Tip truck owner drivers

Understanding business costs

The tip truck rates and costs schedules set out the typical operating costs of an owner driver business, based on the type of tip truck a driver operates. They include variable costs such as fuel and tyres, and fixed costs such as registration, finance and insurance.

Tip truck owner drivers and hirers can use the schedule to gain a better understanding of:

• the factors that affect operating costs
• the amount a driver could expect to earn as an employee doing the same kind of work

Rates and costs schedules do not set minimum rates of pay. They aim to help owner drivers and hirers understand the typical operating costs of an owner driver business. Hirers and owner drivers can use them to assess whether an offer of work will:

• cover operating costs
• provide a good return for the driver's labour
• provide a good return on the owner driver’s investment

Rates and costs schedules are also available for other road freight vehicle types.

Minimum pay rates for tip trucks on Government projects

Tip truck owner drivers working on construction projects funded by the Victorian Government are entitled to minimum rates of pay.

The minimum hourly rates are based on the rates and costs schedules. These rates apply to all tip truck owner drivers engaged on Government-funded construction projects awarded on or after 27 August 2018. They apply whether drivers are engaged directly by the contractor or indirectly through one or more subcontractors.

For more information, read the Department of Treasury and Finance's Fact Sheets for Public Construction Procurement.

Obligations to provide information booklet and schedules

Hirers that engage a tip truck owner driver to perform excavation work in the building and construction industry (regardless of how long they will be engaged for) must make sure they give the tip truck owner driver:

• the Owner Driver Information Booklet
• the rates and costs schedule that relates to their vehicle

Hirers must do this at least 3 business days before the owner driver is engaged.

This information does not need to be provided for any subsequent engagements with the same hirer, unless the information booklet or rates and costs schedules are revised. The relevant rates and costs schedule will need to be provided again if the time between engagements is more than 12 months.

If the tip truck owner driver is engaged through a freight broker, then the freight broker must provide the relevant rates and costs schedule and information booklet instead.

Hirers and freight brokers may face penalties if they fail to meet these obligations. Learn more about the legal obligations of hirers and freight brokers under the Owner Drivers and Forestry Contractors Act 2005.