Chart of accounts

Explanatory guide
Disclaimer

Whilst all reasonable efforts have been taken to ensure the accuracy of
the Chart of Accounts Explanatory Guide, use of the information contained
herein is at one’s own risk. To the fullest extent permitted by Australian law,
Dairy Australia disclaims all liability for any losses, costs, damages and the
like sustained or incurred as a result of the use of or reliance upon the
information contained herein, including, without limitation, liability stemming
from reliance upon any part which may contain inadvertent errors, whether
typographical or otherwise, or omissions of
any kind.

© Dairy Australia Limited 2015. All rights reserved.

ISBN 978-1-925347-04-3
Contents

Purpose2

Introduction3

Explanation of terms  4

Descriptions5

Key physical number 6

Options7

GST selection 8

Appendix – Standard chart of accounts 9

Dairy Australia standard chart of accounts | Explanatory guide  1

 Purpose
This explanatory guide has been
developed as a resource to assist
in understanding and interpreting
the Standard Chart of Accounts
developed by Dairy Australia to be
utilised by the Australian
Dairy Industry.
The aim of this document and the
Standard Chart of Accounts (SCoA)
is to drive consistency across the
Australian dairy industry in how we
discuss, describe, calculate and
report farm business performance.
There has been a significant amount
of work undertaken by a number of
groups within the Australian dairy
industry over a long period of time
and the culmination of this work and
the assessment of previous
documents has resulted in this
guide and the Standard Chart of
Accounts being developed.
Some of the major contributors over
recent years have been Murray Dairy
through the development of their
Financial Records Guide and the
Department of Economic
Development, Jobs, Transport and
Resources (DEDJTR) formerly known
as the DPI, through the Dairy Farm
Monitor Project (DFMP) that started
in the 2006/07 financial year.
2
More recently the work undertaken
to establish DairyBase, the new Dairy
Australia web based Farm Business
Management tool, has resulted in a
further review of terminology utilised
in farm business management and
the logical flow of income and
expenses as it is interpreted in
management accounts.
The original Financial Records Guide
for Dairy Farms was produced by
Murray Dairy for all dairy farmers to
provide assistance with establishing
and maintaining a Chart of Accounts
following the introduction of the GST
in 2000.
It was designed to enable dairy
farmers to improve financial and farm
management decisions through the
better use of financial data to monitor
costs or benchmark performance.
The original guide was developed
in response to a group of dairy
farmers seeking assistance
regarding the establishment of their
Chart of Accounts.
In response, Murray Dairy
established a Reference Team
comprised of dairy farmers,
consultants, extension officers,
accountants and rural counsellors to
provide dairy farmers with information
on establishing and maintaining a
Chart of Accounts. Murray Dairy
subsequently revised and updated
the guide to bring it into line with
changes in the Dairy Industry.
With the recent release (May, 2015)
of DairyBase, the Financial Records
Guide for Dairy Farms has again
been updated to ensure consistency
with DairyBase and the Dairy Farm
Monitor Project.
This version of the Guide provides a
complex Chart of Accounts, which
should satisfy the requirement of the
most detailed record keeper and a
truncated version providing the
minimum requirement to complete a
DairyBase analysis.
Introduction

Whilst one of the main aims of a The Standard Chart of Accounts

Standard Chart of Accounts is to has not been established as a rigid
drive consistency across the tool to prescribe the exact setup of
Australian dairy industry in how we farm accounts on all dairy farms, it
discuss, describe, calculate and has merely been developed as a
report farm business performance it guide to the way a dairy farmer can
also meets many other goals. keep financial records but, if used
correctly, will give consistency in
The Standard Chart of Accounts
record keeping. As well as
enables dairy farmers to manage the
providing farmers with data to make
flow of financial information through
informed financial and farm
their business and establish an
management decisions, the Chart of
efficient system for paying bills and
Accounts will allow farmers to
complying with Australian tax
effectively benchmark their
regulations. Whilst ensuring tax
business. The use of “benchmarks”
compliance, the Standard Chart of
by some sectors of the dairy
Accounts can also be converted to
industry can only be accurate if
management accounts with relative
each business doing the
ease to enable farmers to make
comparisons have put their income
informed decisions in their
and expenses in the same category
businesses. The management
in their financial recording system.
accounts enable farmers to
complete end of year and
comparative analysis on their
business by ensuring a consistent
approach to the allocation of
financial information and financial
terminology used within the Dairy
industry. It will also enable
conversion to a regular cashflow
and could be utilised for budgeting
within businesses.

Dairy Australia standard chart of accounts | Explanatory guide  3

 Explanation of terms
The Dairy Industry, including,
farmers, service providers and the
computer software packages used
by all these groups use various
terms to refer to accounts listed
under the headings of Income and
Expenses. For the purpose of this
guide we have used the terms
“Category”, “Sub-Category” and
“Sub-sub Category”.
For example, under the heading
Expenses there are Categories of
Herd, Shed and Feed. These
categories may have sub-categories
eg. Feed, sub Agistment. Sub-
categories may also be expanded
into Sub-sub-categories
eg. Agistment, sub Cartage etc.
4
For example if you paid $200.00 to
W. Black for cartage of heifers to
agistment you would enter this in
Cartage which is a Sub-sub
category of Agistment which is a
Sub category of Feed which is one
of the main expense Categories.
Where sub or sub-sub categories
exist, the income or expense must
be entered in the lowest sub
category. For example if you have
sub-sub categories within Herd
Costs and you were entering a Herd
Test expense then you need to enter
it under the sub-sub category of
Herd Test, rather than directly under
the sub-category of AI & Herd Test
of the Category of Herd Costs.
Descriptions
The description section is the key to
the correct placement of income
and expenses in the accounts.
Read the descriptions carefully and
become familiar with the concept of
why each expense should be in a
particular category.
It is important to be specific about
the allocation of expenses.
Categories such as “Hardware”,
“Tools”, “Farm Supplies”, and
“Miscellaneous” should not be used
at all. The items that have previously
been put in these should be thought
about carefully and put into the
category that they actually relate to.
This will mean that merchandise
store accounts/invoices must be
broken down expense by expense
and allocated accordingly. You must
ask yourself “what did I do with this
item?” and allocate it accordingly.
For example, poly pipe fittings and a Similarly with cartage the expense
ball valve for a water trough would needs to be allocated to the
go into OVERHEADS sub REPAIRS sub-category to which the expense
& MAINTENANCE sub-sub applies. For example, the cartage
STOCK WATER. for dry cows transported to
agistment should be allocated to
Other expenses that are usually not
sub-sub category Dry Cows under
allocated properly are “Contractors”
sub category Agistment within the
and “Cartage/Freight”.
Purchased Feed Costs category.
If a payment is made to a
To enable accurate evaluation of farm
“contractor”, then you need to work
business performance the guide
out what that contractor was paid to
separates “farm income”, defined as
do and then allocate this expense
“income generated by or directly
accordingly. For example, if the
related to the operation of the farm
contractor repaired fences then the
business”, from “off-farm income”.
expense goes into sub-sub ‘R&M
It also separates “farm expenses”,
Fencing’, under Sub category
defined as “expenses directly related
‘Repairs and Maintenance’ within
to the operation of the farm
the ‘Overheads’ Category. If the
business”, from “off-farm expenses”.
contractor baled hay then the
expense goes to sub-sub category
Hay Making, under sub category
Hay & Silage Making within the
Home Grown Feed Costs category.
Dairy
Dairy Australia
Australia standard
standard chart
chart of
of accounts
accounts || Explanatory
Explanatory Guide 
guide  5
 Key physical number
Whilst collecting the financial
information is the most important
component of a standard chart of
accounts there are particular income
and expense categories that require
physical details for tax purposes and
others where a quantity makes farm
business analysis a more
straightforward process. There is a
column in the standard Chart of
Accounts for the Key Physical
Number whereby users can input
these numbers both for tax
purposes and any further analysis of
their business.
6
For tax purposes dairy farmers are
required to include the number of
animals for both livestock sales and
purchases as part of the overall
livestock trading account whilst also
recording the litres purchased for
diesel for the diesel fuel rebate.
To enable any future farm business
analysis it is also recommended that
users collect physical details for feed
and fertiliser whereby this information
can be collected as tonnes dry
matter, tonnes wet or in bales for
feeds such as silage and hay.
It is also worthwhile collecting data
such as megalitres for irrigation and
the number of animal’s agisted.
Options
Dairy farmers can choose the layout
of the Chart of Accounts that best
suits their business. It allows farmers
to utilise the basic level 1 format
with all the major categories or to
step through to Level 3 which has a
detailed breakdown of each
category, sub- category and
sub-sub category. Alternatively,
farmers can also tailor the Chart of
Accounts specifically to suit their
business by electing to have
sub-sub categories for some
expenses whilst only have sub
categories for others.
For example, you may elect to `
have sub-sub categories (Level 3)
for all the Home Grown and
Purchased feed costs whilst only
having sub categories (level 2) for
Herd and Shed Costs. The end
result must still be that the expense
or income concerned is in the
sub-category that aligns with the
correct category outlined in the
standard Chart of Accounts.
For the Guide to be an effective
record-keeping and/or
comparative analysis tool, the
main “Categories and sub-
categories” should not be varied.
Dairy Australia standard chart of accounts | Explanatory guide  7
 GST selection

The Standard Chart of Accounts

has a suggested GST description
for each sub-category. More than
one description is suggested when
the GST application differs
according to the individual
circumstances e.g. farm leases.
Changes to GST legislation and
application may occur. It is
important to confirm your GST
descriptions with your Accountant
before allocating tax codes to your
Chart of Accounts. A Y in the GST
column indicates that GST is
applicable where an N indicates the
income or expense is GST free.
A D indicates the income or
expense item may incur GST or
may be GST free depending on
individual circumstances.

8
 Dairy business standard chart of accounts
Version 1.07
Key Physical
GST Number Description
1.0 Income All income associated with dairy farming activities
Gross Milk Income – i.e Butterfat and Protein income, step-ups, retrospective payments and colostrums sales. Record other items on factory milk statement in appropriate income or expense categories or sub-categories not
1.1 Milk Income Y Quantity
here under milk income

1.2 Livestock Sales Y Number Sales of stock from normal herd management practices, not from one-off sales such as major reductions as these are considered as CAPITAL INCOME sub SALES-BREEDERS.
1.2.1 Calves Y Number Bull calves, beef cross calves, heifer calves not kept for herd replacements
1.2.2 Culls Y Number Culled stock, chopper cows, heifers, bulls etc. culled and sold for slaughter
Beef cattle, horses, bulls, breeding stock e.g. bulls, cows, heifers if they are regularly sold to others for use for breeding, milking, sires not stock from a major reduction sale or dispersal sale as these sales would be under
1.2.3 Other Livestock Sales Y Number
CAPITAL INCOME

1.3 Feed Sales Y Quantity Sales of feed produced within the dairy business
1.3.1 Hay Sales Y Quantity Income from hay sales
1.3.2 Silage Sales Y Quantity Income from silage sales
1.3.3 Other Feed Sales Y Quantity Income from other feed sales such as grain
1.4 Water Sales Y ML Sales of water from normal water management practices, not from one-off sales such as major reductions as these are considered as CAPITAL INCOME
1.4.1 Temporary Y ML Sales of temporary water
1.4.3 Other Water Sales Y ML Income from any other water sales
1.5 Other Farm Income D Various sources of farm income resulting from farm operations
Interest received on farm operating bank accounts and short term deposits with bank accounts or factories and any other interest money received because of the operation of the farm business, not interest on off-farm or non-
1.5.1 Interest N
farm investments and personal bank account interest as these go in NON FARM INCOME

1.5.2 Contracting Y Income earned off-farm using the business farm machinery, equipment e.g. hay mower, hay roller, hay/silage processing
1.5.3 Milk Company Dividends D Factory, co-op dividends, not dividends from off farm or non-farm investments
1.5.4 Incentives N Trade incentives, discounts on purchases, vat purchase incentives
1.5.5 Leases D Cows, farming land, machinery etc. that is leased out to others
1.5.6 Rebates - Fuel D Fuel rebates
1.5.7 Rebates - Fertiliser D Fertiliser Rebates
1.5.8 Rebates - Other D Other rebates, including Semen, Factory or Volume Charge rebates
1.5.9 Government Payments N Government payments in the form of subsidies and support payments
1.5.10 Other Farm Income D Any other farm income resulting from farm operations such as farm house rental

2.0 Herd Costs All expenses relating to maintaining herd quality and assisting herd management
2.1 AI & Herd Test Y All Artificial Insemination and Herd Test expenses
2.1.1 AI/Semen Y Artificial Insemination technician, semen, embryo, ET drugs, gloves, nitrogen for semen tank, vet services, fees and drugs associated with ET work, CIDR, PG and induction
2.1.2 Herd Test Y Herd test charges
2.1.3 Other Breeding Costs Y Tags for calves, heifers and cow identification, freeze branding of all classes of stock
2.2 Animal Health Y All Animal Health expenses including drugs and veterinary fees but excluding any AI expenses
Drench, drench guns, lice and parasite treatment and prevention – minerals and vitamins injected to all classes of stock – vaccines, injections (usually preventative) drugs and other treatments not restricted to purchase from
2.2.1 Drugs Y
vets including teat dip

2.2.2 Veterinary Fees Y Vet visits, operations, drugs restricted to purchase from a Veterinary Surgeon or requiring Veterinary sanction
2.3 Calf Rearing Y Any expenses incurred for feeding, treating and maintaining calves up to the time they are weaned
2.3.1 Calf Feed Y Grain, pellets and growth promotants, for calves up to the time they are weaned
2.3.2 Milk Powder Y Milk powder and milk additives for calves up to the time they are weaned
2.3.3 Bedding Y Rice hulls or other bedding material
2.3.4 Other Calf Rearing Costs Y Drenching and other calf shed treatments for calves up to the time they are weaned

2.4 Other Herd Costs Y Short term lease of cows, heifers and bulls for periods of less than 12 months as these have a different tax implication to leases in excess of 12 months. Registrations, transfers, classifications, photos, show entry fees

3.0 Shed Costs All expenses relating to milk harvesting

3.1 Shed Power Y Electricity, gas fuel for heating, cooling lighting milking
3.2 Dairy Supplies Y Chemicals, detergents used for washing, sterilizing, cleaning, fly control. Inflations, rubber tubes, filter socks, strainers, vacuum pump oil, isolated purchases of cups, claws and bowls etc.
3.2.1 Consumables Y Chemicals, detergents used for washing, sterilizing, cleaning, fly control. Filter socks, strainers, vacuum pump oil, isolated purchases of cups, claws and bowls etc.
3.2.2 Rubberware Y Inflations, rubber tubes
3.3 Other Shed Costs Y

4.0 Home Grown Feed Costs All costs associated with growing feed on land under control of the business
4.1 Fertiliser Y Quantity All NPKS and trace element fertiliser products and compounds including blending, mixing, cartage, bin hire and spreading
4.1.1 PKS Y Quantity All PKS and trace element fertiliser products and compounds including blending, mixing, cartage, bin hire and spreading
4.1.2 Urea Y Quantity All urea including cartage, bin hire and spreading
4.1.3 Nitrogen Blends Y Quantity All nitrogen blends including blending, mixing, cartage, bin hire and spreading
4.1.4 Lime & Gypsum Y Quantity Lime & Gypsum including blending, mixing, cartage, bin hire and spreading
4.1.5 Effluent Spreading/Disposal Y Costs associated with spreading effluent
4.1.6 Other Y Other fertiliser products
All costs associated with irrigation in the dairy business but not new structures used in new land forming and pasture establishment as these major expenses should be entered into CAPITAL EXPENSES. Maintenance of
4.2 Irrigation Y
Irrigation structures and physical channel cleaning should be entered in OVERHEADS sub REPAIRS & MAINTENANCE sub IRRIGATION

Dairy Australia standard chart of accounts | Explanatory guide  9

10
Dairy business standard chart of accounts
Version 1.07
Key Physical
GST Number Description
4.2.1 Water Authority Rates N Water rates for supply and drainage relating to farm irrigation water
4.2.2 TWE Purchases D Purchase of temporary water transfers in addition to water right or allocation
4.2.3 Pumping Costs - Electricity Y Electricity costs for pumping irrigation water
4.2.4 Pumping Costs - Diesel Y Diesel costs for pumping irrigation water
4.2.5 Other Irrigation Costs Y Any other costs incurred to run the irrigation excluding Repairs and Maintenance
4.3 Hay & Silage Making Y Costs for on-farm hay and silage making, including twine, plastic wrap and contractors
4.3.1 Hay Making Y Cutting, twine, net wrap, pressing, baling, hay inoculants, cartage on hay and freight on twine etc.
4.3.2 Silage Making Y Harvesting, transport, plastic wrap, pressing, baling, wrapping, chopping, covering, compacting contractors for silage, silage inoculants, cartage of silage purchases and freight on plastic covering etc
4.3.3 Crop Harvesting Y Harvesting and storage of crops including crop purchases and cartage and freight etc
4.3.4 Other Hay & Silage Making Costs Y Any other costs incurred in making hay and silage on farm
Costs associated with pasture renovation and cropping such as seed, weed & pest and contractor costs. Not new land forming and the associated new pasture establishment as these major expenses should be entered
4.4 Pasture & Cropping Y
under CAPITAL EXPENSE sub DEVELOPMENT

4.4.1 Seed Y Seed purchases

4.4.2 Weed & Pest Control Y Chemicals and contractors for the control of weeds and pests in pastures, roadsides and channels. Chemicals, baits, ammunition, contractors used to control vermin
4.4.3 Other Pasture & Cropping Costs Y Ploughing, ripping, discing, power harrowing, seedbed preparation, seed for crop and pasture sowing and pasture renovation, direct drilling contractor, oversowing and planting
4.5 Fuel & Oil Y Fuel used for vehicles, equipment, motors used for feed production
4.5.1 Diesel Y Litres Diesel costs except those for irrigation
4.5.2 Unleaded Y Unleaded petrol
4.5.3 Gas Y Gas
4.5.4 Oil/Grease Y Oil, grease
4.6 Other Feed Costs Y Includes any other feed costs that have not been included elsewhere here. These may include the cost of washing out or altering grain contracts and cartage costs not already accounted for

5.0 Purchased Feed Costs All purchased feeds including cartage, feed additives and agistment
5.1 Concentrates Y Quantity Purchased concentrates (pellets, grain mixes etc)
5.1.1 Concentrate 1 Y Quantity Grain, grain mixes and pellets
5.1.2 Concentrate 2 Y Quantity Legumes and protein meals
5.1.3 Concentrate 3 Y Quantity
5.1.4 Concentrate 4 Y Quantity
5.1.5 Concentrate 5 Y Quantity
5.1.6 Concentrate 6 Y Quantity
5.2 Purchased Fodder Y Quantity Purchased fodder costs inluding hay and silage
5.2.1 Purchased Fodder 1 Y Quantity Hay purchases
5.2.2 Purchased Fodder 2 Y Quantity Silage Purchases
5.2.3 Purchased Fodder 3 Y Quantity Haylage Purchases
5.2.4 Purchased Fodder 4 Y Quantity
5.2.5 Purchased Fodder 5 Y Quantity
5.2.6 Purchased Fodder 6 Y Quantity
5.3 ByProducts Y Quantity Purchased byproducts
5.3.1 ByProduct 1 Y Quantity Brewers grain
5.3.2 ByProduct 2 Y Quantity Citrus Pulp
5.3.3 ByProduct 3 Y Quantity Other byproduct
5.3.4 ByProduct 4 Y Quantity
5.4 Other purchased feeds Y Any other purchased feed costs
5.4.1 Other purchased feed 1 Y Additives
5.4.2 Other purchased feed 2 Y
5.4.3 Other purchased feed 3 Y
5.4.4 Other purchased feed 4 Y
5.5 Agistment Y Number Agistment and short term land leases (less than 12 months), contract rearing of all classes of stock after weaning, cartage to and from agistment
5.5.1 Milkers Y Number Agistment or the purchase of standing feed grazed by the milking herd including cartage to and from the agistment should all be entered in this category
5.5.2 Dry Cows Y Number Agistment or the purchase of standing feed grazed by dry cows including cartage to and from the agistment should all be entered in this category

5.5.3 Replacement Y Number Agistment, contract rearing, contract growing, weight gain agistment or the purchase of standing feed grazed by the replacements including cartage to and from the agistment should all be entered in this category

5.5.4 Other Y Number Agistment, contract rearing, contract growing, weight gain agistment or the purchase of standing feed grazed by the other livestock including cartage to and from the agistment should all be entered in this category

6.0 Employed Labour Cost Permanent labour and casual labour. Note: Contractors and contracting should be entered under the category that relates to the work carried out
6.1 Wages N Permanent farm employees either full-time or part-time and casual farm employees
6.2 Sharefarmer D Share paid to sharefarmer
6.3 Contract Labour/Relief Milker D Payments to contract or relief milkers
6.4 Protective Clothing Y Apron, gloves, Gum boots, waterproof clothes etc
6.5 Staff Amenitities Y Includes things like tea and coffee and light meals provided to staff
6.6 Training & Development D Fees for courses, seminars, workshops etc. that relate to the farm business (including travel, meals, accommodation, materials) for permanent and casual employees
 Dairy business standard chart of accounts
Version 1.07
Key Physical
GST Number Description
6.7 Superannuation N Superannuation contributions for permanent and casual employees
6.8 Workcover Y Workcover for permanent and casual employees
7.0 Repairs & Maintenance Y Repairs and maintenance on farm improvements and plant and equipment this does not include capital improvements which should be entered under CAPITAL EXPENSES
7.1 R&M Buildings Y Maintenance of farm buildings and structures. The fixtures that would be considered to be part of the farm when/if it is sold
7.2 R&M Fencing Y Fencing contractors, yards, gates, insulators, gate tapes, fence reels, posts, wire, yard mesh, hinges, gate chains etc
7.3 R&M Houses Y Repairs to farm houses
7.4 R&M Irrigation Y Maintenance of irrigation structures and channel cleaning. Note:Structures used in new landforming and pasture establishment should be entered under CAPITAL EXPENSE sub DEVELOPMENT.
7.5 R&M Dairy Y Vat repair, platform repair, sludge pump repair
7.6 R&M Plant & Equipment Y Repairs and maintenance to farm equipment, plant and machinery
7.7 R&M Water Supply Y Repairs and maintenance of water troughs, poly pipe, pipe and trough fittings, pressure pumps for stock water supply
7.8 R&M Tracks and Laneways Y Repairs and maintenance to tracks and laneways
8.0 Other Overheads Other Overheads Incurred to run the farm business
8.1 Administration Y Administration expenses related to the operation of the farm business including items such as accounting, consulting, phone and office expenses
8.1.1 Accounting Fees Y Professionals used for accounting advice in relation to the farm business
8.1.2 Bank Fees N Bank generated charges, account keeping fees, reference fee, stop cheque fee. Costs related to borrowing funds for farm use – Fees to establish farm related loans
8.1.3 Computer Expenses Y Computer expenses, including anti-virus software
8.1.4 Consultants Y Professionals used for financial,business management and production advice in relation to the farm business
8.1.5 Filing Fees Y Filing fees, including those paid to ASIC
8.1.6 Internet Costs Y Email and internet
8.1.7 Legal Fees Y Legal fees in relation to the farm business
8.1.8 Printing, Postage & Stationery Y Stationery, postage, printing, stamps, postal charges, post office box rental, envelopes, paper supplies, pens, pencils etc. for use in farm office
8.1.9 Subscriptions & Journals Y Farm Journals, Rural Newspapers and Magazines etc
8.1.10 Telephone Landlines Y Office and home landline
8.1.11 Telephone Mobiles Y Mobile phones
8.2 Motor Vehicle Expenses Y Motor vehicle expenses
8.2.1 Fuel & Oil Y Fuel and oil not directly related to the conservation or feeding of feed
8.2.2 R&M Servicing Y Repairs and maintenance on vehicles
8.2.3 Registrations N Registrations on farm vehicles
8.2.4 Vehicle Insurance Y Vehicle Insurance
8.3 Miscellaneous Overheads Miscellaneous Overheads including items such as general freight, industry levies, livestock selling expenses and farm insurance
8.3.1 Cleaning & Waste Disposal Y Charges relating to rubbish removal and pickup
8.3.2 Dog Keep Y Food, drugs, veterinary attention, collars, chains for working dogs.
8.3.3 Farm Insurance Y Farm insurance package including stock, plant, fodder, buildings, sickness, accident and trauma insurance. Portion of house insurance as determined by your accountant
8.3.4 General Expenses (Misc.) D General farm expenses that do not fit within another expense code
8.3.5 General Freight & Cartage Y General freight & cartage not including to and from agistment which should be entered under Agistment
8.3.6 Hire of Plant & Equip Y Hire of plant and equipment
8.3.7 Industry Levies N DA levy, UDV Levy,
8.3.8 Livestock Selling Expenses D Government levies, Yard dues and Cartage
8.3.9 Rates N Shire rates and charges, domestic water rates where applicable. Note: Irrigation water rates are entered in FEED sub IRRIGATION sub WATER AUTHORITY RATES

9.0 Finance Costs Expenses relating to financing the operation of the business
Note: Interest – separate sub-categories should be set up for each loan or hire purchase. There should be a corresponding sub-category for the Principal portion for each loan or hire purchase under the CAPITAL EXPENSE
9.1 Interest N
category

9.1.1 Interest on Loans N Interest on major additions and/or alterations to the land, buildings, livestock, plant and equipment
Interest charged for overdraft on farm operating account, often shown as “debit interest” on bank statement and interest on any other bank accounts but not interest on loans as these are entered in their own category under
9.1.2 Interest on Overdraft N
INTEREST ON LOANS

9.1.3 Other Interest N Include any other interest paid here

9.2 Leases D Leases over 12 months on land, water, livestock, plant & equipment
9.2.1 Leases Plant & Equipment D Leases on plant & equipment
9.2.2 Leases Livestock D Leases on livestock
9.2.3 Leases Land & Water D Leases on land and water

10.0 Capital Transactions Capital costs on items that are part of the management and development of the farm business
10.1 Livestock Purchases Y Number Livestock purchases
10.1.1 Milkers Y Number Cow purchases
10.1.2 Replacements Y Number Replacement purchases
10.1.3 Bulls/Other Y Number Bulls or other stock purchases
10.2 Other Capital Purchases Y
10.2.1 Other Capital Purchase 1 Y Improvements: Major additions and/or alterations to the dairy building and dairy plant
10.2.2 Other Capital Purchase 2 Y Plant, Equipment & Vehicles: Tractor, mower, slasher etc. for use on the farm. Milk vat purchase. Farm related vehicles
10.2.3 Other Capital Purchase 3 Y Development: Land forming, recycle systems, pasture establishment and the associated irrigation structures, pumps, motors etc. Any major farm development or works

Dairy Australia standard chart of accounts | Explanatory guide  11

12
Dairy business standard chart of accounts
Version 1.07
Key Physical
GST Number Description
10.2.4 Other Capital Purchase 4 Y Land: Land purchased for use by the farm business
10.2.5 Other Capital Purchase 5 Y Water: HRWS,LRWS or bore water purchases
10.2.6 Other Capital Purchase 6 Y Share Equity: Factory share purchases, usually taken directly from milk receipts
10.2.7 Other Capital Purchase 7 Y Other capital purchases that relate to the dairy farm business
10.2.8 Farm Management Deposits N Cash amount despoited into FMDs
10.2.9 Farm Management Deposits - Withdrawals N FMDs that become available for use
10.2.10 Capital Introduced N Capital permanently introduced from non farm business activities
10.3 Capital Sales Y Sale of items that have a permanent impact on the balance sheet
10.3.1 Land Y Sale of land utilised in the dairy farm business
10.3.2 Permanent Water Y Sale of water utilised in the dairy farm business
10.3.3 Equipment /Machinery Y Sale of plant and equipment used in the dairy farm business
Loan repayments. Note: Loan payments/Hire Purchases – if a loan or hire purchase exists on a capital expenditure item below, a separate sub-category should be set up for the Principal portion and defined as Principal or
10.4 Loan Principal Repayments N HP. e.g. HP DAIRY PLANT or PRINCIPAL LAND. There should be a corresponding sub-category for the Interest portion for each loan or hire purchase under the FINANCE sub INTEREST category. If a loan, the Loan
Funds Received should also similarly be entered in CAPITAL INCOME sub LOANS in a corresponding sub-category name

10.4.1 Principal Payments - Loans N Principal repayments on loans

10.4.2 Principal Payments - HP's or CM's N Principal repayments on Hire Purchase or Chattel Mortgages

11.0 Non Farm Income N

11.1 Wages N Wages, salaries earned by family members working off-farm.
11.2 Rent N Rent received
11.3 Personal Income N Personal income
11.4 Non Farm Dividends N Dividends from off farm investments

12.0 Non Farm Operating Expenses Personal expenses that are not tax deductible.
12.1 Drawings 1 N
12.1.1 Living N
12.1.2 Education N
12.1.3 Insurance N
12.1.4 Medical N
12.2 Drawings 2 N
12.3 Drawings 3 N
12.4 Other Non Farm Expenses

13.0 Tax N
13.1 GST N GST amounts
13.2 PAYG N Pay as you go tax
13.3 PAYG Withheld N Taxheld PAYG for permanent and casual employees
13.4 EOY N End of year tax
Dairy business standard chart of accounts –
Example 1 – Detailed Breakdown
Key Physical
GST Number

1.0 Income

1.1 Milk Income Y Quantity

1.2 Livestock Sales Y Number

1.2.1 Calves Y Number
1.2.2 Culls Y Number

1.2.3 Other Livestock Sales Y Number

1.3 Feed Sales Y Quantity

1.4 Water Sales Y ML
1.5 Other Farm Income D

1.5.1 Interest N

1.5.2 Contracting Y
1.5.3 Milk Company Dividends D
1.5.4 Incentives N
1.5.5 Leases D
1.5.6 Rebates - Fuel D
1.5.7 Rebates - Fertiliser D
1.5.8 Rebates - Other D
1.5.9 Government Payments N
1.5.10 Other Farm Income D

2.0 Herd Costs

2.1 AI & Herd Test Y
2.1.1 AI/Semen Y
2.1.2 Herd Test Y
2.1.3 Other Breeding Costs Y
2.2 Animal Health Y

2.2.1 Drugs Y

2.2.2 Veterinary Fees Y

2.3 Calf Rearing Y

2.4 Other Herd Costs Y

Dairy Australia standard chart of accounts | Explanatory guide  13

 3.0 Shed Costs
3.1 Shed Power Y
3.2 Dairy Supplies Y
3.2.1 Consumables Y
3.2.2 Rubberware Y
3.3 Other Shed Costs Y

4.0 Home Grown Feed Costs

4.1 Fertiliser Y Quantity
4.1.1 PKS Y Quantity
4.1.2 Urea Y Quantity
4.1.3 Nitrogen Blends Y Quantity
4.1.4 Lime & Gypsum Y Quantity
4.1.5 Effluent Spreading/Disposal Y
4.1.6 Other Y

4.2 Irrigation Y

4.3 Hay & Silage Making Y

4.4 Pasture & Cropping Y

4.4.1 Seed Y
4.4.2 Weed & Pest Control Y
4.4.3 Other Pasture & Cropping Costs Y
4.5 Fuel & Oil Y
4.5.1 Diesel Y Litres
4.5.2 Unleaded Y
4.5.3 Gas Y
4.5.4 Oil/Grease Y
4.6 Other Feed Costs Y

5.0 Purchased Feed Costs

5.1 Concentrates Y Quantity
5.1.1 Wheat Y Quantity
5.1.2 Canola Meal Y Quantity
5.1.3 Lupins Y Quantity
5.1.4 Classic Dairy Pellets Y Quantity
5.2 Purchased Fodder Y Quantity
5.2.1 Vetch Hay Y Quantity
5.2.2 Oaten Hay Y Quantity
5.2.3 Maize Silage Y Quantity
5.3 ByProducts Y Quantity
5.4 Other purchased feeds Y
5.4.1 Minerals Y

14
 5.5 Agistment Y Number
5.5.1 Milkers Y Number
5.5.2 Dry Cows Y Number

5.5.3 Replacement Y Number

6.0 Employed Labour Cost

6.1 Wages N
6.2 Sharefarmer D
6.3 Contract Labour/Relief Milker D
6.4 Protective Clothing Y
6.5 Staff Amenitities Y
6.6 Training & Development D
6.7 Superannuation N
6.8 Workcover Y
7.0 Repairs & Maintenance Y
7.1 R&M Buildings Y
7.2 R&M Fencing Y
7.3 R&M Houses Y
7.4 R&M Irrigation Y
7.5 R&M Dairy Y
7.6 R&M Plant & Equipment Y
7.7 R&M Water Supply Y
7.8 R&M Tracks and Laneways Y
8.0 Other Overheads
8.1 Administration Y
8.1.1 Accounting Fees Y
8.1.2 Bank Fees N
8.1.3 Computer Expenses Y
8.1.4 Consultants Y
8.1.5 Filing Fees Y
8.1.6 Internet Costs Y
8.1.7 Legal Fees Y
8.1.8 Printing, Postage & Stationery Y
8.1.9 Subscriptions & Journals Y
8.1.10 Telephone Landlines Y
8.1.11 Telephone Mobiles Y
8.2 Motor Vehicle Expenses Y
8.3 Miscellaneous Overheads
8.3.1 Cleaning & Waste Disposal Y
8.3.2 Dog Keep Y
8.3.3 Farm Insurance Y
8.3.4 General Expenses (Misc.) D
8.3.5 General Freight & Cartage Y

Dairy Australia standard chart of accounts | Explanatory guide  15

 8.3.6 Hire of Plant & Equip Y
8.3.7 Industry Levies N
8.3.8 Livestock Selling Expenses D
8.3.9 Rates N

9.0 Finance Costs

9.1 Interest N

9.2 Leases D

10.0 Capital Transactions

10.1 Livestock Purchases Y Number
10.1.1 Milkers Y Number
10.1.2 Replacements Y Number
10.1.3 Bulls/Other Y Number
10.2 Other Capital Purchases Y
10.3 Capital Sales Y

10.4 Loan Principal Repayments N

11.0 Non Farm Income N

11.1 Wages N
11.2 Rent N
11.3 Personal Income N
11.4 Non Farm Dividends N

Non Farm Operating

12.0 Expenses
12.1 Drawings 1 N
12.1.1 Living N
12.1.2 Education N
12.1.3 Insurance N
12.1.4 Medical N
12.2 Drawings 2 N
12.3 Drawings 3 N
12.4 Other Non Farm Expenses

13.0 Tax N
13.1 GST N
13.2 PAYG N
13.3 PAYG Withheld N
13.4 EOY N

16
Dairy business standard chart of accounts –
Example 2
Key
Physical
GST Number

1.0 Income

1.1 Milk Income Y Quantity

1.2 Livestock Sales Y Number

1.3 Feed Sales Y Quantity
1.4 Water Sales Y ML
1.5 Other Farm Income D

1.5.1 Interest N

1.5.3 Milk Company Dividends D

1.5.6 Rebates - Fuel D

2.0 Herd Costs

2.1 AI & Herd Test Y
2.2 Animal Health Y
2.3 Calf Rearing Y

2.4 Other Herd Costs Y

3.0 Shed Costs

3.1 Shed Power Y
3.2 Dairy Supplies Y
3.3 Other Shed Costs Y

4.0 Home Grown Feed Costs

4.1 Fertiliser Y Quantity

4.2 Irrigation Y

4.3 Hay & Silage Making Y

4.4 Pasture & Cropping Y

4.5 Fuel & Oil Y

4.6 Other Feed Costs Y

Dairy Australia standard chart of accounts | Explanatory guide  17

 5.0 Purchased Feed Costs
5.1 Concentrates Y Quantity
5.2 Purchased Fodder Y Quantity
5.3 ByProducts Y Quantity
5.4 Other purchased feeds Y
5.5 Agistment Y Number

6.0 Employed Labour Cost

6.1 Wages N
6.4 Protective Clothing Y
6.7 Superannuation N
6.8 Workcover Y
7.0 Repairs & Maintenance Y
8.0 Other Overheads
8.1 Administration Y
8.1.1 Accounting Fees Y
8.1.2 Bank Fees N
8.1.3 Computer Expenses Y
8.1.4 Consultants Y
8.1.5 Filing Fees Y
8.1.6 Internet Costs Y
8.1.7 Legal Fees Y
8.1.8 Printing, Postage & Stationery Y
8.1.9 Subscriptions & Journals Y
8.1.10 Telephone Landlines Y
8.1.11 Telephone Mobiles Y
8.2 Motor Vehicle Expenses Y
8.3 Miscellaneous Overheads
8.3.1 Cleaning & Waste Disposal Y
8.3.2 Dog Keep Y
8.3.3 Farm Insurance Y
8.3.4 General Expenses (Misc.) D
8.3.5 General Freight & Cartage Y
8.3.6 Hire of Plant & Equip Y
8.3.7 Industry Levies N
8.3.8 Livestock Selling Expenses D
8.3.9 Rates N

9.0 Finance Costs

9.1 Interest N

9.2 Leases D

18
10.0 Capital Transactions
10.1 Livestock Purchases Y Number
10.2 Other Capital Purchases Y
10.3 Capital Sales Y

10.4 Loan Principal Repayments N

11.0 Non Farm Income N

11.1 Wages N
11.2 Rent N
11.3 Personal Income N
11.4 Non Farm Dividends N

Non Farm Operating

12.0 Expenses
12.1 Drawings 1 N
12.2 Drawings 2 N
12.3 Drawings 3 N
12.4 Other Non Farm Expenses

13.0 Tax N
13.1 GST N
13.2 PAYG N
13.3 PAYG Withheld N
13.4 EOY N

Dairy Australia standard chart of accounts | Explanatory guide  19

Dairy Australia Limited ABN 60 105 227 987
Level 5, IBM Centre
60 City Road, Southbank VIC 3006 Australia
T + 61 3 9694 3777 F + 61 3 9694 3701
E enquiries@dairyaustralia.com.au
dairyaustralia.com.au

0357 | Aug 2015