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The Department of Health Motor Vehicle Fleet PolicyAugust 2009
Department of Health Government of Western Australia
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Document Control
All efforts are made to ensure that this policy accurately reflects the WA Government’s Fleet Policy and Guidelines - August 2008.
Date Reviewed : December 2008
Date Last Updated : August 2009
Next review date : March 2010 (subject to State Fleet requirements)
Changes this version : Part Review
Author : Facilities and Operations Branch, Business Unit
Sections updated: Section No Section Title Change Date Changed 5.3.3 Environmental factors Removed December 20085.4 Fuel Efficiency Policy NEW December 20085.7.2 Vehicle Accessories Additions December 20085.8 Short Term Hire Vehicles NEW December 20089 Senior Officer Vehicle
Scheme (SOVS) Additions December 2008
Appendix 3 Adjusted contribution rate for part time officers in the SOVS
NEW December 2008
All Forms Removed December 2008ALL References to WA Health Changed to Department for
Health December 2008
5.3.2 Vehicle Justification NEW 6.3 Record of usage: Log
Books Are to maintained in ALL vehicles
May 2009
3 Vehicle Justification NEW July 20096.3 Record of usage: Log
Books Are to maintained for 3 months for all GVS and SOVS vehicles.
August 2009
8 GVS Will no longer be offered unless demonstrated business need
August 2009
8 GVS Definition of Entry level August 2009 Note: All requests for changes to this policy manual are to be made through the Manager, Business Unit, Development Division, Department of Health (DoH), on (08) 9222 4162.
Approved by and effective on the date of the signature below:
Name : Dr Peter Flett Signature :
Position: Director General, DoH Date :
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Table of Contents
Vehicle Justification ..........................................................................................................2 1 Definitions ..................................................................................................................5 2 Introduction ................................................................................................................6 3 Legislative base .........................................................................................................6 4 Exemptions.................................................................................................................6 5 Strategic Fleet Management .....................................................................................7
Step 1 – Get the composition right.......................................................... 7 Step 2 – Get the utilisation right.............................................................. 7 Step 3 – Get the information management right ..................................... 8
5.1 Fringe Benefits Tax............................................................................................9 5.2 Strategic Fleet Management Plan.....................................................................9 5.3 Vehicle Composition........................................................................................10
5.3.1 Vehicle Selection Factors ..................................................................10 5.3.2 Vehicle Justification ...........................................................................11
5.4 Fuel Efficiency Policy (Environmental factors) .............................................11 5.5 VEHICLE SAFETY POLICY ..............................................................................12
5.5.1 Duty of Care / Occupational Safety.......................................................12 5.6 Monitoring and Reporting ...............................................................................13 5.7 Vehicle Specification .......................................................................................13
5.7.1 Vehicle Type (Make, Model and Colour)...............................................13 5.7.2 Vehicle Accessories..............................................................................14
Functional Items.................................................................................... 14 Safety Items .......................................................................................... 14 Standard Items...................................................................................... 14 Extra Accessories ................................................................................. 15
5.7.3 Exceptions ............................................................................................15 5.8 Short Term Hire Vehicles ................................................................................15 5.9 Vehicle Utilisation ............................................................................................16 5.10 Penalties ...........................................................................................................16 5.11 Fair Wear and Tear Standards ........................................................................17
6 Operational Fleet Management...............................................................................18 6.1 Vehicle Management........................................................................................18
6.1.1 Registration .........................................................................................18 6.1.2 Insurance .............................................................................................18 6.1.3 Maintenance ........................................................................................19
6.2 Pooling ..............................................................................................................19 6.3 Records of Usage.............................................................................................19 6.4 Records Management......................................................................................20
6.4.1 Fleet Management Records ...............................................................20 6.4.2 Analysis and Reporting / Internal Cost Assignment .......................20 6.4.3 Internal reporting ................................................................................21 6.4.4 Reporting to the Fleet Steering Committee ......................................21
6.5 Lease Payments ...............................................................................................21 6.6 Fair Wear and Tear Criteria .............................................................................21
7 Vehicle Use...............................................................................................................22
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7.1 General Conditions of Use ..............................................................................22 7.1.1 Additional Requirements ...................................................................22 7.1.2 Approved Drivers ................................................................................22 7.1.3 Passengers ..........................................................................................22 7.1.4 Vehicle Use ..........................................................................................22 7.1.5 No Smoking .........................................................................................22 7.1.6 Recording Systems ............................................................................22 7.1.7 Traffic/Parking Infringements ............................................................23 7.1.8 Security................................................................................................23 7.1.9 Insurance .............................................................................................23 7.1.10 In the Event of Loss or Accident .......................................................23 7.1.11 Home Garaging ...................................................................................23 7.1.12 Most Direct Route ...............................................................................24 7.1.13 Operational Availability ......................................................................24 7.1.14 Maintenance - Routine and Periodic .................................................24 7.1.15 Parking/Security..................................................................................24
8 Government Vehicle Scheme (GVS) – Private Use...............................................25 9 Senior Officer Vehicle Scheme (SOVS) .................................................................28 Appendix 1 WA Government Fleet Steering Committee Framework.....................31 Appendix 2 Ordinary Plate Procedure.........................................................................33 Appendix 3 Definition of PSA Level 8 (PSGA Level 8)/ HSU Level 11 and above or
SRN Level 10 ..............................................Error! Bookmark not defined. Appendix 5 Adjusted contribution rate for part time officers in the SOVS ...................34
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1 Definitions
Chief Executive Includes both Area Chief Executives and Divisional Executive Directors. This also refers to the delegation of authority by these officers to their appointed representative during times when they are absent from their work due to authorised leave.
“Best Buys Vehicle Selection List” This is a list of vehicles available to DoH developed in line with the Department of Treasury and Finance (State Fleet) Fleet Guidelines.
sgFleet Government vehicle fleet managers selected by DoH to manage their vehicles from the Common Use Contract arrangement ‘Motor Vehicle Fleet Services (CUA 021803 - mandatory - expires 31 July 2007)’.
StateFleet Part of the Department of Treasury and Finance, StateFleet manage the lease arrangement for the Whole of Government vehicle fleet.
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2 Introduction
The objective of this policy is to provide a framework for improved management of all Western Australia Health passenger and light commercial vehicles. This policy will:
• Ensure that motor vehicles are selected, acquired, and used in ways that provide the best possible support to DoH operations;
• Optimise the efficiency and effectiveness of the fleet to achieve both operational and financial benefits.
• Ensure consistency with the department’s strategic direction and accurately reflect the WA Government’s Fleet Policy and Guidelines.
Health services are required to comply with the requirements of this policy unless an appropriate exemption has been granted in writing by the WA Government Fleet Steering Committee Framework’.
3 Legislative base
The Western Australian Government Fleet Policy is to be applied consistently with the requirements of all relevant legislation, policies and contractual arrangements as determined from time to time.
The WA Government’s Fleet Policy and Guidelines are developed in line with the relevant legislation, policies and contractual arrangements. In complying with these fleet guidelines, the Department of Health Motor Vehicle Fleet Policy also meets the same legislative base. This includes:
• Public Sector Management Act 1994; • Financial Management Act 2006; • Treasurer’s Instruction 411; • Treasurer’s Instruction 812; • State Supply Commission Policies; • Occupational Safety and Health Act 1984 and • Road Traffic (Vehicle Standards) Regulations 2002.
4 Exemptions
The WA Government’s Fleet Policy and Guidelines for vehicle selection will not apply where a vehicle is:
• Accessed as part of an officer’s total employment cost pursuant to a determination of the Salaries and Allowances Tribunal (SAT). Vehicles provided as a SAT entitlement are private vehicles and are not governed by this policy.
• Provided to non-SAT Area Chief Executive’s as remuneration in accordance with the Public Sector Management (General) Regulations 1994.
• Accessed by employees under private leasing arrangements such as novated leasing.
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5 Strategic Fleet Management
Agencies should generally have a Strategic Fleet Management Plan in order to establish and maintain the most cost effective balance of fleet composition and utilisation to achieve their operational needs.
This section provides a structured approach vehicle management and outlines significant considerations to achieve and maintain the most effective balance of vehicle composition and utilisation to meet DoH’s operational needs.
There are three key steps in DoH’s strategic fleet management process:
1. Get the composition right; 2. Get the utilisation right; and 3. Get the information management right.
Step 1 – Get the composition right
The first step is to define the operational needs, and then match the fleet size and mix to those needs. A number of factors need to be considered, these are:
• Operational requirements
What are the current and future operational needs?
Are there alternative ways to meet those needs, such as short-term vehicle hire, taxi vouchers, etc?
• Fleet size
Can it be reduced?
Can a new or replacement vehicle be justified?
• Fleet mix
Is there an appropriate mix of vehicles to adequately meet varying operational requirements and optimise resale?
Is there a structured process that considers all aspects of vehicle specification, additional accessories and the impact these can have on lease rates, operating costs, resale and whole of life cost?
Step 2 – Get the utilisation right
Once the number and mix of vehicles that are required to meet operational requirements have been established, a strategy is required to make the best use of those vehicles to minimise costs. Health services can rationalise their fleet and pooling arrangements by:
• Maximising use
Maximising the use of all vehicles can have significant financial benefits and reduce the size of vehicle pools, and minimising the department’s Fringe Benefits Tax (FBT) liability (see Fringe Benefits Tax).
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• Offsetting FBT liability
Home garaging of Q-plated vehicles shall only occur where:
• Safe and secure parking on Health business premises is unavailable; or
• Home garaging is required for operational purposes.
In both instances, prior written approval must be granted by the Area Chief Executive.
Alternately, converting Q-plated vehicles to ordinary plated vehicles, for which employees pay a contribution in return for private use, can also significantly offset (or even eliminate) the FBT liability. The Government Vehicle Scheme (GVS) – Private Use and Senior Officer Vehicle Scheme (SOVS), both provide an effective mechanism to achieve this.
Step 3 – Get the information management right
To get the best value from their fleet, Fleet Managers / Co-ordinators need to understand their current fleet in order to review its performance and to plan for future fleet needs. To do this, they will need:
• Current and relevant information about their fleet; and • The relevant expertise to make informed decisions about their fleet
composition and utilisation.
• Recording information DoH Fleet Managers / Co-ordinators need to capture relevant information through the use of an asset register, vehicle booking and logbooks, a record of GVS participation, vehicle justification and Fringe Benefits Tax paid.
These records must be maintained either on a corporate register or on an official departmental file and listed on the departmental record system, for audit purposes.
• Getting the right advice Support and advice to assist DoH to strategically manage its fleet are available through the sgFleet and/or State Fleet
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• Planning and reviewing
Since operational needs and fleet arrangements change over time, DoH Fleet Managers / Co-ordinators need to review their fleet requirements continually and carefully plan for their future needs.
The Fleet Steering Committee will periodically request information about DoH’s plans and assess compliance with the Government policy through audits and surveys.
5.1 Fringe Benefits Tax
A fringe benefit is a 'payment' to an employee, but in a different form to salary or wages.
According to the fringe benefits tax (FBT) legislation, a fringe benefit is a benefit provided in respect of employment. This effectively means a benefit provided to somebody because they are an employee, such as when the employer allows an employee to use a work car for private purposes.
FBT applies when there is either private or commuting use.
Maximising the kilometres travelled per vehicle can substantially reduce the affect of FBT. Health services should manage the vehicle use across the fleet so that the average kilometres per vehicle exceed the FBT threshold points of:
• 15,000; • 25,000; or • 40,000 kilometres per year
If vehicles are consistently registering low kilometres travelled, or below the FBT threshold points, action must be taken to manage this such as reassigning these vehicles to other business areas where vehicles are travelling in excess of the required kilometres.
5.2 Strategic Fleet Management Plan
Area Health Services shall have a Strategic Fleet Management Plan in order to achieve and maintain the most effective balance of vehicle composition and utilisation to meet their operational needs.
Developing a Strategic Fleet Management Plan will allow Area Health Services to:
• Define the operational needs for its fleet; • Regularly assess their existing fleet composition and see how well it matches
those requirements; • Consider and implement where applicable, mechanisms to modify their fleet to
better meet those needs; and • Monitor and review performance and effectiveness of the fleet in line with
changing operational requirements.
A Strategic Fleet Management Plan allows Area Health Services to set targets and monitor their fleet’s performance. The plan should demonstrate progress in:
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• Analysing operational vehicle use; • Minimising whole of vehicle life costs; • Maximising pooling arrangements; and • Rationalising fleet size.
The following key indicators should be included in a Strategic Fleet Management Plan:
Key Indicators Analyse Operational Vehicle Use
Minimise Whole of
Life Vehicle Costs
Maximise vehicle Pooling
Rationalise Fleet Size
Composition Sources and types of vehicle √
Categories and extent of vehicle usage √
Vehicle pooling √
Utilisation
Conversion to ordinary plates √
Log books √
Analysis and reporting √
Information Management
Average FBT paid per vehicle √
√ Primary key indicator
Secondary key indicator
5.3 Vehicle Composition
5.3.1 Vehicle Selection Factors
It is a Statefleet policy directive that:
• All DoH vehicles are to be leased through State Fleet, except where prior approval has been obtained from State Fleet to enter into an alternative arrangement.
It is a DoH policy directive that:
• All new or replacement vehicles are only to be selected from the “Best Buys Vehicle Selection List”;
• All new vehicles required to service operational needs, whether additional or replacement shall comply with the CO2 Emission Policy;
• “That all requests for additional or replacement vehicle be submitted with a business case to either the Chief Executives or the Director General for approval.”
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• All vehicles will have an Australian New Car Assessment Program (ANCAP) rating of 4 or greater;
• Where conditions or business needs require a larger capacity vehicle, requests must be supported by a business case and have the approval of the Area Chief Executive; and
• Where approval has been granted by the Area Chief Executive for a health service to acquire a six cylinder or commercial (4WD) vehicle, the selection shall be restricted to those six cylinder and 4WDs listed in the “Best Buys Vehicle Selection List”.
Vehicles may be added to or removed from the “Best Buys Vehicle Selection List” periodically, based on DoH’s strategic fleet requirements.
5.3.2 Vehicle Justification
Operational requirements shall be the primary consideration in the acquisition of additional or replacement vehicles and should not be replaced or acquired to provide vehicles for commuting or the GVS. Area Chief Executives will determine their fleet size based on availability of funds and operational requirements. Vehicles made available to SES members under the Senior Officers Vehicle Scheme (SOVS) are considered operational vehicles for the purpose of this policy. Adequacy of vehicle numbers is reflected in usage; each vehicle should have a reasonable operational usage rate. Vehicles with low operational usage may not be required or may be able to be deployed more effectively.
Replacement of existing operational vehicles is not automatic. When a vehicle is due for replacement, a review of the operational needs for which that vehicle is to be used must be conducted, taking into account environmental, operational and financial factors.
All requests for additional and replacement vehicles must have the approval of the Director General. Requests must be supported by a business case and be submitted to the Area Health Service Fleet Manager / Co-ordinator for advice and then the Area Chief Executive for approval and forwarding to the Director General for final approval.
5.4 Fuel Efficiency Policy (Environmental factors)
This new requirement within the policy is to ensure ongoing improvements in fuel efficiency; the four cylinder requirement has been replaced with a specified emission target which is expressed in grams of CO2 per kilometre (g/km).
The Australian Greenhouse Office; "National Greenhouse and Energy Reporting System’s measurement techniques of CO2 emissions will be used to calculate the g/km emissions.
The g/km measure will be applicable regardless of fuel type and takes account of the different emission characteristics of petrol, LPG and diesel. The policy focuses on fuel-efficiency and will be indifferent to the vehicle technology used to achieve it. Slightly different benchmark caps will apply for different types of vehicles and will be based on the fuel consumption ratings that manufacturers provide for their vehicles.
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The following CO2 emission (g/km) benchmark caps will apply for all vehicles ordered from 1st October 2008.
Passenger Vehicles
Passenger vehicles with a CO2 emissions rating not exceeding 215 g/km may be selected
Sports Utility Vehicles (Suv’s)
Agencies are required to select SUV vehicles with a CO2 emissions rating not exceeding 225 g/km.
Light Commercial Vehicles
Light Commercial vehicles have no specific benchmark cap due to the many different categories of vehicles. However agencies should consider an appropriately fuel-efficient vehicle, subject to Fit for Purpose, Safety and Whole-Of-Life-Cost factors.
LPG Vehicles
Where a vehicle with a CO2 emission rating above the benchmark cap is required, agencies should seriously consider LPG powered models. LPG models may offer a cost effective, low emission alternative.
Exception
Where there is a need for a vehicle with a higher CO2 emission rating than that listed in the categories above, this can only be selected where there is a clear operational need for such a vehicle and is supported by a business case that has the approval of the Chief Executive.
5.5 VEHICLE SAFETY POLICY
5.5.1 Duty of Care / Occupational Safety
Agencies have a duty of care to provide a safe workplace. Standards for vehicle specification shall take into account DoH’s duty of care under the Occupational Safety and Health Act 1984 for the safety and security of vehicle occupants.
Fleet vehicles are considered an extension of the workplace and therefore should be as safe as is reasonable and practical. This policy promotes and supports selecting vehicles with enhanced safety characteristics. More detail about safety considerations is provided in 5.7 Vehicle Specification below.
Subject to fit-for-purpose requirements and other factors outlined above, this policy promotes and supports Safety equipment in vehicles form part of the ANCAP rating and this rating is listed in the “Best Buys Vehicle Selection List. Subject to fit-for-purpose requirements and other factors outlined in this policy, this policy promotes and supports:
• Restrictions on the use of dark window tinting, as this reduces driver visibility;
• The installation of ABS – Anti-skid Braking System;
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• Seatbelt reminder systems; • The installation of optional air bags; and • The consideration to safety aspects of vehicle colour in relation to the
vehicle’s working environment.
5.6 Monitoring and Reporting
DoH is required to report periodically to the Fleet Steering Committee on the application of the WA Government’s Fleet Policy and Guidelines.
The information provided will include information where:
• Exceptions to the policy have been applied, • The number of vehicles involved; and • Details of the business case, together with data on the extent to which the
make up of DoH’s fleet has changed in light of this policy.
Consequently, it is imperative that this monitoring and reporting information is captured by the Fleet Managers / Co-ordinators with regard to their existing fleet.
5.7 Vehicle Specification
Each Area Health Service should establish internal standards for the specification (type, accessories, safety) of vehicles. These standards shall be consistent with the WA Government’s Fleet Policy and Guidelines, and should take into account the operational requirements of the vehicle, occupant safety and the whole of life cost to the agency.
5.7.1 Vehicle Type (Make, Model and Colour)
Chief Executives are required to determine (in consultation with their Fleet Manager / Co-ordinator) the appropriate fleet mix and will select both Q-plated and ordinary plated vehicles based on operational needs, whole of life costs and overall value for money. The following should be considered:
• The Government fleet benefits from its diversity of vehicle makes, models and colours. Vehicles should be selected to cater for the range of the DoH’s business needs in a balanced way, and where possible, to optimise resale values.
• Vehicle colours should be restricted to light or non-metallic colours where possible to minimise refurbishment costs.
• Black vehicles are not permitted for either general pool, GVS or SOVS. • The whole of life operating costs include monthly lease charges or the
purchase price, running costs and decommissioning / refurbishment costs. • Seeking advice from sgFleet on the selection of the most effective lease term. • Restricting the purchase of new and replacement vehicles (including those
under the GVS ) to the Department of Health “Best Buys Vehicle List”, unless a business case justifying the reason(s) for not selecting a vehicle from this list has been approved by the Chief Executive.
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The final choice of vehicle from the “Best Buys Vehicle List” must be based on the lowest cost option that will meet operational needs.
• The preference of an officer who will be assigned private use of an ordinary plated vehicle under the GVS may be considered. Private use preferences however, shall be secondary to operational needs and the vehicle selection requirements above as participation in the GVS is a discretionary benefit.
5.7.2 Vehicle Accessories
Chief Executives have the discretion to approve the fitting of a range of accessories to meet genuine operational requires subject to the fit for purpose listed above, including safety.
Additional or optional equipment installed/fitted to government fleet vehicles shall not affect the manufacturers designed operation, change the intended purpose of the vehicle, or increase the potential for injury to pedestrians or vehicle occupants. Such equipment will be fitted to vehicles in a manner that minimises vehicle damage without compromising any compliance with applicable vehicle Australian Design Rules (ADR’s).
The following accessories may be selected to meet operational requirements:
Functional Items
• Bull bar (airbag compatible; Manufacturer supplies or recommended); • Tow bar; • Window tinting; • Additional spare tyre/s; and • Long-range fuel tanks.
Safety Items
• Electronic Stability Control (ESC)*; • Daytime running lights; • Active head restraints; • Cargo barriers in wagons etc, manufactured and fitted to comply with
Australian standards; • Cruise control; • First aid kit;
*This is a generic term for systems designed to improve a vehicle’s handling – individual manufacturers use a range of different marketing names.
• • Fire extinguishers; • • Communication equipment; and • • Winch (airbag compatible).
Standard Items
• Air conditioning; • Automatic/power steering; and • Mud flaps.
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Extra Accessories
Accessories that are essentially comfort items are unlikely to receive approval include:
• Sunroof; and • Leather seats.
SOVS participants, may fit a tow bar for private use, at no personal cost, subject to the Chief Executive’s approval. Alternatively, they may choose other accessories (e.g. child restraints), to the value of a tow bar for the specific make and model of the vehicle. The value of any such accessories must include the cost of installation. These items will be disposed of with the vehicle.
Health services should consider the whole of life costs associated with the addition of accessories, including fitting, removal and vehicle restoration costs, as well as the impact on lease rates.
It is important to understand the impact accessories may have on vehicle lease rates. Other than air conditioning, any accessory added to a vehicle is not usually included for the purpose of calculating the vehicle’s residual value. As a consequence, the total cost of the accessory has to be amortised or depreciated over the lease period.
It is not uncommon for a vehicle with accessories to incur a higher lease rate than a higher value vehicle with the accessories included as standard.
Hence, whilst the most basic model is generally recommended when selecting a vehicle, where a health service’s operational requirements necessitate inclusion of accessories, a higher specification vehicle that includes the required accessories as standard may represent better value for money. sgFleet is available to provide advice on this matter.
In the case of high value operational accessories, consideration should be given at the vehicle disposal stage to transferring them from one vehicle to another where possible. Accessories should only be added to DoH vehicles to meet genuine operational requirements.
5.7.3 Exceptions
• Roo Bar - This accessory will only be available for vehicles required to undertake regular travel to the country. This will be subject to approval of the Area Chief Executive; and
• SOVS assigned vehicles, where specific SOVS accessories conditions apply.
The Chief Executives may determine that certain additional safety features should be specified, (whether they are fitted as standard or as added extras) to meet particular operational requirements.
5.8 Short Term Hire Vehicles
Drivers of hired vehicles should ensure they are familiar with the vehicles’ guidelines for use and perform a brief visual check for any obvious faults prior to accepting the vehicle and embarking on their trip. All faults should be reported to the Car Hire Agency and, where necessary, be rectified before accepting the vehicle.
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5.9 Vehicle Utilisation
It is important that when selecting a new or replacement vehicle, Area Health Services select the preferred kilometre specification and vehicle lease term that is as close as possible to the expected usage (Refer to 5.1 Fringe Benefits Tax).
All leases will commence and terminate on the 15th day of the month in which the vehicle is either received or decommissioned.
DoH’s contracted fleet manager – sgFleet is required to recover the vehicle prior to lease expiry and undertake any necessary repairs in order to meet the fair, wear and tear criteria (Refer to 5.11 Fair Wear And Tear Standards). Following this, it will be transported for Auction.
5.10 Penalties
Financial penalties will apply where either the conditions of the Government Fleet policy are not met. Appropriate vehicle management should be applied at all times to avoid incurring such penalties.
• Early termination
Where a lease is terminated prior to the end of the term, the health service will be charged an adjustment equivalent to 85% of the remaining lease payments to the termination of the lease. State Fleet will calculate the adjustment at the termination of the lease and invoice the Area Health Service at this time.
• Failure to return vehicle at end of lease term
It is the responsibility of the Fleet Manager/Co-ordinator to ensure that the vehicle is available for collection at the end of the lease period or on a date nominated Fleet Manager/Co-ordinator as part of their strategic fleet management.
Where a vehicle lease is not terminated by the end of the lease term the Area Health Service is required to make a further monthly lease payment for each month or part thereof beyond the lease. Where the vehicle is not returned within three months of the end of the lease term, State Fleet is permitted to increase vehicle rental by up to 50%.
• Overuse adjustment
Where a vehicle exceeds its vehicle kilometre specification by more than 5,000 kilometres, the health service will be required to pay State Fleet an overuse adjustment comprising a fixed component of $200 plus a variable component of $0.07 per kilometre up to 80,000 kilometres and $0.10 per kilometre above 80,000 kilometres. State Fleet will calculate the overuse adjustment at the termination of the lease and invoice the health service at this time. Regular monitoring of fleet performance should give early notice of the risk of this penalty.
• Underutilisation
Where a vehicle fails to meet its kilometre specification, the Area Health Service will incur an increased FBT liability (Refer to Fringe Benefits Tax) where it evident that a vehicle is being underutilised, the internal fleet coordinator shall endeavour to relocate the vehicle within a high demand area.
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Health services should consult with sgFleet in determining their requirements as this will ensure that the cheapest lease term is selected.
• Late payments
Late lease payments will incur penalty charges.
5.11 Fair Wear and Tear Standards
Allowable “Fair Wear and Tear” includes
Body Damage Allowable “Fair Wear and Tear” includes superficial scratches and scuffs to bumpers; stone chipping on front and lower sides of the vehicle; and minor scratches to paint work provided that the surface of the paint is not broken.
Unallowable “Fair Wear and Tear” includes
Body Damage Scrapes and scratches where the paint surface is broken or paint discolouration on the vehicle exterior; dents or other impact damage; broken or cracked lenses; roof and gutter damage caused a by roof rack; and any other patent or visible signs of being involved in an accident.
Interior, Boot, Carpet and Trim Any tears, holes, rips and cuts to seats, interior trim, carpets and roof lining; oil, glue, chemicals or other substances which cannot be removed using propriety cleaners; and cigarette burns
Windshield Any cracks, scratches and stone chips such that the vehicle would not pass a roadworthiness test.
Vehicle Components and Accessories Missing, damaged or broken components.
General Any damage or potential damage arising from the failure to service and maintain the vehicle in accordance with the manufacturer’s recommendations or instructions.
Assessment State Fleet will be responsible for making the final determination as to what constitutes “Fair Wear and Tear”.
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6 Operational Fleet Management
6.1 Vehicle Management
6.1.1 Registration
All DoH vehicles shall be fitted with Government licence plates (Q-plates) unless they meet one of the following criteria:
• The vehicle has been approved by the Area Chief Executive for use in the Government Vehicle Scheme (GVS).
• The Treasurer has granted an exemption, e.g. there is an operational requirement for confidentiality, sensitivity or security reason and there are not enough Government Vehicle Scheme (GVS) vehicles to meet this need.
Vehicles meeting any of these criteria may be fitted with ordinary licence plates (Refer to Appendix 2 Ordinary Plate Procedure), Health services shall maintain appropriate documentation to support each ordinary plated vehicle being either:
• A copy of a completed SOVS/GVS - Application to Participate form approved by the Area Chief Executive; or
• A letter from the Fleet Steering Committee confirming that the Treasurer’s approval has been granted for security, surveillance or confidentiality purposes.
Requests for exemption should be directed to the Fleet Steering Committee and must justify the requirement and explain why it cannot be resourced through GVS ordinary plated pool of vehicles.
Any vehicles which are not part of the GVS but have been fitted with ordinary plates under an exemption for operational purposes (e.g. security, surveillance) shall not be used for private use unless expressly approved by the Area Chief Executive.
6.1.2 Insurance
Each Area Health Service shall ensure that adequate insurance cover is in place for all vehicles at all times. In the event of an accident or loss, health services shall comply with the procedures set down by the Insurer and, where applicable, in the Fleet Management Services Contract. Treasurer’s Instruction 812 mandates appropriate insurance cover for all Government motor vehicles. Unless exempted by the Treasurer, all health services are required to participate in the Insurance Commission of Western Australia (Risk Cover) process.
Health services shall ensure that appropriate procedures are followed in the event of an accident or loss. These procedures shall be in accordance with those specified by the Insurer and, where applicable, in the Fleet Management Services Contract. These procedures provide for the Fleet Manager (sgFleet) to assess the cost effectiveness of making an insurance claim and to process a claim or make other arrangements.
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6.1.3 Maintenance
All DoH vehicles shall be maintained in a safe, clean and roadworthy condition and consistent with manufacturers’ warranty requirements. Health services should ensure that all officers responsible for vehicles understand their obligations with respect to routine and periodic maintenance. Vehicles should be kept clean and tidy; refuelled when necessary, oil, coolant and tyres should be checked regularly, air conditioning run regularly, etc. Vehicles should be regularly serviced and maintained according to the manufacturer’s recommended specifications. Further information can be obtained from the Fleet Managers / Co-ordinators.
6.2 Pooling
All DoH vehicles (including those under the GVS) are to be made available for operational use during normal business hours unless specified otherwise by the Area Chief Executive.
Suitable booking out and recording systems should be maintained so that vehicle availability and location can be determined at any given time.
6.3 Records of Usage
Each Area Health Service shall maintain records of vehicle usage in order that DoH can:
• Measure the extent of operational and private use and calculate fringe benefits tax liability for all DoH vehicles (log books); and
• Identify the person responsible for the vehicle when an infringement, damage or loss occurs for all vehicles (booking-out system).
Log books are required to be maintained for the first three months for all operational vehicles (including GVS) and must measure both operational and commuting usage.
Log books for SOVS vehicles are required to be maintained for the first three months and must record all operational use. This will allow the more cost effective operational method of calculating FBT liability to be used. Other officers utilising these vehicles for operational purposes must record that usage in the log book. Log books are required for all government plated vehicles to measure and record the operational and commuting usage to calculate the least fringe benefits tax liability.
A booking-out system must be maintained for all operational use of vehicles so that infringements and/or insurance matters can be directed to the person responsible for the vehicle at the relevant time.
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6.4 Records Management
Area Health Services shall maintain appropriate, auditable records in accordance with the WA Government’s Fleet Policy and Guidelines, namely:
• Additional and Replacement Vehicle Justification (Business Case);
• Vehicle Registration - Ordinary Plate Authority (Appendix 2 Ordinary Plate Procedure);
• Records of Usage (Refer to Records of Usage );
• Fleet Management Records (Refer to 6.4.1 Fleet Management Records); and
• Senior Officer Vehicle Scheme (SOVS) and Government Vehicle Scheme (GVS) - Application to Participate.
6.4.1 Fleet Management Records
Health services shall ensure that systems are in place to maintain records of all vehicles as appropriate to the professional management of the fleet, including:
• Fleet Asset Register Recording of appropriate information for each vehicle (e.g. make model, registration number, accessories, acquisition and replacement/disposal dates, fuel consumption, etc) must be maintained on a central register.
• Operating Cost Records Records of all running costs associated with the fleet e.g. registration and insurance, fleet management fees, fuel, maintenance and servicing, acquisition and decommissioning, FBT paid, lease rates, etc are to be maintained. sgFleet can assist with this requirement.
6.4.2 Analysis and Reporting / Internal Cost Assignment
Area Health Services will maintain a system to recognise and assign vehicle costs to each relevant management unit using the vehicle, e.g. a cost centre, business unit, program or project, the manager accountable for the vehicle.
Area Health Services will ensure appropriate analysis and reporting are provided at both an operational/business unit level and at a higher strategic level to enable informed decision making by managers responsible for vehicle costs.
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6.4.3 Internal reporting
For the purpose of internal reporting, a vehicle will be recorded against an Area Health Service from the date the vehicle is delivered. The vehicle will cease to be recorded against the Area Health Service from the time the Fleet Manager (sgFleet) has been notified that the vehicle is ready for collection.
Note: If for what ever reason the vehicle is not ready for collection when sgFleet arrange to collect the vehicle, sgFleet is under instruction to report this vehicle against the Area Health Service as an active vehicle on the quarterly report.
6.4.4 Reporting to the Fleet Steering Committee
Agencies will be required to report periodically to the Fleet Steering Committee on their application of this policy.
The WA Government Fleet Steering Committee Framework will conduct periodic audits and surveys of the Government fleet to assess the asset management principles and compliance with the Government’s policy. Area Health Services will be required to provide the necessary information to the Fleet Steering Committee upon request.
6.5 Lease Payments
Health services are required to make monthly lease payments for each vehicle. Area Health Services shall make monthly lease payments for each vehicle by the due payment date each month. Late payments will incur penalty charges (Refer to 5.10 Penalties).
6.6 Fair Wear and Tear Criteria
All DoH vehicles must be returned in good condition. Area Health Services are responsible for returning vehicles in good condition (fair wear and tear excepted) and will meet all costs of refurbishing a vehicle to meet fair wear and tear standards. The fair wear and tear standards are detailed in 5.11 Fair Wear and Tear Standards.
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7 Vehicle Use
Use of a Government vehicle is subject to a range of conditions. These conditions may differ depending on the type of usage designated for a particular vehicle or officer/driver. Officers should familiarise themselves with these conditions.
7.1 General Conditions of Use
Any person responsible for, or in control of, a DoH vehicle shall take due care for the condition and security of the vehicle and shall comply with this policy and all relevant legislation, traffic laws, regulations and by-laws.
7.1.1 Additional Requirements
Drivers shall comply with any specific requirements stipulated by their agency and contained in the Policy or Guidelines.
The following conditions must be observed by all officers/drivers using a DoH vehicle unless otherwise approved by the Area Chief Executive.
7.1.2 Approved Drivers
Only authorised personnel holding an appropriate and current driver’s licence are permitted to drive a DoH vehicle. Probationary drivers are permitted to drive DoH vehicles for business purposes only.
7.1.3 Passengers
Family members, friends or other persons not associated with official DoH business must not be carried in DoH vehicles, except where allowed under the SOVS and GVS or where approved by the Area Chief Executive.
7.1.4 Vehicle Use
Vehicles are only to be used for official DoH business or in other such circumstances that have been approved by the Area Chief Executive in accordance with this policy.
Drivers are to ensure that the passenger and load limits legally permitted in the vehicle are not exceeded at any time.
7.1.5 No Smoking
Smoking is not permitted in any DoH vehicle at any time.
7.1.6 Recording Systems
Drivers shall comply with policy with respect to the completion of keeping records of vehicle use.
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7.1.7 Traffic/Parking Infringements
Drivers of vehicles are personally responsible for the payment of any fines incurred for Infringements.
7.1.8 Security
Vehicles must be:
• Parked in a safe and secure place at all times. • Properly secured when unoccupied (i.e. keys removed, doors locked and
security systems activated).
Confidential material and expensive equipment must not be left in unattended vehicles.
7.1.9 Insurance
Any personal property carried or kept in a DoH vehicle shall remain the responsibility of the officer to whom the vehicle is assigned at that time the property was placed in the vehicle with regards to losses or damage, unless such property is used in connection with official business.
7.1.10 In the Event of Loss or Accident
Drivers shall comply with all legal and insurance requirements if involved in an accident, including:
• Obtaining particulars of the other parties involved; and • Notifying the Police and your internal Fleet Manager/Coordinator.
Drivers should also immediately report any theft or damage, however slight, to the Area Health Service’s Fleet Manager/Coordinator with a view to repairs being undertaken at the earliest possible opportunity.
Where Departmental vehicles are involved in an accident and damage has occurred to the extent that the vehicle is rendered “unsafe” by the driver or emergency services, the vehicles must be transported to a place of repair.
7.1.11 Home Garaging
DoH vehicles not being utilised under the SOVS and GVS may be home-garaged where the Area Chief Executive is satisfied that this is justified on operational or asset management grounds. Home garaging is subject to specific conditions. The Area Chief Executive/DG may allow officers to home garage DoH vehicles, on a commute only basis, not being utilised under the SOVS or GVS, only where it can be demonstrated that:
• Home garaging the vehicle is more secure than leaving the vehicle on the Department’s premises;
• The officer requires the vehicle for operational purposes outside standard business hours or prior to arriving at the office;
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• The benefit of home garaging a vehicle outweighs the FBT liability that home garaging normally attracts; and
Officers home garaging vehicles are subject to all conditions of use specified in 7.1 General Conditions of Use as well as any conditions applied by the Area Chief Executive. Typical conditions are likely to include:
7.1.12 Most Direct Route
Officers should travel by the normal most direct route between their home and work. Occasional stops and small variations from the normal route are permissible. Regular variations must have the approval of the Area Chief Executive prior to the variation occurring.
7.1.13 Operational Availability
Officers will make the vehicle available in the health services vehicle pool for operational use during normal business hours.
7.1.14 Maintenance - Routine and Periodic
Assigned Vehicles
The officer to whom the vehicle is assigned is responsible for the vehicle being kept clean and tidy; refuelling it when necessary and regularly checking oil, coolant, tyres, running air conditioning, etc.
This officer will ensure that the vehicle is regularly serviced and maintained according to the manufacturer’s recommended specifications.
Unassigned and Pool Vehicles
The DoH Fleet Managers/Co-ordinators are responsible for ensuring vehicles are kept clean and tidy; refuelling them when necessary and regularly checking oil, coolant, tyres, running air conditioning, etc
This officer is also responsible for ensuring that the vehicle is regularly serviced and maintained according to the manufacturer’s recommended specifications.
7.1.15 Parking/Security
The officer to whom the vehicle is assigned will make arrangements for off street parking at home, whenever practicable, with security precautions taken at all times. During official use, the officer will park the vehicle at a location convenient to the needs of the Area Health Service (at no cost to the officer) and the vehicle will be available for pool use.
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8 Government Vehicle Scheme (GVS) –
The Department has determined that GVS will no longer be offered to staff unless there is a demonstrated business requirement. (A termination process is being implemented for those officers currently utilising GVS).
Area Health Services shall not, without the prior agreement of the Department of the Premier and Cabinet, include or infer in new or renewed contracts that a vehicle provided under the GVS represents any part of remuneration.
The inclusion of motor vehicles as remuneration or, as an offset against specific or general wage claims, is not approved by Government.
Participation in the GVS, subject to a demonstrated business requirement, is subject to the following criteria:
Eligibility The following classifications are the WA Health threshold levels for determining the entry point for eligibility to participate in the GVS subject to a staff member have an approved business requirement;
Hospital Salaried Officer – General Division Level 12 Hospital Salaried Officer – Professional Division Level 7 Public Service – General Division Level 8 Public Service – Specified Callings Division Level 6 Senior Registered Nurse Level 10
Officers who currently have access to the GVS may retain their vehicle for operational purposes only, at the Area Chief Executive’s discretion.
Workplace Agreements that provide ordinary plated vehicles outside of current policy will be honoured, but phased out over time.
Vehicles will not be available for private use for GVS participants employed on a part time basis, on days that they are not at work.
Area Chief Executive Discretion Area Chief Executive discretion will determine whether the GVS can be made available based on budgetary constraints, and on what basis vehicles will be allocated.
Vehicle Availability DoH’s fleet size will be based on budget and operational needs.
Area Health Services are required to document justification for each vehicle in their fleet based on genuine operational requirements.
Vehicle Selection Vehicles must be selected from the “Best Buys Vehicle Selection List”.
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Accessories Agencies will fund the cost of optional and/or safety equipment and accessories required for operational reasons. (Refer to 5.7.2 Vehicle Accessories).
Operational Use GVS participants will ensure that the vehicle is available during business hours on a daily basis and accepts that this availability takes precedence over private use.
Employment Conditions Vehicles will not be available for private use for GVS participants employed on a part time basis, on days that they are not at work.
Leave GVS vehicles are predominantly and primarily operational vehicles. Consequently, such vehicles are not available for officers to take on planned leave, unless:
• Area Chief Executive’s must be satisfied that the operational purpose for which the agency obtained the vehicle will not be adversely impacted if the officer is allowed to take the vehicle on leave; and
• Where written approval is granted to take a vehicle on leave, the period should be limited to no more than a normal period of annual leave.
If a vehicle is approved for use during leave, officers are not to drive interstate, travel great distances intrastate or use the vehicle on rough terrain.
Fuel GVS participants who receive approval to take their vehicle on leave will be responsible for fuel costs incurred. Officers must use their fuel cards, in lieu of cash, to enable the Fleet Manager to keep track of kilometres travelled, fuel consumption and fuel purchased during leave.
Contribution Participation in the GVS is subject to payment of a fortnightly contribution by the officer to the officer’s health service. Contribution rates are available on the “Best Buys Vehicle Selection List” are reviewed by the Fleet Steering Committee each year and adjusted in line with the Consumer Price Index (Transport) for Perth. These are post-tax deductions.
Reimbursement of Contribution GVS participants are entitled to reimbursement of any contributions for times when the officer is not accessing the vehicle, e.g. during leave or when vehicle is required for operational use.
Maintenance – Routine and Periodic GVS participants are responsible for the vehicle being kept clean and tidy; refuelling it when necessary, and regularly running air-conditioning, checking oil, coolant, tyres etc.
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Officers will ensure that the vehicle is regularly serviced and maintained according to the manufacturer’s recommended specifications.
Approved Drivers GVS participants will ensure that no other person, other than the officer’s nominee, drives the vehicle for private purposes. The nominee shall not be a learner or probationary driver. The approval of the Area Chief Executive must be obtained for the nominee to drive the vehicle. A record of all nominees shall be kept on a Departmental file.
Compliance with Conditions Officers participating in the GVS must comply with all conditions specified under the GVS for their respective employment level.
Officers participating in the GVS must also comply with the general conditions of use for Government vehicles (Refer to 7.1 General Conditions of Use).
Suspension from the GVS The right to participate in the scheme may be suspended in respect of any officer or nominee, at the discretion of the Area Chief Executive, if the officer or nominee:
• Is convicted of a serious driving offence; • Is judged to have incurred excessive insurance claims; • Has not maintained the vehicle in a suitable manner; or • Has breached any of the agreed conditions.
Termination from the GVS The Area Chief Executive has the right to terminate the private use of a GVS vehicle if it is no longer required for operational purposes or if the officer is no longer eligible for the GVS scheme under the terms and conditions of this policy.
Participation in the GVS is optional; officers may themself elect to terminate GVS arrangements.
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9 Senior Officer Vehicle Scheme (SOVS)
DoH vehicles may be made available for after hours private use under the SOVS. Participation in the SOVS is optional, but is subject to the Area Chief Executive’s discretion, officer eligibility, fortnightly financial contribution, and compliance with all conditions of the scheme.
Under the SOVS, all Senior Executive Scheme (SES) officers or equivalent may access DoH vehicles for private use subject to paying fortnightly contributions and complying with all conditions set out in the policy.
DoH shall not, without the prior agreement of the Department of the Premier and Cabinet, include or infer in new or renewed contracts that a vehicle provided under the SOVS represents any part of remuneration. Access to or the provision of a motor vehicle is not to be used as an offset against specific or general wage claims, and should not form part of an employment contract.
SOVS vehicles will generally have ordinary (non-government) licence plates and be available to WA Health for business use during normal business hours.
Participation in the SOVS is subject to the following criteria:
Eligibility The following classifications are the WA Health threshold levels for determining the entry point for eligibility to participate in the SOVS;
Hospital Salaried Officer – General Division Level 13 Hospital Salaried Officer – Professional Division Level 8 Public Service – General Division Level 9 Public Service – Specified Callings Division Level 7
All officers who are permanent or fixed term contract SES officers (as outlined above) are eligible to access the SOVS.
The SOVS may be made available to officers acting in a position where an SOVS opportunity exists, at the Chief Executive’s discretion.
The SOVS may be made available to eligible officers employed on a part time basis, who are working 0.5 FTE or greater, subject to Chief Executive’s discretion and subject to payment of an adjusted contribution rate.
Vehicle Availability Vehicles may be retained or acquired to allow SES or equivalent officers to participate in the SOVS.
Vehicle Selection SES officers may select vehicles from the all tables in the “Best Buys Vehicle Selection List”.
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Accessories DoH will fund the cost of optional and/or safety equipment and accessories required for operational reasons.
SOVS participants (Level 9 and above, or equivalent) may fit a tow bar for private use, at no personal cost, subject to the Area Chief Executive’s approval. Alternatively, they may choose other accessories (e.g. child restraints), to the value of a tow bar for the specific make and model of the vehicle. The value of any such accessories must include the cost of installation. These items will be disposed of with the vehicle.
Operational Use SOVS participants will ensure that the vehicle is available for operational use during business hours, except when approved by the Area Chief Executive, for periods of paid leave.
Leave At the discretion of the Area Chief Executive, SOVS participants may have the option of using their SOVS vehicle during periods of paid leave for up to 12 months. If this option is taken, the replacement officer will have access to the SOVS subject to vehicle availability only. Additional vehicles will not be leased for this period.
Officers should exercise due restraint in the use of vehicles and not drive interstate, travel great distances intrastate or use the vehicle on rough terrain.
Contribution Participation in the SOVS is subject to payment of a fortnightly contribution by the participating officer to the officer’s health service. Contribution rates are available on the “Best Buys Vehicle Selection List” and reviewed by the Fleet Steering Committee each year and adjusted in line with the Consumer Price Index (Transport) for Perth. These are post-tax deductions.
There is no remuneration value attached to SOVS participation and as such there will be no addition to an officer’s salary should the officer choose not to participate in the SOVS or choose to access a less expensive vehicle.
Reimbursement of Contribution SOVS participants are entitled to reimbursement of any contributions for times when the officer is not accessing the vehicle e.g. during leave or when vehicle is required for operational use.
Maintenance – Routine and Periodic SOVS participants are responsible for the vehicle being kept clean and tidy; refuelling it when necessary, and regularly running air-conditioning, checking oil, coolant, tyres etc.
Officers will ensure that the vehicle is regularly serviced and maintained according to the manufacturer’s recommended specifications.
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Approved Drivers SOVS participants may permit other persons (except learner and probationary) to drive the vehicle for private purposes. Compliance with Conditions
SOVS participants must agree to the terms of this scheme and sign the SOVS application form, and comply with the general conditions of use for government vehicles (Refer to 7.1 General Conditions of Use ).
Suspension from the SOVS The right to participate in the scheme may be suspended in respect of any officer or nominee, at the discretion of the Area Chief Executive, if the officer or nominee:
• Is convicted of a serious driving offence; • Is judged to have incurred excessive insurance claims; • Has not maintained the vehicle in a suitable manner; or • Has breached any of the agreed conditions.
Termination from the SOVS As participation in the SOVS is optional, officers may themself elect to terminate arrangements. SOVS participants are not entitled to remuneration in lieu of SOVS participation.
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Appendix 1 WA Government Fleet Steering Committee Framework
Chief Executive Officers are responsible and accountable for managing their fleet within the government’s policy.
Public Sector bodies have autonomy in the management of their motor vehicle fleet. With this devolution of responsibility comes the need for Government to monitor progress against key fleet objectives from a whole of government perspective. A structure has been established to ensure agencies have proper authority and access to relevant information and advice to optimise their fleet asset, as well as providing Government with the necessary overview capacity.
The Fleet Steering Committee provides the overall fleet policy framework for all Public Sector bodies to work within, to monitor agency compliance and address fleet issues.
The Fleet Steering Committee comprises of:
• Under Treasurer (Chair; Department of Treasury and Finance); • Director General (Department of Premier and Cabinet); • Director General (Department of Consumer and Employment Protection); and • Executive Officer (Director of Financial Operations Division; Department of
Treasury and Finance).
The roles of the Fleet Steering Committee are to:
• Implement the WA Government Fleet Policy, which gives public sector bodies guidance;
• Ensure the policy is current and aligned with contemporary Government strategies;
• Refine the policy as new issues arise; • advise the Treasurer on Government fleet issues; • Establish benchmarks and key performance indicators by which agency fleet
performance can be measured; • Review fleet performance across Government; • Establish the mechanism for adjusting contribution rates for the GVS; • Develop the conditions for vehicle use by officers under the GVS; • Adjudicate special applications or exemptions; and • Advise agencies on matters relating to the policy.
The diagram overleaf provides a visual representation of the WA Government Fleet framework.
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WA Government Fleet Framework
FLEET STEERING COMMITTEE
PRIVATE SECTOR
Contractors for:
• Vehicle Acquisition
• Fleet Management
• Vehicle Disposal
• Inspection Services
FINANCING and LEASING
(Department of Treasury and Finance
/ State Fleet)
FLEET POLICY
Advice and Contract Management
(Department of Treasury and Finance
/ State Fleet)
PU
BLI
C S
ECTO
R A
GEN
CIE
S CABINET
TREASURER
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Appendix 2 Ordinary Plate Procedure
All DoH vehicles shall be fitted with Government licence plates unless they meet one of the following criteria:
• The vehicle is part of the GVS or SOVS; or • The Treasurer has granted exemption, e.g. there is an operational requirement
for confidentiality, sensitivity or security reasons.
Applications for exemption should be forwarded to the Fleet Steering Committee. The letter of application must detail the nature of the work and why it requires ordinary plates and explain why this need can not be met using existing ordinary plated vehicles in the fleet.
To have a vehicle registered with ordinary plates; DoH is required to maintain appropriate auditable documentation.
The only acceptable support documents are either:
• A copy of a completed, Area Chief Executive approved, SOVS/GVS - Application to Participate form; or
• A letter from the Chair, Fleet Steering Committee confirming that the Treasurer’s approval has been granted for security, surveillance, and confidentiality purposes.
Once this documentation is in place, the health service is required to provide a letter from the Area Chief Executive to DoH’s contracted fleet manager – sgFleet, requesting the ordinary plates (Refer to Appendix 2 Ordinary Plate Procedure).
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Appendix 3 Adjusted contribution rate for part time officers in the SOVS
The adjusted contribution rate for the SOVS is calculated by applying the existing SOVS contribution rate to weekends and days worked, and applying a cost recovery rate to working days on which the officer concerned does not work.
Adjusted Contribution Rate Calculation The calculation for the adjusted contribution rate contains the following inputs:
• Yearly cost is the “whole of life” cost of the vehicle over a calendar year. The yearly cost will differ for each vehicle and should be obtained from your Fleet Manager.
• Yearly FBT is the cost of the FBT over a calendar year. • Number of weekdays worked per fortnight plus weekends. • Number of weekdays not worked per fortnight. • Current SOVS contribution rate for proposed vehicle:
The formula used to calculate the adjusted contribution rate is:
1. Fortnightly cost to operate vehicle excluding FBT liability = Yearly cost – Yearly FBT 26.1 (number of fortnights in a year)
2. SOVS entitlement proportion = Number of week days worked per fortnight /14 x Current SOVS contribution rate
3. Cost recovery proportion = Number of week days not worked per fortnight /14 x fortnightly operating cost of the vehicle
Adjusted Contribution Rate = SOVS entitlement proportion + Cost recovery proportion
The example below shows the adjusted contribution rate formula applied for an SES officer working 3 days a week (0.6 FTE) who has a Subaru Liberty 2.5i 4D Sedan (medium passenger vehicle). This calculation works on a 14-day fortnight. An SES officer working 0.6 FTE will pay the standard contribution rate for 10 days (6 working days and 4 weekend days), and 4 days at the cost recovery rate.
= $17,375 - $6,132 = $430.77 26.1
1. SOVS entitlement proportion = 10/14 x $99.00 = $70.71 (Contribution rate B) 2. Cost recovery proportion = 4/14 x $430.77 = $123.08 3. Adjusted contribution rate = $70.71 + $123.08 = $193.79
SOVS Officer’s adjusted contribution rate per fortnight = $193.79
The cost recovery component will be locked in for the term of the lease (similar to SAT); and the yearly CPI increases on the SOVS contribution rate will apply proportionately to the adjusted contribution rate.
If an officer changes the number of days worked part time e.g. from 5 to 6 days a fortnight, an appropriate recalculation will need to be made.
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No Lon
ger A
pplic
able.
Incorp
orated
into
Financ
ial M
anag
emen
t Man
ual.
See Fina
ncial
Man
agem
ent
Policy
Framew
ork.
July
2016
