POLICY AND PROCEDURE Policy Name: Section: Approved By: Motor Vehicles General E- Focus Last Reviewed: June 2012 SECTION 1 INTRODUCTION PURPOSE To advise staff on their rights, obligations and responsibilities with regard to motor vehicles owned or leased by the Organisationorganisation. To outline the minimum standards of conduct relating to employees who use Organisationorganisational motor vehicles. This policy is complimentary to specific standards and codes outlined in the Organisationorganisation s underpinning Government contracts / agreements. PRINCIPLES This policy is guided by the principle that the Organisationorganisation will provide safe, appropriate vehicles to meet the demand of work related travel, and ensuring the appropriate allocation, equitable distribution and use of vehicles among staff of the Organisationorganisation. motor SCOPE This policy applies to all current and prospective staff of E-Focus, AApprenticeships Melbourne and related entities ( the Organisationorganisation ), in relation to the use of motor vehicles owned or leased by the Organisationorganisation. The CEO and Managers may have additional, individually approved arrangements. EXCLUSIONS Nil LEGISLATIVE CONTEXT Labour Market Assistance Industry Award 2010 Australian Taxation Office Regulations PO12 3Motor Vehicle Policy (03-06-13PO11 3Motor Vehicle Policy 01-12-112 Page 1 of 8
DEFINITIONS Word / Term Pool Cars Novated Lease/Operating Lease Vehicles Fringe Benefit Travel Allowance Definition Pool cars are vehicles used to carry out day-to-day business. Pool cars are required to be available for staff usage during normal business hours. Allocated cars at sole discretion of management, which form part of the employee s Conditions of Employment. A fringe benefit is a payment to an employee but in a different form to salary and wages. The reimbursement for the business use of an employee s private vehicle. Travel directly to a meeting (out of the office) from home, to home directly from a meeting (out of the office) or between work sites during the day is regarded as business use. Travel between home and the employees usual work site is treated as private use. SECTION 2 POLICY 1. Allocation and Use of Cars As per the definitions included in this policy, vehicles may be regarded as Pool Cars or allocated to individual staff members as part of their condition of employment. Priority of usage of pool cars is determined according to a staff member s day-to-day duties and may be assigned to appropriately licensed, individual permanent staff for garaging at home for insurance purposes. 2. Driver Duty of Care 2.1 Driver Eligibility Only people with a current Driver s Licence that is valid for the vehicle type may drive a vehicle. Company vehicles are not to be used for driver training. 2.2 Safety At all times the driver must ensure that the motor vehicle is used in a safe manner, including compliance with the Leasing Company s guidelines and compliance with road rules, including those in relation to the use of seatbelts. The driver must be careful and diligent in ensuring the safety of all persons (whether staff or clients) using the car as driver or passenger. In the case of a car breakdown or problem, the instructions in the driver s handbook in the glove box are to be followed firstly and then Emergency Roadside Assist contacted if required. 2.3 Garaging / Safe Secure Parking of Vehicles Staff must take reasonable steps to ensure that the OrganisationOrganisation s vehicles are parked safely and securely. PO12 3Motor Vehicle Policy (03-06-13PO11 3Motor Vehicle Policy 01-12-112 Page 2 of 8
2.4 Drivers must comply with the Law Compliance with all legislation and all current Road Laws is mandatory when driving the motor vehicle. If you are taking prescribed medication, which may cause drowsiness, avoid driving the motor vehicle. Please also be aware of driver fatigue if driving long distances and take regular breaks. Driving with a Blood Alcohol Content (BAC) over the legal limit or being under the influence of illegal drugs is against the law and will result in any of the following: loss of drivers licence; personal penalties such as fines; imprisonment; financial penalties associated with the voiding of insurance cover and damage to property expenses. Staff are required to disclose any breaches of Road Laws including Speeding, BAC etc, for insurance purposes. 2.5 Mobile Phones All drivers are responsible for complying with current legislation and road rules with respect to mobile phone usage. The legal requirements regarding mobile phone usage are outlined in the Road Safety Act, which indicates that it is illegal to use a hand held mobile phone whilst a vehicle is in motion. 3. Fringe Benefits Tax (FBT) and Salary Sacrifice (See Remuneration Policy) 3.1 Vehicles as Fringe Benefits A fringe benefit is a payment to an employee but in a different form to salary and wages. According to the fringe benefits tax (FBT) legislation, as enforced by the Australian Taxation Office (ATO), a fringe benefit is a benefit provided in respect of employment and includes motor vehicles used or available for private use. The Organisationorganisation, in providing vehicles to staff, acknowledges that they will be used for both business and private use. By ATO definition, a fringe benefit is provided when an employee uses a vehicle owned or leased by the organisationorganisation for private purposes. This fringe benefit is deemed to have been supplied to an employee when: employees take cars home and/or garage them overnight (even if only for security reasons); vehicles owned by the organisationorganisation are made available to employees for private use. 3.2 Main Driver Responsibility At the time of taking on the responsibility of driving a vehicle, a staff member must be provided with a copy of this policy as part of the Induction Procedure. It is then the staff member s responsibility to read and to come to an understanding of how driving a vehicle may affect their ability to utilise the Salary Sacrificing. Each employee driving a vehicle will have a different FBT calculation as explained in Sections 3.4., depending upon the cost of the car and the number of km s the car travels. The main driver must report the km s of the vehicle to Finance at the end of each calendar month. 3.3 Temporary Driver Responsibility Staff members who are garaging a vehicle overnight on a temporary basis attract FBT due to the fact that they are using the car for private use (travel from home to work) with petrol paid for by the company. The temporary driver must consult with the Finance Department to ensure he/she understands the impact on the salary sacrifice arrangements during the period (see 3.4). The main driver of a vehicle that has been loaned to another staff member temporarily does not attract FBT during this time. Finance will advise on PO12 3Motor Vehicle Policy (03-06-13PO11 3Motor Vehicle Policy 01-12-112 Page 3 of 8
each case individually according to the circumstances of the loan situation. In general terms, the calculation is based on the number of kilometres and purchase price of all vehicles driven during the FBT Year. 3.4 Vehicle Types and Salary Sacrificing Arrangements The OrganisationOrganisation will present staff with a range of options regarding the type of vehicle and leasing arrangements, with the aim of: minimising the effect of FBT on salary sacrificing arrangements minimising the effect on the environment and minimising the cost to the organisationorganisation Private use of a motor vehicle is a fringe benefit and will impact on a staff member s ability to salary package under the OrganisationOrganisation s salary packaging arrangements. The maximum amount available for salary sacrifice is $617 per fortnight (for staff members with no private use of a company motor vehicle). The maximum salary sacrifice amount for a staff member who has private use of a company vehicle is $480 per fortnight. Early in the calendar year, Access Pay (the company who provides our Salary Sacrificing Administration), will contact any staff member who is driving a vehicle which is likely to achieve less than 25,000 kms by the end of March that year, in which case these staff members should expect a reduction in their salary sacrifice amount. To assist staff members, management will advise of the need to swap vehicles between drivers during the year to assist in achieving higher km s on a particular vehicle and therefore minimising the need of reducing the salary sacrifice amount. Calculations for shorter periods of time (eg. temporary drivers) are based on an estimate percentage of the total number of km s that the vehicle will have achieved by the end of the FBT year. The calculation for the FBT salary sacrifice allowed for an employee using the vehicle is as per the following schedule. As an example of how staff may be affected, if a staff member is advised to salary sacrifice $100 less per fortnight, the net difference of the take home pay may be only $30 per fortnight less. Fringe Benefit Sacrifice Car Benefit Provided prior to 7:30pm AEST on 10 May 2011 with no subsequent change in Commitment Vehicle Km per FBT Year 1st April - 31st March Less Than 15-24,999 15,000 25, km km km -40,000 More Than 40,000 ATO Assumed Private Use % 26% 20% 11% 7% Car Make Car Price Salary Sacrifice/Fortnight Toyota Camry 25,798 332.33 398.09 496.73 480.00* Ford Mondeo 28,625 301.10 374.07 483.52 480.00* Ford Falcon 31,417 270.26 350.35 470.47 480.00* km PO12 3Motor Vehicle Policy (03-06-13PO11 3Motor Vehicle Policy 01-12-112 Page 4 of 8
Car Benefit Provided post 7:30pm AEST on 10 May 2011 - FBT Year 1 April 12-31 March 13 Vehicle Km per FBT Year Less Than 15-24,999 25, -40,000 More Than 1st April - 31st March 15,000 km km km 40,000 km ATO Assumed Private Use % 20% 20% 17% 13% Car Make Car Price Salary Sacrifice/Fortnight Toyota Camry 25,798 398.09 398.09 430.97 474.81 Ford Mondeo 28,625 374.07 374.07 410.55 459.20 Ford Falcon 31,417 350.35 350.35 390.39 443.78 The current four percentage rates are to be replaced with a single statutory rate 20% on 1 April 14 Kilometre Bracket Pre 11 May 2011 Rates From 10 May 2011 Year Commencing 1-Apr-12 1-Apr-13 1-Apr-14 Less than 15,000 Km 26% 20% 20% 20% 20% 15,000-24,999 Km 20% 20% 20% 20% 20% 25,000-40,000 Km 11% 14% 17% 20% 20% More than 40,000 Km 7% 10% 13% 17% 20% 4. Use of Vehicles During Annual Leave The use of a motor vehicle whilst on annual leave may be approved by Management on a case by case basis. Should approval be granted, the following must apply: annual leave period must be for no more than 4 weeks duration; travel must be within the state of Victoria, unless directly approved by a Manager. If Interstate usage is approved, the cost of petrol will be at the employee s own cost. only drivers whose names are listed on the Insurance Policy documentation for vehicles owned or leased by the OrganisationOrganisation are able to drive the vehicles. Management reserves the right to re-allocate the use of a vehicle (except in the case of a novated/operating lease) when a staff member who ordinarily has the use of a motor vehicle is going to be absent from work duties due to any of the following reasons: annual leave period for longer than 4 weeks; travelling interstate using another mode of transport; long term sick leave; any other long term leave. In the above case where a vehicle is to be allocated to another staff member during a period of leave, the new driver of the vehicle attracts fringe benefits payments during the specific periods of driving the car. 5. Insurance The Organisationorganisation will organise insurance for every motor vehicle owned or leased. Details of PO12 3Motor Vehicle Policy (03-06-13PO11 3Motor Vehicle Policy 01-12-112 Page 5 of 8
this insurance, any restrictions on its use and circumstances under which the insurance will be void, can be obtained from Finance. The Organisationorganisation has a Duty of Disclosure to the Insurer, and, as such, must be made aware of any circumstances / incidents that could affect our insurance risk. As a result, if you have or have had an accident (even in vehicle not supplied by the Organisationorganisation) or incur a driving conviction, fine or demerit points, details must be provided to Finance in order that they can be noted on the insurance policy. 6. Notification of Accidents / Scratches and Other Mishaps Finance must be notified as soon as possible, in writing, of all accidents, scratches and mishaps. If an accident occurs, details of the accident and other parties involved including their insurance details are to be put in writing to Finance by the next working day. Where another vehicle is involved in the accident, please ensure that you obtain the following information and make the following reports: Please obtain: Make, model and registration number of the other vehicle; Name of the other driver, and whether they are the owner/insured; Contact details of the other driver, and of the insured if different; Licence number of the other driver (confirming the details shown on the licence); Details of the other motor vehicles insurer. Please make immediate reports regarding the accident to: the police, if appropriate; the Organisationorganisation (via a memo to the Operations Manager and to the Executive Assistant for CEO). In the event that the accident is the result of road rules being broken (eg. speeding, talking on the mobile phone, etc.) the driver will be required to pay the insurance excess payment. PO12 3Motor Vehicle Policy (03-06-13PO11 3Motor Vehicle Policy 01-12-112 Page 6 of 8
7. Car Diary at Reception It is the responsibility of each main driver to record full details of any temporary driver (for use between 9am - 5pm) in a site specific Car Diary at reception at each site. All pool vehicles must be returned to the office by 5pm for use by the main driver. If an overnight booking is required, this must be approved by Management and Finance logged in the Car Diary. 8. Travel Incurred Expenses 8.1 Travel Allowance Staff members who use their private vehicles for business use during the course of their daily work are able to claim for a reimbursement using the Travel Allowance form available on the Intranet, according to the following definition: Travel directly to a meeting (out of the office) from home, to home directly from a meeting (out of the office) or between work sites during the day is regarded as business use. Travel between home and work is treated as private use. 8.2 Toll Charges For staff members who use a vehicle and register a toll charge on the ETAG device, a statement of trips made in the vehicle will be given to the staff member from time to time to highlight which trips were made for reasons other than to and from work (eg. trips made in the evenings, on weekends or leave that are not work related). The cost of the toll charge for these trips will be then deducted from the staff member s pay. 8.3 Parking The cost of parking will be reimbursed upon presentation of a receipt, as per the Reimbursement Policy. Parking and speeding fines are solely the responsibility of the driver. 8.4 Fines and Infringements Payment of any fine, penalty or infringement notice is the responsibility of the specific driver who will be identified via the site specific car diary controlled by reception at each site (refer to section 7). 9. Motor Vehicle Maintenance and Repairs 9.1 Scheduled Servicing It is the responsibility of the allocated driver to arrange the regular service and maintenance of the motor vehicle in compliance with the Leasing Company s recommended service and maintenance intervals. Details of the service provider are available from Finance. 9.2 General Care and Maintenance As the Organisationorganisation s vehicles are pool vehicles, users of the vehicles must be aware of the needs of others. It is the main driver s responsibility to ensure that the car is kept clean (both inside and out) at all times. Rubbish is to be removed daily. Regular vacuuming is expected. All cleaning costs are the responsibility of the main driver. The only exception is in the case of when a vehicle is being transferred permanently to another driver, the organisationorganisation will reimburse the cost for a detailed clean. Under no circumstances is smoking permitted in the motor vehicle. Pets are not permitted in the motor vehicle at any time. It is the responsibility of the person who garages the car to maintain it in a roadworthy condition in between services. This involves regularly checking tyre condition and air pressure, water/oil leaks and any other faults. PO12 3Motor Vehicle Policy (03-06-13PO11 3Motor Vehicle Policy 01-12-112 Page 7 of 8
9.3 Vehicle Inspections From time to time, the Fleet Manager or another authorised staff member will conduct a vehicle inspection. A vehicle inspection will also take place whenever a vehicle is swapped from one employee to another. The Organisationorganisation will not pay for unauthorised repairs or maintenance to vehicles. The allocated driver is required to advise Finance of the date the motor vehicle is booked for service or repair and the odometer reading at the time of the service or repair. 9.4 Roadside Assistance Details of roadside assistance (if applicable) are in the vehicle handbook. If a breakdown occurs or assistance is called, Finance must be notified the next working day. PO12 3Motor Vehicle Policy (03-06-13PO11 3Motor Vehicle Policy 01-12-112 Page 8 of 8