Calculation of hourly labour rates
| HR=AE/(AW×AH)×ON×OH23 | |
|---|---|
| HR | Hourly rates |
| AE | Average annual earnings |
| AW | Average number of weeks worked per annum. We used the 45 weeks per year as suggested by the Australian Bureau of Statistics. This includes 4 weeks for annual leave, 2 weeks for State and Federal public holidays and 1 week for sick leave |
| AH | Average weekly working hours for full-time adult workers. This varied by State, with three States having a 38 h week and remaining State using 38.1 h per week |
| ON | On-cost multiplier to account for non-earning salary costs such as superannuation, workers compensation payments, payroll tax and fringe-benefit tax. We assumed a rate of 17.8%, that is, a multiplier of 1.178 |
| OH | Overhead multiplier to account for additional overheads such as building costs, and administrative support. We assume a multiplier of 1 versus, the recommended rate of 1.25, since we are measuring incremental costs |