Senior Manager Vehicle Allowance Policy
The aim of this policy is to set out the conditions and principles applicable to Institute Senior Managers that can access a salary sacrificed vehicle that is available for Institute use.
This policy concerns all Senior Managers who are able to access a salary sacrificed vehicle through the special arrangements the Institute has in place with Custom Fleet or through a novated lease with one of CIT’s salary packaging providers. Also, the arrangements are only available to those areas that have an operational need for a vehicle. This arrangement is not available to ACT Government Chief Executives or members of the ACT Government Senior Executive Service where different arrangements apply.
3.1 Officers appointed to the Institute at the Senior Officer Grade B level or above or the Teacher Band 3 level or above subject to operational needs can salary sacrifice a vehicle through the special arrangements the Institute has with Custom Fleet or through a novated lease with one of CIT's salary packaging providers. Access to this arrangement is purely voluntary and does not preclude other salary sacrifice arrangements.
3.2 The vehicle accessed under these special arrangements will be via an “operating lease” with Custom Fleet or through a "novated lease" with one of CIT's salary packaging providers. In the case of a Custom Fleet vehicle, the vehicle will at all times remain the property of the Institute and is to be leased for a period of at least 24 months. A novated lease vehicle is to be leased for a term and yearly kilometre amount defined by the individual Senior Manager in the negotiation with their salary packaging provider. Note that all FBT costs under either arrangement are the responsibility of the Senior Manager. In all cases the vehicle must be made available for Institute use by other CIT staff whilst the Senior Manager is at work.
3.3 The vehicle accessed under these arrangements will have to be of a make and model suitable for Institute purposes.
3.4 The Senior Manager salary sacrificing a vehicle through these arrangements will be responsible for meeting all lease costs, fuel costs, tyre replacement costs and maintenance costs (where not included in the lease), administrative costs and FBT obligations from their salary. In the case of a Custom Fleet vehicle, GST input tax credits will be managed by the Institute on behalf of the Senior Manager.
3.5 In return for meeting all costs associated with the vehicle, the Senior Manager will be provided with a salary top-up of $6,000 per annum for Senior Officer Grade A/Senior Officer Grade B/Teacher Band 3/Senior Education Leader. The allowance provided by the Institute is a fixed standard rate and will not be varied to accommodate higher lease cost vehicles. The allowance provided under this policy is recognised as salary for superannuation purposes.
3.6 All arrangements for establishing or renewing the salary sacrifice must be requested through the Director CIT Corporate Services. CIT Corporate Services will organise the ordering of vehicles and the day-to-day management of the operational aspects of the vehicle. Note that vehicles (new or replacement) will not be ordered by CIT Corporate Services until all applicable agreements have been approved, as advised by CIT Corporate Services.
3.7 Staff members are required to obtain financial advice as a condition of ACT Government salary packaging arrangements. Specifically, staff should ensure that they have a clear understanding of the taxation and FBT implications and requirements of the CIT vehicle allowance being offered. Staff may choose not to participate in Senior Manager Vehicle Allowance arrangements if they wish.
3.8 Senior Managers who provide their own vehicle (i.e. the salary packaged novated vehicle) for Institute use will have their insurance excess refunded should their vehicle be involved in an accident where other Institute staffs were at fault. Otherwise the excess will be the responsibility of the vehicle owner.
- ACT Public Service Salary Packaging Policy and Procedures
Institute - Canberra Institute of Technology (excluding CIT Solutions Pty Ltd).
FBT - Fringe Benefits Tax.
Employees - People employed by the Institute under the Public Sector Management Act 1994.
Senior Manager - Staff of the Institute at the level of Senior Officer Grade B or above or Teacher Band 3 or above in a tenured position or employed on a contract of at least 2 years.
Approver for Vehicle Allowance Agreements for Senior Managers - The Chief Executive or Chief Operating Officer can approve these arrangements for Senior Managers.
6. Policy Contact Officer
For more information about this policy contact Director, CIT Corporate Services.
Contact CIT Student Services on (02) 6207 3188 or email firstname.lastname@example.org.
Policy No: 2017/471
Approved: February 2014
Next Review: September 2023
Category: Staff Policies, Corporate Policies
Policy Owner: Executive Director, Corporate Services
Client Service Charter
Student Code of Conduct
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