Question on Internal Hire rates:
“Does anyone use a standard rate for internal hire?
Our council runs a system where I can easily pull a report showing hours a piece of equipment is booked and then journal the missing hours at the end of the month. But, we are always having to follow up and this is time consuming. Ideally, I would like to have all the plant and fleet on standing journals then the work groups would know how much they have to budget for the hire of internal plant each year and would force each work group to review the amount of plant and equipment needed to run their operations.
How do other organisations capture plant and equipment bookings when the employee is hired through a labour hire company?”
“IPWEA FLEET's approach to establishing internal hire rates is that the rate is based on the actual cost to hold and operate the asset (this rate may be standardised across an asset type). The IPWEA on-line Whole of Life Cost tool can be used to establish hire rates along with replacement reserve allocation. IPWEA FLEET is always available if assistance is required in accessing the WOL Cost tool.”
T: 1300 416 745