Monday, 29 January 2018 14:07

A new cost calculator tool that will assist motor body repair businesses across Western Australia transparently identify their costs and a charge out hourly rate for their business, was launched today by the MTA WA.

The tool, which has been independently analysed by national business advisory and accountancy firm BDO, and examined by the Australian Tax Office (ATO), enables all motor body repair business owners / management to capture all of the costs associated in running their businesses. The tool also includes helpful worksheets for Profit and Loss, Tradespersons costs, and has the added potential of highlighting areas of business operations where further efficiencies can be made and/ or improvements to productivity.

MTA WA CEO, Steve Moir, said the cost calculator would help West Australian motor body repair businesses not only identify their actual costs of doing business, but assist in determining a fair, reasonable and transparent ‘shop’ or business charge out hourly rate that was verifiable, defendable and in accordance with sound business and accounting practice.

‘Too many motor body repair businesses, who have heavily invested in training, equipment, tooling, and in meeting the demands of a rapidly changing automotive industry, are being forced to accept rates and charges demanded by work providers that simply do not reflect the costs of their business and placing them at a significant disadvantage or even jeopardizing their future’ Mr Moir said.

‘Most work providers to the motor body repair industry have their own calculators or processes that are required to be applied in order to secure work. These tools or processes rarely capture the complete picture and contain elements or parameters designed to produce a pre-determined charge rate outcome. This leads to different motor body repair businesses, with different capabilities or services, differing levels of staff and costs, being subjected to a rate for their services which are not reflective of their actual costs – even though they may have already made significant improvements, generated efficiencies and productivity enhancements to be competitive,’ he added.

Mr Moir said MTA WA had worked with its motor body repair members, its national association, the Motor Trades Association of Australia (MTAA), Australian Motor Body Repairers Association (AMBRA) and other stakeholders including prominent accountancy firms in developing the Cost Calculator.

‘We expect that use of the Cost Calculator will improve transparency over costs and charges and help MTA WA to defend its members rights to fair and reasonable compensation reflective of the input costs and not some determined rate by a work provider,’ Mr Moir said.

This is one of a range of initiatives being progressively rolled out by MTA WA to not only improve business acumen during a period of unprecedented change, and sustained pressure from dominant market participants, but also ensure consumer confidence, and consumer choice of repairer,’ Mr Moir added.

The calculator will be distributed and be available to MTA WA motor body repair member businesses from this Friday morning, 2 February 2018.

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