Contractors Real Expenses

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These are “SOME” of the “EXPENSES” a Professional Contractor “must” cover

01/ Professional Fees, [Accountants, Solicitors (drafting contracts, etc)]

02/ Staff training, [A government & OH& S requirement. License or “Registered Contractor” accreditation training]

03 Uniforms, [PPE] a WorkSafe requirement][PPE]

04/ Specialist Tools, [tension wrenches, large tools, thermal guns, etc, etc]

05/ Insurances, [Vehicles, machinery, 3rd party, workmanship. Product back up]

06/ Initial equipment Purchase Repayments,

07/ Rent or Lease payments [On sheds or property, registration of ownership of all equipment with Federal body]

08/ Maintenance, [Dealers involvement, about $4,000.00 per year. Oil and grease, costs now considerable. OH& S recommendation:- “equipment should be serviced by qualified people”]

09/ Administration, [office, accounts, activity records, Machinery Hygiene record books]

10/ Wages, [including, sick leave, superannuation, Holiday & leave loadings 17.5% for staff management and family member operators]

11/ Freight, [moving equipment from job to job, acquiring spare parts, delivering fuel to site etc]

12/ Regulations Compliance, [“Weedstop” cleaning on job, oversize signs, warning lights, first aid kits for every vehicle etc ]

13/ Bank Charges, [we all know what they are]

14/ Power, [workshop & office]

15/ Stationery, [consumables, pens, paper, printer inks, business cards, etc]

16/ Licences & Association membership expenses. [to travel to & from meetings, (time and fuel) and costs associated with meeting attendances (meals etc) and annual membership fees]

17/ I.T. Costs, [computers, web site etc]

18/ Telephones, [ mobiles & office]

19/ Loan equipment, [Hi-vis vests for clients to wear while they are on site, safety signs and machinery gratuity considerations]

20/ Consumables, [on hand, supply of tines, springs, shear pins, etc]

22/ Service manuals, [purchasing up-dates]

23/ Transport and non productive time, [The AACAInc estimates that; 40% to 50% of the total job time is non productive, particularly in dairy areas which includes:- pre job inspections, travel to and from job, during work, moving machinery to & from job, moving from paddock to paddock, while on site, Waiting for the opportunity to work, for many reasons out of the operators control, farmer breakdowns, farmer inefficiencies, weather, material not ready, when you arrive on site, etc etc]

24/ Costs for service vehicle [tyres, fuel, maintenance, registration drivers wages whether family or not, still a cost, etc]

25/ $ factor to cover inflation [and fund to replace equipment]

26/ The most expensive component:- FUEL

27/ Vehicle registrations and insurances [Tractors, Trailers, Trucks, Service Vehicles, and the boss’s car]

28/ Living away from home expenses [meals accommodation etc]

29/ Advertising [local newspaper advertising, trade brochures etc]

30/ Current Carbon Tax, Who Knows How Much And What it is Called

31/ G.S.T. [you have got to put the money out, before you can claim it back]


P.O. Box 1883, Bakery Hill, Vic 3354

Australian Agricultural Contractors Association

Official announcement: The Victorian hay Press Owners Association, 5th August 1944
But believed to have been in existence circa 1942 refer history page on web site.
Then, Fodder Conservation Operators Association Sept. 1956
Then, Australian Agricultural Contractors Association Inc, July 2007
PO Box 1883 Bakery Hill, Ballarat, VIC 3354
Web site - e-mail -
ABN 71 516 754 008 Registered address - 400 Froons Rd BUNNALOO NSW 2731

Contact Australian Agricultural Contractors Association