Senior Manager Vehicle Allowance Policy

1. Purpose

The aim of this policy is to set out the conditions and principles applicable to CIT Senior Managers who access a salary sacrificed vehicle on the condition that it is available for use by CIT staff.

2. Scope

This policy applies to Senior Managers who access a salary sacrificed vehicle through the special arrangements that CIT has in place with SG Fleet and Custom Fleet or through a novated lease with one of CIT’s salary packaging providers. 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 ACT Government Senior Executive Service Officers.

3. Principles

3.1 Officers at the Senior Officer Grade B level or above or the Manager Education Level 2 or above, subject to operational needs, can salary sacrifice a vehicle through arrangements that the ACT Government (via Shared Services) has with salary packaging providers. Access to this arrangement is purely voluntary and does not preclude other salary sacrifice arrangements.

3.2  A vehicle accessed under these arrangements will be via an operating lease. In the case of a Custom Fleet vehicle, the vehicle will at all times remain the property of CIT and is to be leased under novated lease arrangements 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 as negotiated with their salary packaging provider. All Fringe Benefits Tax (FBT) liabilities under the agreed arrangement will be the responsibility of the Senior Manager. In all cases the vehicle must be made available for use by other CIT staff whilst the Senior Manager is at work and is not using the vehicle.

3.3 A vehicle accessed under these arrangements will have to be of a type that is suitable for CIT operational purposes.

3.4  A Senior Manager salary sacrificing a vehicle through these arrangements will be responsible for meeting all lease, fuel, tyre replacement, maintenance (where not included in the lease) and administrative costs as well as any FBT obligations that may arise. In the case of a Custom Fleet vehicle, GST input tax credits will be managed by CIT on behalf of the Senior Manager.

3.5  In return for meeting costs associated with the vehicle, the Senior Manager will be provided with a salary top-up of $6,500 per annum for Senior Officer Grade A/Senior Officer Grade B/Manager Education Level 2/Senior Education Leader. The allowance provided by CIT 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 a salary sacrifice arrangement must be requested through the Senior Director Finance. CIT Finance will arrange ordering of vehicles and the day-to-day administrative aspects of the vehicle. Note that vehicles (new or replacement) will not be ordered until all applicable agreements have been approved.

3.7  Staff members are required to obtain external financial advice as a condition of access to 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.

3.8  Senior Managers who provide their own vehicle (i.e. the salary packaged vehicle) for CIT use will have their insurance excess refunded should their vehicle be involved in an accident where other CIT staff were at fault. Any excess payable under an insurance claim will otherwise be the responsibility of the vehicle lessee.

4. Documentation

• Public Sector Management Act 1994
• Fringe Benefits Tax Assessment Act 1986
• ACT Public Service Salary Packaging Manual
• ACT Public Service Salary Packaging Policy

5. Definitions

All terminology used in this policy is consistent with definitions in the CIT Definition of Terms.

6. Policy Contact Officer

Senior Director, Finance.

Contact CIT Student Services on (02) 6207 3188 or email infoline@cit.edu.au for further information.