Explanation:

The training budget should be part of your business plan.

If you don't have a training budget, developing one will help you work out what kind of training you are able to offer your staff. Make sure to include all training costs — direct and indirect — in your budget.

The direct costs of training may include:

• the training provider's fee
• the cost of training materials, if they are not included in the course fee
• travel and accommodation costs for participants
• training materials.

The indirect costs of training may include:

• participants' wages, including all on-costs (e.g. tax, superannuation and workers' compensation)
• the cost of temporarily replacing staff, or the cost of productivity loss while they are being trained
• the cost of management time spent setting up the required training
• any administrative costs and utilities related to the training activity.

The cost of training will depend on the type of training you offer. Consider the benefits of different training options, rather than just choosing the least expensive. For example, external training is likely to be more expensive initially, but it may offer greater long-term rewards, such as improved productivity and staff retention.