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Understanding your costs

Get a better understanding of your operating costs.

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  • Rates and costs schedules

Operating costs of a forestry contractor business

Rates and costs schedules set out the typical operating costs of a forestry contractor/business. These include variable costs when operating a vehicle including fuel and types and fixed costs including registration, finance, administration and insurance. The schedules also set out the rates that would typically apply for the driver’s own labour, if work was performed as an employee. 

Forestry contractors can use the schedule to gain a better understanding of: 

  • the factors that affect operating cost items
  • the market for forestry services
  • the amount that they could expect to earn as an employee for the same kind of work
Rates and cost schedules do not set minimum rates of pay. They aim to help both forestry contractors and hirers understand the overhead costs of the business. This will enable you as forestry contractor to assess whether an offer will fully cover the operating costs, provide a return for the forestry contractors own labour and provide a return on business investment. 

Hirer obligations

Hirers are required to provide forestry contractors with the rates and cost schedule that most closely relates to the forestry contractors vehicles or equipment. 

The relevant schedule must be given: 

  • at least three business days before the forestry contractor is engaged, if the forestry contractor is to be engaged for a period of at least 30 days; or
  • on the thirtieth day, if the forestry contractor is engaged for a total period of at least 30 days in any three month period.
These requirements also apply to freight brokers and to tender situations. 

Learn more about your legal obligations to provide the applicable rates and costs schedule to an owner driver. 

Rates and costs schedules 

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