Page 4 - An Overview for Regis Executives

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DO YOU KNOW THE COST OF C
How much will it rise over the next 5 years, if you
The first concept to understand is how much your cleaning will cost over the next 5 years
if you don’t change anything
• This is an example of 20
Aged Care facilities with 100 FTE (full time equivalent) cleaners
• With $240,000 in consumables approximately 95% of their costs are labour or labour related
• Based on a CPI of only 3% this group will incur an increase in cost of $3.4M over the next 5 years
CPI
INCREASE IN LABOUR COST
LABOUR
CONSUMABLES
TOTAL ANNUAL COSTS IF NO CHANGE INCREASE OVER LAST YEAR
ACC INCREASE IF WE CHANGE NOTHING
An increase of over $3.4 million over the next 5 years
• It is highly likely that increases in labour costs will be much higher than this with many requiring to pay 10-15% more to attract staff
• With these increases compounding it is essential that you start this year, allowing you to make much more headway over the years ahead.
3% 5%
2024
$6,864,000 $240,000
$4,81 $7,104,000 6,040
FY25
$205,920 $7,069,920 $252,000 $7,321,920
$217,920
FY26
$212,098 $7,282,018 $264,600 $7,546,618 $224,698
NO CHANGE
$217,920
$442,618
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