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Rates
DEPARTMENT OF BUSINESS AND INNOVATION Transport Industry Council Rates and Costs Schedule 2012 12 Tonne Rigid Vehicle (GVM) (2-axle) Introduction This Schedule is a general guide only. Owner drivers are strongly advised to seek independent professional accounting advice for their own situation and discuss all issues with their hirer or potential hirer to ensure that there is no misunderstanding concerning payment structures. This Rates and Costs Schedule is published under section 14 of the Owner Drivers and Forestry Contractors Act 2005 (Vic) (the Act). Under the Act, this Schedule must be given by hirers to all new owner drivers three days prior to engagement. This Schedule will be revised at least annually, and under section 18 of the Act, hirers are required to give owner drivers a copy of any such revised Schedule as soon as practicable after it is published. The Schedule is intended to assist owner drivers and their hirers to better understand the typical operating costs of an owner driver business and to inform their negotiations. THE SCHEDULE DOES NOT SET MINIMUM RATES THAT MUST BE PAID. The Schedule sets out a worked example of typical overhead costs for an owner driver supplying a 12 Tonne Rigid Vehicle. The worked example is based on certain assumptions about the business, for example, that the vehicle is 8 years old, is in operation for 8 hours a day and uses a certain number of tyres. The aim of the Schedule is to assist owner drivers to: better understand their business cost structures and how increases and decreases in different cost items affect overall profitability; and calculate their own unique cost model. This Schedule applies to owner drivers1 who supply a 12 Tonne Rigid Vehicle (2-axle) (12 tonne being the weight of the vehicle fully loaded) or similar vehicle.2 The Schedule is structured as follows: PART 1 FIXED COSTS Describes typical fixed (or annual) business costs. These are the costs that the business must pay each year regardless of h
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