Your feedback
What's a regulation
Compliance costs
What's a BCC report
What's a Regulation Impact Statement (RIS)

Enter the Calculate costs tab

Start building your proposal – click the Calculate costs tab.

Proposal info - overview

You need an overview for this proposal.

Click on Add overview (or the Show link). Here, you can enter the name of your proposal, the problem you want to fix and your objectives.

Handy hint! At other times, if you just want to calculate costs, you don't need to fill in this section.

For this tutorial, enter the problem that needs to be fixed and the objectives.

Start building your proposal

Now, it's time to start building the body of your proposal – its options, tasks and activity costings. The tasks are what businesses will have to do for each option to work.

Click on Calculate costs (or the Create options, tasks & activity costings link, or the Show link).

DOBA has three options:

  • Option 1: Status quo.
  • Option 2: Regulation.
  • Option 3: Voluntary code of conduct.

Step 1: Create an option

Let's start with Option 2 - 'Regulation'. (Later on, you can easily go back and create Option 1 - 'Status quo' and change where it sits in the list.)

  1. Click the 'Create options' link on the right-hand side of the page.
  2. Enter the name of the option (no more than 8 words) and a brief description of the option in the form that appears.
  3. Enter 63,400 into the Total number of businesses affected field. This is the total number of beef cattle farmers who'll be affected. DOBA did some research to come up with this estimate.
  4. Choose the Medium radio button. DOBA thinks the figure might be a bit over the actual figure, because of competing research findings from the Australian Bureau of Statistics (ABS) and the Australian Bureau of Agriculture Research Economics (ABARE) – ABARE believes it should be 53,400 – 10,000 less than the ABS.
  5. Leave the Supporting evidence box – it's not mandatory. However, DOBA should enter the research findings from both the ABS and ABARE.
  6. Click the Add this option button. Your option will appear in the list.

Step 2: Create your tasks

OK, so now you've created an option, it's time to start creating some tasks to go with the option. These are the tasks businesses will need to do to make the option a reality.

To create a task:

  1. Click the Create task link in the same row of the option 'Regulation'.
  2. DOBA has identified one of the tasks. It's called 'Develop safety plan'. Enter Develop safety plan into the Task name field.
  3. Enter a brief description of the task into Task description.
  4. Click the Add this task button.

Once you've done this, you can now start calculating the costs of the task.

Step 3: Cost activities

You can create one, two or many activity costings for each task – depending on your needs. When you create an activity, it shows how much a task will likely cost businesses to do. If you create more than one task, all the costs are added up to give you a final cost for each option.

To create an activity costing:

  1. Click the Create activity costing link.
  2. Name your activity costing. Enter Develop documents into the Activity name field.

Handy hint! You can name your activity and add it to your list before you start adding in costs. You can go back to the form at another time to add in the costs.

1. Choose a cost category
To create a safety plan, a business needs to develop documents on various safety practices. So, you need to choose the best cost option from the cost category area.

Handy hint! This help section has information on cost categories – look on the left to find the section.

To choose a cost type:

  1. Go to the Cost category drop-down and click on the arrow.
  2. Choose 'Publication and documentation' from the list. It's the best option.
  3. Click the Apply button to see the next set of choices.

Important! What you choose here will determine what choices you see next.

2. Choose the cost type and more
The next lot of options let you determine what type of cost businesses face and whether it's a one-off cost or an ongoing cost.

DOBA has decided a safety plan will be developed by the actual business affected – it's an internal cost. The supporting evidence also suggests a safety plan would only need to be developed once.

To choose the right cost options:

  1. Click the Labour (internal) radio button next to Cost type.
  2. Click the Start-up cost radio button next to Start-up or ongoing?
  3. Click the Apply button (the second one on the page) to see the next set of choices.

Important! What you choose here will determine what choices you see next.

3. Fill out the rest of the details

  • Number of businesses: The total number of businesses affected by the 'Regulation' option is 63,400. Industry sources suggest 75 per cent of businesses will develop the plan internally (25 per cent will outsource). 75 per cent of 63,400 is 47,550. Enter this into the number of businesses affected field.
  • Number of staff per business performing the activity: How many staff members will create the plan? The industry has told DOBA that 1 staff member would do it. Enter 1 in the Number of staff performing activity field.
  • Number of times activity performed per year: Industry has told DOBA a staff member would create the plan once a year. Enter 1 in the Number of times activity performed per year field.
  • Avg. time each staff to do activity (in hours): Industry has told DOBA it would take a staff member an average of 2 hours to do the activity. Enter 2 in the Avg. time each staff to do activity (in hours) field.
  • Labour cost: How much will labour cost? You can either enter a value for hourly labour costs (including all non-labour costs such as superannuation, workers' compensation, payroll tax and so on), or use the wage calculator to calculate a value.

    In this example, let's create a NEW wage for a position called 'Farm manager', where the wage rate is $13.08 per hour and a total non–wage labour rate of 16%.

    To create and calculate the wage:
    1. Click on the 'Create/choose wage' link. You'll see the wage calculator.
    2. Enter Farm manager in the Position name field.
    3. Enter 13.08 in the Wage cost field.
    4. Enter 16 in the non-wage labour cost % field. Why?

      Supporting evidence suggests that on-costs (workers compensation rate, payroll tax rate, superannuation contribution rate, FBT) is around 16 per cent of the base wage cost.

    5. Click the Calculate button. You should see $15.17 in the Total labour cost field. This is the hourly labour cost for a Farm manager.
    6. Click the Apply this wage button. Your new wage will be saved. You can use it again for this policy.

    Given that the wage rate is based on median weekly earnings for employees in agriculture and not precisely on the cattle industry wage rates, enter the level of certainty as "Medium".
  • Level of certainty of ALL costing info: Because the wage rate is based on median weekly earnings for employees in agriculture and not on cattle industry wage rates, choose the Medium radio button.
  • Supporting evidence: To back up your costings, enter any evidence into the Supporting evidence field. You can cut and paste the content from another document, but you can't paste the formatting.

4. Add the details
Click the Add the activity / cost button to add your activity to the Calculate costs section.

Keep going ...

Need more practice? Then keep going (see Table 2).

  1. Finish costing the 'Develop safety plan' task under the 'Regulation' option 2. Remember, we found 25 per cent of businesses would outsource this activity. You've just created an activity for 75 per cent of businesses, now it's time to cost the remaining 25 per cent of businesses.
  2. Cost the rest of the tasks under the 'Regulation' option 2. Some of these tasks may have more than one activity costing. For example, getting police and politically motivated violence checks would involve two activities to ensure compliance.
  3. Also cost the 'Voluntary Code of Conduct' option 3.
  4. The Status Quo option 1 is not costed and is set to $0. The reason for this is that the costing of option 2 and option 3 are based on direct incremental costing method.

See a report

Once you've added all the information into the Calculate costs section – options, tasks and activity costings – you can see a summary of the information in the See reports tab. Here, there are reports giving you a summary of all your options and their costs.

To see a report:

  1. Click on the See reports tab.
  2. Choose Business Cost Calculator from the Report type drop-down.
  3. Click the Apply button. You'll see the next lot of options.
  4. Choose All options from the Option drop-down. This means you can compare the costs of all your options for your proposal.
  5. If you need to, fill in the Explanatory information field – information on the options.
  6. Click the Show report button.

The report will show that the total compliance cost of the 'Regulation' option is

  Cost per business Total cost for all businesses
Start up cost $2,342.76 $148,530,667.00
Ongoing compliance cost per year $385.00 $24,408,809.80

If you practiced any other options, then you'll see information on these as well.

Option 2 - Regulation
Task Develop Safety Plan
Task description Prepare Safety Plan for access to the e-Robot 3000
Activity name Developing a plan
Cost category Publication and Documentation
Selections Internal Cost
Start-up cost
Businesses Affected – 47,550
Number of staff per business performing activity -1
Times performed – 1
Time to complete – 2 hours
Hours Cost of Labour - $15.17
Supporting evidence Industry advises that 75% of the 63,400 affected businesses will be able to develop a safety plan in-house and takes about 2 hours per business to complete a safety plan. Labour cost for employees in agriculture based on median weekly earnings (not precisely on the cattle industry) is estimated to be $15.17 per hour (including non-labour costs such as workers compensation, payroll tax, superannuation, and FBT) . For details refer online help text on wage calculator.
Level of certainty Medium
   
   
Task Develop Safety Plan
Task description Prepare safety plan for access to the e-Robot 3000
Activity name Purchasing a service
Cost category Purchase cost
Selections Outsourced
Start-up Cost
Businesses affected – 15,850
Times performed – 1
Purchase cost - $300
Supporting evidence Industry advises that 25% of the 63,400 affected businesses will outsource the development of the safely plan at a cost of $300 per business. 
Level of certainty High
   
   
Task Obtain police and politically motivated violence checks
Task description Need to get PMV checks on all employees who will have access to the e-Robot 3000
Activity name Checking
Cost category Permission
Selections Internal Cost
Ongoing Cost
Businesses Affected – 63,400
Number of staff per business performing activity - 5
Times performed per year – 1
Time to complete – 0.50 hours
Hours Cost of Labour - $15.17
Supporting evidence Industry advises that an average of 5 workers per business would need to undertake checks.
Level of certainty High
   
   
Task Obtain police and politically motivated violence checks
Task description Need to get PMV checks on all employees who will have access to the e-Robot 3000
Activity name Purchasing a service 
Cost category Purchase Cost
Selections Outsourced
Start-up Cost
Businesses Affected – 63,400
Times performed – 1
Purchase cost - $245
Supporting evidence Industry advises it would cost $245 per business to undertake these checks.
Level of certainty High
   
   
Task Register access to the e-Robot 3000
Task description Create a register of purchasers of e-Robot 3000 and record details of requirements and potential uses of the e-Robot 3000.  This register will also include a list of employees who have contact with the e-Robot 3000.  This register will need to be updated quarterly to ensure details of the employees are still correct and the intent of use for the e-Robot 3000 has not changed.
Activity name Registering
Cost category Record Keeping
Selections Internal Cost
Ongoing Cost
Businesses Affected – 63,400
Number of staff per business performing activity -1
Times performed per year – 4
Time to complete – 0.50 hours
Hours Cost of Labour - $15.17
Supporting evidence Industry advises that register updates would need to be undertaken 4 times per year but will be subject to individual use patterns. It is estimated the register update will take 30 minutes to complete.
Level of certainty Medium
   
   
Task Train staff in safety procedures
Task description All staff who have access to the e-Robot 3000 will need to undertake specific training in security procedures.
Activity name Training
Cost category Education
Selections Internal Cost
Ongoing Cost
Businesses Affected – 63,400
Number of staff per business performing activity - 5
Times performed per year – 1
Time to complete – 4
Hours Cost of Labour - $15.17
Supporting evidence It is estimated at least 5 staff per business will need to receive training at the external Government run course.  The course is at no charge but has duration of 4 hours.
Level of certainty Medium
   
   
Task Secure Storage
Task description e-Robot 3000 needs to be stored in a secure container when not in use.
Activity name Purchasing a product
Cost category Purchase Cost
Selections Outsourced
Start-up Cost
Businesses Affected – 63,400
Times Performed – 1
Purchase cost - $2,000
Supporting evidence The secure storage container for the e-Robot 3000 is purchased through the manufacturer for $2,000
Level of certainty High
   
   
Task Obtain Licence
Task description Business owner requires a licence to purchase and use e-Robot 3000
Activity name Purchasing a service (getting a licence)
Cost category Purchase Cost
Selections Outsourced
On-going Cost
Businesses Affected – 63,400
Times performed per year – 0.3333
Purchase cost - $40
Supporting evidence Licence costs $40 and needs to be renewed every 3 years
Level of certainty High
   
   
Option 3 - Voluntary Code of Conduct
Task Record access to the e-Robot 3000
Task description The owner/manager is to record details of requirements and potential uses of the e-Robot 3000.  This register will also include a list of employees who have contact with the e-Robot 3000.  This register will need to be updated quarterly to ensure details of the employees are still correct and the intent of use for the e-Robot 3000 has not changed.
Activity name Recording
Cost category Record Keeping
Selections Internal Cost
Ongoing Cost
Businesses Affected – 63,400
Number of staff per business performing activity -1
Times performed per year – 4
Time to complete – 0.50 hours
Cost of Labour - $15.17
Supporting evidence Industry advises that register updates would need to be undertaken 4 times per year but will be subject to individual use patterns. It is estimated the register update will take 30 minutes to complete.
Level of certainty Medium
   
   
Task Secure Storage
Task description e-Robot 3000 needs to be stored in a secure container when not in use.
Activity name Purchasing a product
Cost category Purchase Cost
Selections Outsourced
Start-up Cost
Businesses Affected – 63,400
Times Performed – 1
Purchase cost - $2,000
Supporting evidence The secure storage container for the e-Robot 3000 is purchased through the manufacturer for $2,000
Level of certainty High

Table 2 – e-Robot 3000 Options Summary Information Table