Proposed Animal Welfare Standards and Guidelines for Cattle

Appendices

1. 
   Hourly time costs for farm workers
   

2. 
   Estimates of Quantifiable costs of the proposed standards – Option B
   
3. 
   Estimates of Quantifiable costs – Options C1, C2, C3, C4, C5, C6 and C7
   
4. 
   List of relevant federal, state and territory legislation.
   

5. 
   List of standards with negligible incremental cost impact.
   

6. 
   Number of cattle annually affected by welfare standards under Option B by state and territory
   

7. 
   Full list of public consultation questions.
   

Appendix 1: Hourly time costs for farm workers

A primary resource requirement of activities undertaken in relation to cattle and dairy farming is labour time. The purpose of this appendix is to capture the dollar cost per hour of this resource which will be used in later appendices as relevant to estimate impacts of various Standards with respect to time requirements on stakeholders.

A1.1 – Estimation of hourly time cost for farm workers

It is understood, that the actual cost of time may vary between businesses, between individuals in a business and from day to day. However due to lack of specific data, time costs are estimated by taking average weekly earnings for ‘Farm, forestry and garden workers’¹⁶⁴, as shown in Table 1 column (a). Average weekly earnings are then annualised and converted to May 2012 values using an 8.35% growth in average wages between 2010 and 2012¹⁶⁵ in column (c).

Table A1.1 – Estimated hourly charge out rate for farm workers by State and Territory – 2012-13¹⁶⁶

Jurisdiction	May 2010 Average weekly earnings (a)	May 2010 Annual earnings (b) = (a) x 52	May 2012 annual earnings (c) = (b) + [(b) *8.35%]	Projected on-cost multiplier (d)	Overhead cost multiplier (e)	No. weeks worked per annum (f)	No. hours worked per week (g)	Hrly Rate (h) = (c)/{(f)* (g)}*(d)* (e)^167
NSW	$843	$43,836	$47,496	1.19	1.5	44	38	$51
VIC	$971	$50,492	$54,708	1.17	1.5	44	38	$57
QLD	$851	$44,252	$47,947	1.15	1.5	44	38	$49
SA	$817	$42,484	$46,031	1.18	1.5	44	38	$49
WA	$922	$47,944	$51,947	1.18	1.5	44	38	$55
TAS	$1,091	$56,732	$61,469	1.18	1.5	44	38	$65
NT	$544	$28,288	$30,650	1.21	1.5	44	38	$33
ACT	$764	$39,728	$43,045	1.2	1.5	44	38	$46

The projected on-cost multiplier in column (d) represents salary on-costs of superannuation, payroll tax, Fringe Benefits Tax (FBT) and workers compensation by state and territory. Leave loading is already incorporated in annual earnings in column (c).Each of the projected on-cost multipliers reflects the ratio of salary on-costs to total earnings within the state and territory as noted in 2002-03¹⁶⁸. The projection is based on the annual increase of this ratio between 1993-94 and 2002-03, which varies for each of the states and territories. Other salary related on-costs are considered in column (f) – the number of weeks worked per annum (44), which takes account of an average of two weeks of sick leave and two weeks of public holidays plus four weeks of annual leave. The 38-hour working week [column (g)], is based on the guarantee of maximum ordinary hours in the Australian Government Workplace Relations Act.

The overhead cost multiplier in column (e) incorporates non-salary related costs such as a vehicle and computer. This multiplier is based on a guidance note from the Victorian Competition and Efficiency commission, which states,

The Australian Vice–Chancellor’s Committee guidance to universities on bidding for research funding suggests multipliers of 1.52 for on-costs and 1.4 for non-laboratory infrastructure costs (excluding other direct, non-salary costs). This suggests that an overhead multiplier of at least 1.5 may be appropriate.¹⁶⁹

The hourly charge out rate is then calculated by dividing annual earnings by the product of the number of weeks worked and hours per week and then multiplying this by the overhead cost and on-cost multipliers:

Hourly charge out rate = annual earnings/ (working weeks x hours per week) x on-cost multiplier x overhead cost multiplier