Budgets are used to demonstrate the feasibility of a project, its value, and to justify why it is necessary.
Budget categories for research projects include direct and indirect expenses.
The University establishes a certain percentage of indirect costs when funding research. Grant Services can help you determine the right figure.
Direct costs are costs that are essential to achieving a research grant's objectives. These costs are directly related to the research goals of the grant.
Direct cost examples:
- Personnel, e.g. Research assistants, PhD student stipends, and personnel costs. Be sure to include salary increases (superannuation, payroll) as well as on-costs. The salary and step should match the skill set and task required by the role. Refer to the position descriptors of the University Enterprise Agreement.
- Equipment, maintenance, travel (include why you are travelling and for what length of time)
- Teaching Relief
- Other than the previously mentioned options, (for example) Consumables).
Indirect Costs are costs incurred by the institution that support and benefit research at the institution. These costs are not directly related the grant objectives, although they are required for research.
Indirect cost examples:
- Building maintenance and operations (e.g. Libraries, laboratories, meeting rooms, IT (such a computer access, specialist applications, databases, and secure cloud storage), etc.
- Insurance, legal and Financial Services
- Hazardous Waste Disposal
- Research services and compliance with regulatory and research regulations
Except:
- Grants that are awarded on a national basis, like those offered by ARC and NHMRC. All 'Category One' schemes are included.
- ACNC Register of Registered Charities (Opens in New Window)
- Grants from another University
- Indirect costs) are excluded or limited by funding bodies in their rules or guidelines. Indirect costs are excluded or limited by funding bodies in their guidelines and rules
- Scholarships for internships
- Official Western Partnership projects
- Grants for travel or grants to use facilities (e.g. Endeavour fellowships, AINSE awards
- Western will waive its indirect cost portion on projects below $100,000.
The indirect cost formula is applied after determining the direct cost.
e.g. Costs direct = $50,000 + (indirect expense % number) = Project cost
Support in cash and kind
You must include in your budget all tangible and intangible assets.
In kind support refers to any contributions made by a third party that are not monetary. Western Sydney University and external parties can both contribute in-kind.
- Staff (e.g. The project does not pay for the time that the staff has spent on the project.
- non-staff/infrastructure (e.g. You may use lab space in order to complete the project. However, you will not be paid directly by the project.
- Indirect costs
Budgeting for personnel and salaries
Direct Costs are On-Costs. These costs include superannuation (retirement), sick leave, payroll taxes, etc. Budgets must include these costs.
Click here to learn more about Western On-Costs
Please check the Office of Human Resources for the most recent salary figures.
An example:
You are the lead chief investigator (CI) for a project that is not funded by Category 1 funding bodies. You dedicate 0.4 full-time equivalents (FTE) to the project = 2 working days per week. Academic Level F, Step 2 pays you $188,944 a year. Your salary can be calculated as follows, including the 28% cost of living.
0.4 x 0.28 * 188,944 = 21161.73
Your salary is a direct expense of research and should be included in the budgeting. Its value should be $11,161.73.
Calculate the amount of money you will need for each project year. Be sure to take into account the Step Increases in Multi-Year Grants.
The assistant may be hired full-time at HEW, Step 3 for a period of seven weeks. You hire an assistant for $48.97 per hour, including 25% leave loading. Add 16.5% of the on-costs.
48.97 * (35 x 7) = 11.997.65
11,997.65 multiplied by .165 gives a result of 1,979.50.
1,979.50 + 11,997.65 = 13,977.15
The total cost is $13,977.15.
Note 1: A casual employee can only be employed for a maximum of 6 months.
Note 2: Some schemes stipulate a specific maximum funding rate for the salary on costs. Australian Research Council funds on costs at a 30% level, so this is the figure you should use.
