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A labour hire cost calculator shows why the hourly charge rate is higher than the worker's pay rate, and whether a quote you hold is fair for the work. This free Excel workbook builds the rate up from the wage, casual loading, superannuation, WorkCover, payroll tax and the agency's own costs, then compares the result with engaging the same casual workers yourself.
It uses current Victorian and New South Wales payroll tax rates and the current super guarantee rate, with the source of each rate on the Rates sheet.
Enter your details below and we will send the Excel workbook to your inbox. Change the blue cells to your own award rate and quote and the green cells update. Prefer to work in Google Sheets instead? Make a copy of the calculator and the same formulas carry across.
What an hourly labour hire charge rate is made of
Our process page explains that a Chandler Personnel quote is hourly and includes casual loading, payroll tax, WorkCover and superannuation. The calculator shows how those layers stack up. In the example, a $28.00 base rate becomes $35.00 with a 25 percent casual loading. Super at 12 percent adds $4.20, WorkCover at an example 2 percent adds $0.70 and payroll tax at the Victorian rate of 4.85 percent adds about $1.90. With an example $1.50 of other agency costs, the estimated cost reaches about $43.30 an hour before margin. Those pay and WorkCover figures are placeholders, not Chandler rates.
What is inside the calculator
Calculator: role and pay inputs, the quoted charge rate, engagement size, and direct engagement costs. It outputs the cost build-up, the estimated margin per hour and as a share of the charge rate, and total cost for labour hire against direct hire.
Charge Rate by Margin: a table showing the charge rate that results from margins between 10 and 30 percent.
Rates: the super guarantee, casual loading and state payroll tax rates, each with a source link and the date it was checked.
Read Me: how to use it, what it leaves out and how payroll tax is treated.
How to read the comparison with direct hire
The calculator adds recruitment and advertising cost, onboarding and admin time, payroll and other host costs, and an allowance for covering absences. It then shows the hidden cost per hour at which direct engagement would break even with your quote. If your own hidden costs per hour are above that figure, labour hire costs less. If they are below it, direct engagement costs less on these inputs. It does not value flexibility, such as the ability to scale a crew up or down within a day, which is a large part of why sites use agencies. For more on that trade-off, read our guide to hiring or overtime for peak seasons.
What it leaves out
Penalty rates, overtime, allowances, public holiday rates, leave loading and claims history are not included. If they apply to your shift, add them to the base hourly rate. Payroll tax only applies once total wages pass the tax-free threshold, so confirm your position with your accountant before relying on the direct hire figure.
Related Resources
- hiring or overtime for peak seasons
- blue-collar award rates in Sydney and Melbourne
- how a Chandler Personnel quote works
- Victorian payroll tax rates
Frequently Asked Questions
What is included in a labour hire charge rate?
The wage, casual loading where it applies, superannuation, WorkCover, payroll tax, and the agency's own costs and margin. The agency also runs payroll and leave administration, so you do not have to.
Why is the charge rate higher than the worker's hourly pay?
The worker's pay is only one layer. Super is currently 12 percent of qualifying earnings, WorkCover and payroll tax add further costs, and the agency covers its recruitment, compliance and administration.
Does payroll tax apply to super?
Yes. The State Revenue Office in Victoria and Revenue NSW both treat employer super contributions as taxable wages. The calculator applies payroll tax to wages plus super.
Does this show Chandler Personnel's margin?
No. The figures in the file are illustrative placeholders. The calculator estimates a margin from the quote and the costs you enter, so it can be used with any agency's quote.
Can I use it for roles with penalty rates?
Yes, but add the penalty-inclusive hourly rate to the base rate cell, because the calculator does not model penalties itself.
A quote is easier to judge once you can see its parts. Download the calculator, enter your award rate and the quote you hold, and see where the margin and the hidden costs sit. If you would like a quote built the same way for your roles, request staff from Chandler Personnel.
