KEMPSEY SHIRE COUNCIL
COUNCIL MOTOR VEHICLE LEASEBACK
Procedure 5.5.29
Policy No. and title
5.5
Conditions of Employment Policy
Procedure
5.5.29
Council Motor Vehicle Leaseback
Version
4
Date Adopted
24 January 2014
INTRODUCTION
Kempsey Shire Council recognises that it will be required to purchase and maintain an
extensive vehicle fleet for the provision of services to the community. Council is committed
to maintaining its vehicle fleet in an economically, socially and environmentally responsible
manner.
Council is also committed to achieving its long term vision to become an ‘Employer of
Choice’ and recognises that the modern labour market is highly competitive and that, in
order to attract and retain skilled staff in key positions, Council must provide a range of
appropriate incentives.
The Motor Vehicle Leaseback Procedure is intended to address these issues by establishing
standards and guidelines for the provision of private use of motor vehicles to staff members
under a leaseback arrangement.
1
2
OBJECTIVES
•
To assist Council to meet its strategic objective to become an ‘Employer of
Choice’.
•
To enable Council to remain competitive with other employers in attracting and
retaining skilled staff.
•
To enable Council to provide employees with a valuable benefit while at the
same time providing some income to offset the cost of maintaining Council’s
vehicle fleet.
•
To provide clear and consistent guidelines for the efficient and effective
operation of Council’s Motor Vehicle Leaseback scheme.
OWNERSHIP AND AVAILABILITY
2.1
As a basic premise, vehicles are to facilitate delivery of Council services and
shall be available as a first priority at all times for this purpose. For those
employees who are in charge of a vehicle and are permitted private use, the
following conditions strictly apply.
Council vehicles will be available as pool vehicles even though private use
leaseback may apply. This means that whilst a staff member who has been
allocated a vehicle, while at work on a regular week day, the vehicle must be
available for use by them or other staff for business purposes. Council
requirements take first priority during the employees normal working hours
with the exception of the leave periods described in clause 8.3.
5.5.29
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2.2
The vehicle must be kept clean and presentable at all times by the employee.
The transport of animals in council vehicles whilst not encouraged should be
kept to a minimum and all efforts must be made to protect the vehicle
upholstery and carpet.
If the vehicle is presented at vehicle changeover time in an unsatisfactory
condition, the employee will be required to pay the costs of having the
vehicle cleaned or repaired.
3
5.5.29
2.3
The Council will provide for repairs, maintenance and insurance of the vehicle
and NRMA/Holden wise or similar membership.
2.4
When at the employee’s residence, the car must be parked off-street and
preferably under cover, unless otherwise approved by the Coordinator Fleet
and Procurement.
2.5
The Council vehicle must not be used in any car rally or competition.
2.6
No modifications are to be made or equipment added to or removed from the
vehicle without the prior approval of the Coordinator Fleet and Procurement.
2.7
Smoking is not permitted under any circumstances in Council vehicles at any
time. This includes passengers. Non-compliance of this will lead to a breach
of Council’s leaseback agreement, which will lead to termination of the
agreement.
FUEL
3.1
Vehicles are assigned a Fuel Card for the purchase of fuel. The fuel card shall
be used at all times when fuelling Council’s vehicles at any service station
(preferably Shell service stations), which accepts the issued fuel card.
Employees are requested to fuel vehicles to a full tank each time the card is
used. The speedometer reading is to be given to the service station operator
at the time of fuelling. This practice is preferable as it assists in vehicle
management. Consistent failure to use fuel cards or record speedometer
readings will be deemed a breach of Council’s leaseback agreement, which
will lead to termination of the agreement.
3.2
The fuel card shall only be used for the purchase of fuel, oil or other fluids for
council vehicles. No other purchases using the fuel card are permitted. The
use of the fuel card for obtaining bonus points (ie fly buy points) is prohibited
as a fringe tax liability is incurred.
3.3
Fuel cards must be returned to the Fleet section upon termination of
employment. Lost cards must be reported immediately to the Fleet section
who will facilitate cancellation of the card.
3.4
The cost of fuel while leaseback participants use the vehicle for private travel
will be met as follows:
3.4.1
Fuel purchased within New South Wales - cost met by Council.
3.4.2
Fuel purchased outside New South Wales will be met by the leaseback
participant.
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4
LEASEBACK VEHICLE CATEGORIES
Council will provide eligible employees with the option to participate in the leaseback
and private use of a motor vehicle in accordance with the following categories.
4.1
Category 1
This category applies to the General Manager and Directors, who will be
provided with the option of a leaseback vehicle in accordance with this Policy
and Council’s Motor Vehicle Leaseback or Commuter Use Agreement.
Employees in this category will have the option of a sedan, hatchback,
wagon, 4WD or 2WD SUV. The purchase price must not exceed 30% of the
total remuneration package.
4.2
Category 2
This category applies to managers and professional/specialist staff employed
under Band 3 or Band 4 of the Local Government (State) Award, where the
vehicle is provided as a condition of employment and was negotiated as part
of the remuneration package for the position, either at the time of
employment or a later date.
The General Manager will determine what positions attract a leaseback motor
vehicle in this category, taking into account labour market forces, skills
shortages, inability to fill critical positions and other relevant factors.
Council will provide a sedan, hatchback, wagon, 4WD or 2WD SUV that will
meet the operational requirements of Council.
4.3
Category 3
This category applies to employees who require the use of a vehicle for
operational purposes on a continuous daily basis during work hours, as an
integral part of the position they occupy. In such cases, the leaseback
agreement is offered as a discretionary benefit that is not a condition of
employment.
The relevant Director will determine what employees will have the option of a
leaseback vehicle in this category.
Employees in this category will have the option of leasing the vehicle that has
been purchased to carry out the operational requirements of Council.
4.4
Standard of Vehicles
The standard of vehicle to be allocated shall be at the discretion of the
General Manager or their delegate and will fall into the following categories:
1
Class 1 Vehicles:
a)
2
Class 2 Vehicles:
a)
5.5.29
A vehicle of 4 cylinders less than 2.5 litres – Executive Range or
lower.
A vehicle of 4 cylinders AWD/2WD SUV wagon – Executive
Range or lower
Page 3 of 7
3
Class 3 Vehicles:
a)
4
Class 4 Vehicles:
a)
5
Vehicles which are negotiated with the individual or included in
their contract of employment and are not considered Class 1 or
Class 2 vehicles. E.g. a vehicle with a seating capacity of greater
than 5 people or 4WD.
Vehicles which are negotiated with the individual that exceed the
operational requirements of Council.
NOVATED LEASES AND ASSOCIATE LEASES
5.1
The onus is on the employee to seek their own independent financial advice
as to the personal implications of entering into a novated lease or an
associate lease arrangement.
5.2
Employees with an entitlement to a leaseback vehicle as per clause 4 may
elect to enter into a novated (or associate) lease arrangement through the
salary packaging provider Maxxia.
a)
The vehicle selected should be of a type as agreed by Council
which is fit for purpose.
b)
The vehicle will not form part of Council’s pool vehicle fleet.
c)
Payment of an allowance which incorporates the minimum Local
Government (State) Award will be provided to an employee
whose vehicle is required to be available on a continuous basis in
accordance with the following schedule.
Agreed Vehicle Type
2wd vehicle
4wd vehicle
Allowance
$8,500 per annum
$9,500 per annum
The annual novated lease allowance will be increased in line with
any Local Government (State) Award variations.
6
5.5.29
d)
All costs associated with the purchase, operation, maintenance
and FBT of the vehicle becomes the responsibility of the
employee.
e)
The employee is required to use the vehicle for their own work
business purposes with no entitlement to reimbursement of
expenses incurred or damages sustained whilst operating the
vehicle.
f)
Employees may be required to keep a log book to claim business
travel as a tax deduction.
VEHICLE EXTRAS
6.1
The employee’s Director must approve any extras fitted to the vehicle. Extras
that limit flexibility in managing the fleet to ensure lowest ownership cost will
not ordinarily be fitted.
6.2
All vehicles provided under Leaseback will be fitted with the following
standard accessories, where available:
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•
•
•
•
•
•
•
Floor mats (front and rear)
Mudflaps (front and rear)
Seat covers
Air conditioning
Anti-lock braking system (ABS)
Cruise Control
Metallic or pearl paint (White or Silver)
Council may fit additional accessories if they are required for safety or
operational reasons.
6.3
Accessories other than standard vehicle inclusions may be considered,
however the employee will need to demonstrate the need for any accessory
to their Manager prior to requesting approval for the accessory. Non-standard
accessories approved to be fitted to the vehicle will be at the employee’s
expense for the initial purchase. Council will bear the cost of the accessory on
any subsequent vehicle allocated to that employee. No accessory is to be
fitted to the vehicle without the consent of the Coordinator Fleet and
Procurement.
Non-standard accessories include:
•
•
•
7
CHANGEOVER TIME
7.1
The Coordinator Fleet and Procurement will decide changeover time based on
proper assessment of the following:
•
•
•
•
•
•
•
8
Market conditions
Model release dates
Warranty conditions
Local market conditions
Capital and whole of life costs
Government contract requirements
Government tax arrangements.
CONDITIONS
8.1
8.2
5.5.29
Tow bars
Roof racks
Items not specified in 5.2.
The vehicle may only be driven by the following people:
8.1.1
An employee of Council holding an appropriate current Driver’s
Licence.
8.1.2
The spouse/partner of the employee named in the Agreement.
8.1.3
The children of the employee named in the Agreement, provided that
children under the age of 25 are accompanied at all times by the
employee or his/her spouse.
8.1.4
Any holder of an appropriate current
accompanied by the Council employee.
8.1.5
In emergency circumstances, any licensed driver authorised by the
Council employee.
drivers
licence
when
Should the employee authorise a driver under 25 years of age other than
another Council employee, to drive the vehicle and the vehicle is involved in
Page 5 of 7
an accident then the employee shall pay to Council any excess not met by
the Council’s insurance company due to the driver’s age within 30 days of
receiving an invoice from Council.
9
8.3
The maximum period for which a vehicle can be used by an employee on
annual or long-service leave is nine (9) consecutive weeks. Family leave, sick
leave or workers compensation absences of two (2) consecutive weeks or
more are at the discretion of the relevant Director who may approve an
extended period provided the vehicle is not required for Council purposes
during the absence of the employee concerned.
8.4
Leaseback drivers will be given one month’s notice of intention to replace
their current vehicle. A list of available vehicles, lease back rates and
anticipated delivery time will be supplied with this notice.
8.5
If a driver is convicted of driving under the influence of alcohol or other
banned drug or substance resulting from an accident involving a Council
vehicle the leaseback holder must pay the total cost of repairs and/or
restitution arising out of the accident in the event that Council’s insurers
deny any insurance claim within 30 days of receiving an invoice from Council.
8.6
The vehicle shall not be used for any commercial purpose or in any activity
where the lessee derives an income which is not related to the lessee’s
employment with the Council.
8.7
Council is to provide comprehensive insurance cover for the vehicle whilst the
vehicle is used for either business or private use.
8.8
The insurance policy does not provide cover for the loss of personal
possessions or equipment that are damaged, lost or stolen from the Council
vehicle. The cost of any loss or damage to personal property from the vehicle
is to be borne by the employee.
8.9
A leaseback driver involved in more than one at fault accident per year,
subject to an investigation, may be required to pay the insurance excess
applicable within 30 days of receiving an invoice from Council.
LEASEBACK CONTRIBUTION RATES
9.1
The leaseback contribution payment for full private use (category 2 and 3) of
a vehicle is in accordance with the following schedule.
Class
Class
Class
Class
1
2
3
4
Vehicles
Vehicles
Vehicles
Vehicles
$84.65 per week
$112.80 per week
$133.95 per week
Rate charged will include all additional
costs of operating the vehicle as
determined by the Coordinator Fleet and
Procurement.
The leaseback contribution payment for full private use (category 1) of a
vehicle is in accordance with the signed total remuneration package of the
General Manager or Director.
Staff may salary sacrifice to pay a portion of this weekly lease fee subject to
Award and ATO limitations. Staff should see the Coordinator Fleet and
Procurement about this option.
9.2
5.5.29
The leaseback contribution will be reviewed annually by the General Manager
and may be increased on 1 April each year, at the discretion of the General
Page 6 of 7
Manager. Employees with a leaseback arrangement will be given at least two
(2) months’ notice of any payment variation.
In accordance with the Local Government (State) Award 2010, such increase
in any one (1) year shall not be more than ten (10) percent or the
percentage movement on the index figure published by the Australian
Bureau of Statistics for Eight Capitals, private motoring sub-group (Cat No
6401.0), whichever is the greater.
10
11
FRINGE BENEFIT TAX
10.1
Employees will pay any Fringe Benefits Tax (FBT) liability that might arise
from the private use of vehicles provided under this Agreement where any
salary sacrifice amount has been made.
10.2
It is in Council’s and employee’s interests that the annualised kilometres
travelled by a vehicle allows the application of the lowest possible statutory
fringe benefits tax percentage rate. In order to optimise the distance
travelled by all vehicles some staff may be requested to use alternate
vehicles for a period of time to minimise the fringe benefits tax payable.
TERMINATION
11.1
Non-compliance with the terms and conditions of this agreement may
preclude the employee from further use of the vehicle.
11.2
Abuse or misuse of the vehicle or Fuel Card will lead to disciplinary action
being taken which may include the termination of the leaseback agreement
on one day’s notice.
11.3
The employee may terminate this agreement by giving two weeks written
notice to the Coordinator Fleet and Procurement.
11.4
12
13
Council may terminate this agreement by giving 12 months’ written notice
of its intention to do so in accordance with the Local Government (State)
Award. Any decision to terminate this agreement must be made in
consultation with the relevant union.
LOG BOOKS
12.1
Employees will not be required to maintain log books on a permanent basis.
The Manager Finance may require employees to prepare log books for a
maximum period of 13 weeks annually in order to monitor the proportions
of business and private use.
12.2
Should log books be required for Fringe Benefits Tax or any other legislated
purpose they will be implemented so as to comply with the relevant
legislation.
VEHICLE LEASEBACK TERMS AND CONDITIONS
13.1
Employees who accept private use of a vehicle under a leaseback
agreement must sign a copy of Council’s Motor Vehicle Leaseback or
Commuter Use Agreement Terms and Conditions before private use is
granted. See Appendix 1.
VARIATION
The Council reserves the right to vary the terms and conditions of this Agreement subject
to two (2) month’s written notice to the employee. In accordance with the Local
Government (State) Award, such variations will be referred to the Consultative Committee.
5.5.29
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MOTOR VEHICLE
LEASEBACK OR COMMUTER USE
AGREEMENT
and
TERMS AND CONDITIONS
5.5.29/5.5.63
Page 1 of 9
Contents
1
OWNERSHIP OF MOTOR VEHICLE .............................................................................. 3
2
VEHICLE TYPES AND ALLOCATION ............................................................................ 3
3
VEHICLE USE ............................................................................................................. 3
4
VEHICLE AVAILABILITY DURING PERIODS OF LEAVE ............................................... 4
Annual and Long Service Leave ...................................................................................... 4
Parental Leave ............................................................................................................. 4
Sick Leave, Carer’s Leave and Workers Compensation Absences ........................................ 4
5
AUTHORISED DRIVERS.............................................................................................. 4
6
LEASEBACK CONTRIBUTION PAYMENTS .................................................................... 5
Review of Leaseback Contribution Payments .................................................................... 5
Payment of Leaseback Contributions by Payroll Deduction ................................................. 5
7
NON STANDARD VEHICLE ACCESSORIES ................................................................... 5
Tow Bars and Roof Racks .............................................................................................. 5
Other Accessories......................................................................................................... 5
8
PETROL AND OTHER CONSUMABLES.......................................................................... 6
9
VEHICLE LOG BOOKS ................................................................................................. 6
10
EMPLOYEE RESPONSIBILITIES .................................................................................. 6
11
BREAKDOWNS AND REPAIRS ..................................................................................... 7
12
ACCIDENTS ................................................................................................................ 7
13
TRAFFIC AND PARKING INFRINGEMENTS .................................................................. 7
14
THE COUNCIL’S RESPONSIBILITIES........................................................................... 7
15
MOTOR VEHICLE LEASEBACK OR COMMUTER USE AGREEMENT .................................. 7
16
TERMINATION ........................................................................................................... 7
Termination by the Council ............................................................................................ 7
Termination by the Employee ........................................................................................ 8
Employee’s Obligations on Termination ........................................................................... 8
17
VARIATION ................................................................................................................ 8
MOTOR VEHICLE LEASEBACK OR COMMUTER USE AGREEMENT – SCHEDULE A..................... 9
5.5.29/5.5.63
Page 2 of 9
MOTOR VEHICLE LEASEBACK OR COMMUTER USE AGREEMENT
Agreement made this date _______________ between the Kempsey Shire Council
(hereinafter referred to as “the Council”) of the one part and ________________________
(hereinafter referred to as “the employee”) of the other part.
Council is the owner of the motor vehicle to which this Agreement applies and has
determined that the employee may have private use or commuter use of this
vehicle. The use of the vehicle shall be subject to the following terms and
conditions:
1
OWNERSHIP OF MOTOR VEHICLE
The employee acknowledges that the motor vehicle is the property of Kempsey
Shire Council.
2
VEHICLE TYPES AND ALLOCATION
The Council reserves the right to operate its vehicle fleet in the most cost effective
manner including the rotation of vehicles and, depending on prevailing market
conditions, may decide to reduce or extend the holding period and/or vary the type
of vehicles purchased and allocated at any time. Vehicles will be replaced at the
optimum replacement interval as determined by the Council.
Subject to specific operational requirements, vehicles will be provided under this
Agreement in accordance with Council’s Motor Vehicle Leaseback Procedure and will
generally be automatic sedans, hatchbacks, wagons, light four wheel drives or two
wheel drive sports utility vehicles.
3
VEHICLE USE
The vehicle allocated under this Agreement is to be used in a lawful and responsible
manner for normal personal and private use or commuter use, in accordance with
the vehicle’s design parameters. The employee is not to use the vehicle for:
•
Any unlawful purpose.
•
Conducting any private business or commercial activities or any other activity
for personal reward or gain.
•
Carrying passengers in excess of that for which the vehicle in constructed,
registered or licenced, or contrary to manufacturer’s recommendations.
•
Carrying, hauling or towing loads in excess of that for which the vehicle is
constructed, registered or licenced, or contrary to manufacturer’s
recommendations.
•
Participation or involvement in any race, speed testing or speed trial, reliability
trial, stunt, rally or other motor sport activity or event.
•
Any activity that jeopardises the vehicle’s structural or mechanical integrity.
The vehicle will form part of the Council’s car pool and be available for the Council’s
use during normal working hours except for periods of approved leave or the
employee’s rostered day off. The vehicle may be used by any member of staff
holding an appropriate licence.
5.5.29/5.5.63
Page 3 of 9
4
VEHICLE AVAILABILITY DURING PERIODS OF LEAVE
Where the employee is absent on approved leave in excess of one (1) week and
does not require private use of the vehicle, the vehicle shall be returned to the
appropriate vehicle pool and be made available for general use.
Annual and Long Service Leave
The maximum total period for which the vehicle can be used while on leave is
nine (9) weeks in any calendar year. Any greater period shall be subject to
approval by the Council’s General Manager.
Parental Leave
The maximum period the vehicle may be used is nine (9) weeks, in line with
Award paid parental leave provisions.
Sick Leave, Carer’s Leave and Workers Compensation Absences
The maximum period for which the vehicle may be used while on extended
sick/carer’s leave or absences under workers compensation is two (2) weeks.
Any greater period shall be subject to review by Council’s relevant Director,
who may require the employee to return the vehicle to the appropriate vehicle
pool for general use.
Leaseback payments during any leave period that the employee does not have
private use of the vehicle will be suspended until private use resumes.
Vehicles provided for commuter use are not available for use during periods of an
employee’s leave.
5
AUTHORISED DRIVERS
Category 1, 2 and 3 vehicles may only be driven by licenced drivers (including
provisional licence holders) who fall within one of the following categories:
•
The employee named in this Agreement or his/her spouse (married or de-facto,
including same sex relationships).
•
The children of the employee named in this Agreement, provided that children
under the age of 25 are accompanied at all times by the employee or his/her
spouse.
•
Other licensed drivers, provided they are accompanied at all times by the
employee.
•
An officer or councillor of Kempsey Shire Council.
•
Other persons in instances where the Council’s General Manager has specifically
permitted such use.
The employee’s children are also permitted to drive the vehicle as learner drivers,
provided they hold the appropriate learners permit and are accompanied at all times
by the employee or his/her spouse in accordance with applicable driving laws.
In the event of an emergency, the vehicle may be driven by a licenced driver
without prior authorisation and without the employee as a passenger. The employee
shall advise the Council’s relevant Director in writing as soon as possible after an
event of this type or, if the employee is a Director, the Council’s General Manager.
5.5.29/5.5.63
Page 4 of 9
Category 4 vehicles must only be driven by an employee of Council who holds an
appropriate current Drivers Licence. In the event of an emergency the vehicle may
be driven by any licenced driver.
6
LEASEBACK CONTRIBUTION PAYMENTS
•
The leaseback contribution payment for full private use of the vehicle is detailed
in part 9.1 of the Council Motor Vehicle Leaseback Procedure.
•
The commuter use contribution payment for commuter use only (to and from
work) is detailed in part 6.1 of the Council Motor Vehicle Commuter Use (Home
Garaging) Procedure.
Review of Leaseback Contribution Payments
The leaseback and commuter use contribution will be reviewed annually by the
Council’s General Manager and may be increased on 1 April each year, at the
discretion of the General Manager. The employee will be given at least two (2)
months’ notice of any payment variation.
In accordance with the Local Government (State) Award 2010, such increase in any
one (1) year shall not be more than ten (10) percent or the percentage movement
on the index figure published by the Australian Bureau of Statistics for Eight
Capitals, private motoring sub-group (Cat No 6401.0), whichever is the greater.
Payment of Leaseback Contributions by Payroll Deduction
Leaseback or commuter use contribution payments are payable weekly by payroll
deduction from the employee’s pay.
7
NON STANDARD VEHICLE ACCESSORIES
The vehicle shall not be modified in any way by the employee. All requests for
vehicle modifications must be made via the Council’s relevant departmental
Director.
Tow Bars and Roof Racks
Where required by the employee, the Council will supply and fit a tow bar and/or
roof rack. The employee will pay for the full cost of purchasing and fitting the first
tow bar/roof rack within 30 days of receiving an invoice from Council. The employee
is responsible for paying for the first towbar/roof rack regardless of whether or not
the leaseback agreement continues.
Tow bars and roof racks purchased and fitted in this manner will remain with the
vehicle when it is sold or otherwise disposed of. The Council will pay for the
purchase and fitting of any subsequent tow bars/roof racks required by the
employee.
Other Accessories
Fitment of accessories apart from tow bars and roof racks will be approved on a case
by case basis. If approved, the employee must provide the accessory and pay any
costs of fitting the accessory upfront. The accessory will remain the property of the
employee.
The cost of removal and installation on new vehicles will be the responsibility of the
employee, as will the costs of any repairs to the vehicle resulting from the use of the
accessory. These costs will be paid in full as incurred.
5.5.29/5.5.63
Page 5 of 9
8
PETROL AND OTHER CONSUMABLES
Petrol and other consumable items shall be provided by the Council where
purchased in New South Wales. All fuel purchases are to be made using the Council
issued fuel card, except where exceptional circumstances prevent the use of the
card. Fuel purchased outside New South Wales will be met by the employee.
Receipts from any purchase of petrol or other consumable item are to be retained by
the employee and submitted to the Council’s Finance Section as required.
9
VEHICLE LOG BOOKS
If required, the employee will complete a vehicle log book as provided by the Council
and submit a declaration detailing the number of private kilometres driven during
the reporting period, usually three monthly.
10
EMPLOYEE RESPONSIBILITIES
The employee is responsible for:
•
Complying with all relevant road rules and laws.
•
Regularly cleaning the vehicle.
•
Ensuring regular checking of engine oil, engine coolant and tyre pressures.
•
Ensuring services are completed as per manufacturers’ recommendations.
•
Reporting any defects or damage to the vehicle to the Coordinator Fleet and
Procurement.
•
Complying with the Council’s Smoke Free Workplace Policy by not smoking in
the vehicle or allowing others to smoke in the vehicle.
•
Garaging the vehicle in a secure off street location (if possible under cover).
•
Locking the vehicle when not in use and removing or concealing any equipment
that may attract the attention of thieves.
•
Returning the vehicle to the appropriate vehicle pool if leave periods set out in
Clause 4 (Vehicle Availability During Periods of Leave) of this Agreement are
exceeded.
•
Recording private and business use in log books during all periods of vehicle
operation, as required.
•
The reimbursement to Council of any fringe benefit tax liability that might arise
from the use of a Council motor vehicle under this Agreement.
•
Ensuring that only persons permitted to drive the vehicle, as set out in Clause 5
(Authorised Drivers) of this Agreement are allowed to drive the vehicle.
•
Not driving under the influence of alcohol or drugs, or without a current driver’s
licence.
Breaches of the above conditions may result in the immediate termination or
suspension of the employee’s Motor Vehicle Leaseback or Commuter Use
Agreement.
5.5.29/5.5.63
Page 6 of 9
11
BREAKDOWNS AND REPAIRS
In the event of a breakdown, the employee is to utilise the services of the vehicle’s
NRMA Roadside Assistance Program.
Should the breakdown occur in a location away from the Council area, the employee
may arrange urgent repairs. Reimbursement will be made to the employee, upon
production of receipts.
The Council will charge the cost of repairs to the employee if such repairs are the
result of wilful negligence, carelessness of the employee, or from using the vehicle
in a manner that is contrary to this Agreement.
12
ACCIDENTS
In the event of an accident, the employee must contact the Coordinator of Fleet and
Procurement as soon as possible following the accident and complete a Motor
Vehicle Insurance Claim form.
Excess payable on insurance claims will be paid for by the Council except where the
damage has been caused by wilful negligence, carelessness or the employee, or
from using the vehicle in a manner that is contrary to this Agreement and Council’s
Motor Vehicle Leaseback Procedure, in which case the employee will be responsible
for payment of any insurance excess.
13
TRAFFIC AND PARKING INFRINGEMENTS
The employee will be responsible for full payment of the fine if he or she is fined for
infringing any traffic or parking rule or law.
If the employee is convicted of driving under the influence of any drug or
intoxicating liquor, he or she will be personally liable/responsible for any loss or
damage to the Council’s or any third party’s property arising from driving under the
influence. This would include payment of any claim for damage, injury or fine
resulting from litigation.
If the employee has his or her driving licence suspended or cancelled for a breach of
any road rules or laws, the employee will automatically have the Motor Vehicle
Leaseback or Commuter Use Agreement suspended. On regaining a licence, the
employee may apply for reinstatement of his or her Motor Vehicle Leaseback or
Commuter Use Agreement.
14
THE COUNCIL’S RESPONSIBILITIES
The Council shall be responsible for the cost of all repairs, servicing, maintenance,
registration and insurance of the vehicle, except where such maintenance and
repairs occur as a result of the employee breaching any part of this Agreement.
15
MOTOR VEHICLE LEASEBACK OR COMMUTER USE AGREEMENT
Schedule A to the Motor Vehicle Leaseback or Commuter Use Agreement must be
accepted and signed by the employee and signed by the Council’s relevant Director
or General Manager before any leaseback arrangement takes effect.
16
TERMINATION
Termination by the Council
a)
The Motor Vehicle Leaseback or Commuter Use Agreement may be terminated
by agreement at any time.
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b)
Where a vehicle is provided to an employee as a condition of employment the
arrangement may only be terminated by agreement. (Leaseback Categories 1
and 2).
c)
Where a vehicle is provided to an employee as a discretionary benefit the
arrangement Council shall give a minimum of six (6) months’ written notice of
the arrangement (Leaseback Category 3 and 4).
Notwithstanding the above where the leaseback vehicle agreement was
entered into prior to 1 November 2010, the Council shall give a minimum of 12
months’ notice to terminate the agreement.
Notwithstanding the above where a commuter use agreement was entered into
prior to 3 November 2011, the Council shall recognise the agreement as a
term or condition of employment.
d)
Should the employee cease employment with the Council, lose his or her
licence, seriously breach this Agreement, or accept a new position with the
Council that does not include a leaseback vehicle, the Council may terminate
or suspend the Motor Vehicle Leaseback or Commuter Use Agreement without
notice.
e)
Where the vehicle is provided on a temporary basis the agreement may be
terminated by the Council without further notice at the end of the agreed
leaseback period.
Termination by the Employee
Where a vehicle is provided to the employee under Category 1 or Category 2 of the
Council’s Motor Vehicle Leaseback Procedure, the Motor Vehicle Leaseback or
Commuter Use Agreement may be terminated by the employee with four weeks
written notice.
Where a vehicle is provided to the employee under Category 3 or Category 4 of the
Council’s Motor Vehicle Leaseback Procedure or Council Motor Vehicle Commuter Use
(Home Garaging) Procedure, the Motor Vehicle Leaseback or Commuter Use
Agreement may be terminated by the employee by giving two weeks written notice.
Employee’s Obligations on Termination
Upon termination of the Motor Vehicle Leaseback or Commuter Use Agreement, the
vehicle, keys and any other associated items included with the vehicle shall be
returned to the Council prior to or on the date of termination.
All expenses and obligations arising from the Motor Vehicle Leaseback or Commuter
Use Agreement shall be paid by the employee prior to termination or deducted by
the Council from the employee’s final pay.
17
VARIATION
The Council reserves the right to vary the terms and conditions of this Agreement
subject to two (2) month’s written notice to the employee. In accordance with the
Local Government (State) Award, such variations will be referred to the Consultative
Committee.
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MOTOR VEHICLE LEASEBACK OR COMMUTER USE AGREEMENT – SCHEDULE A
This Schedule replaces and supersedes any previous Schedule. The Schedule will be
amended over the life of the Agreement in accordance with Clause 6 and Clause 17.
Part A: Term of Agreement (tick appropriate box)
 This schedule operates from ______________ (insert date) and remains in force unless terminated or varied in
accordance with Clause 16 or Clause 17 of the Agreement.
 The right to private use of a Council vehicle is temporary and only applies for a period of ____________ weeks
from _________________ to _________________ inclusive.
Part B: Vehicle Details
The vehicle is provided under the following Leaseback Vehicle Category as set out in Council’s Motor Vehicle Leaseback
Procedure or Council Motor Vehicle Commuter (home garaging) Procedure. (Tick box as appropriate)
Vehicle Category:
 Category 1
 Category 2
 Category 3
 Category 4
Description of Vehicle:
The Vehicle will be parked off street at:
Part C: Accessory Details
Accessories to be fitted at the employee’s expense (Clause 7):
Tow Bar
 YES
 NO
Roof Rack:
 YES
 NO
Other:
 YES
 NO
Specify:
Part D: Contribution Details
Contribution Payments to be Applied (Clause 6):
Full Private Use (Leaseback Vehicle Class 1)

$84.65 per week
Full Private Use (Leaseback Vehicle Class 2)

$112.80 per week
Full Private Use (Leaseback Vehicle Class 3)

$133.95 per week
Full Private Use (Leaseback Vehicle Class 4)

$
per week
Commuter Use Only (Vehicle Category 4)

$
per week
Part E: Authorisation
I, _________________________________ (name) hereby acknowledge that I have read, understand and accept
the terms and conditions of Kempsey Shire Council’s Motor Vehicle Leaseback Procedure/Council Motor
Vehicle Commuter Use (Home Garaging) Procedure and Motor Vehicle Leaseback or Commuter Use
Agreement.
I authorise payroll deductions of $__________ per week to pay my vehicle leaseback contributions in accordance
with the terms and conditions in the Agreement, commencing _____________ (date). I further authorise the Council
to deduct any money owed by me under this Agreement from my final pay, in the event that this Agreement ceases
as a result of the termination of my employment.
I acknowledge that this Agreement is provided under Leaseback Vehicle Category 3 in Council’s Motor Vehicle
Leaseback Procedure or Category 4 in Councils Motor Vehicle Commuter Use (Home Garaging) Procedure and as such
does not constitute a condition of my employment as defined by the Local Government (State) Award. (Delete this
paragraph if not applicable)
Employee Signature:
Date:
General Manager/Directors Signature:
Date:
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