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APPENDIX 1 - SESSENIOR OFFICER MOTOR VEHICLE CHARGES 2009-2010

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APPENDIX 1 - SESSENIOR OFFICER MOTOR VEHICLE CHARGES 2009-2010 Powered By Docstoc
					APPENDIX 1 - SES/SENIOR OFFICER MOTOR VEHICLE CHARGES 2009-2010

Lease Costs
Purchase Price of          $ cost of vehicle including GST and all accessories for business or
vehicle                    private use.
Lease Payment              $ payment payable each month to StateFleet in respect of the vehicle
                           lease (or calculated lease payment in respect of agency owned vehicles).

Running Costs (fuel; tyres; servicing and repairs)
Vehicle Category         Item                     Cost (cents   Comment/Example
                                                   per km)
Passenger                Hybrid                      10.6       Prius; Civic
                         Light                       13.5       Fiesta; Colt; Yaris; Barina, Polo, Rio
                         Small                       15.1       Focus; Astra; Corolla; Tiida; Lancer:
                                                                I30 ; Cerato ; Impreza ; Golf
                         Medium                      18.2       Camry4; Sonata; Liberty; Epica;
                                                                Magentis; Passat
                         Large–standard              19.3       Falcon; Commodore; Aurion
                         Large–LPG                   14.3       Falcon Egas; Commodore VE
                         Large-Performance           26.5       SS Commodore; XR8; XR6 Turbo
                         Upper Large                 24.9       Statesman; Caprice; Calais V8
                         (Executive)
                         People Mover                19.7       Tarago; Avensis; Carnival; Imax,
                                                                Rondo; Caddy

Sports Utility Vehicle   Compact                     19.7       Rav4; Forester; Outback; Xtrail;
                                                                Outlander; Tuscon; Sportage
                         Medium                      24.2       Territory; Prado; Tribeca; Kluger;
                                                                Pajero; Captiva; Santa Fe; Murano
                         Large                       23.9       Landcruiser; Patrol


Commercial               Utility                     19.3       Commodore; Falcon; (2 seater)
                         Crew / Dual Cab             23.7       Hilux; Triton; Rodeo; Navara



Standing Costs
Element                  Item                    Cost           Comment/Example
Comprehensive Insurance (includes GST)
                     Passenger                       683        See Running Cost list above
                     SUV/Commercial                  922        See Running Cost list above


Compulsory Third Party Insurance (includes GST)
                      Sydney                         365        Greater metropolitan area
                      Wollongong                     328        “         “          “
                      Newcastle/Cent Cst             294        “         “          “
                      Country                        284

Registration fee including Tare Weight Tax      (GST Exempt)
                        Up to 975kg                  329        Yaris
                        976 – 1154kg                 363        Fiesta; Corolla; Colt; Barina
                        1155 – 1504kg                415        Sonata; Camry4; Astra, Forester; Prius
                        1505 – 2504kg                599        Commodore; Falcon; 380; Aurion
                                                                Outback; Pajero; Landcruiser etc

NRMA membership      (includes GST)
                         Joining Fee                    72      Only applied in first year
                         Annual fee                     72
                         Fee for Service                 0
Taxation
Parking Tax (as issued by the OSR at 1st July each year )
        st
From 1 July 2008           Category 1                     $950    Sydney; North Syd; Milsons Point.
(currently see C2008-27)   Category 2                     $470    Parra; Chatswood; Bondi J; St Leonds

      st
From 1 July 2009           Category 1                  $2,000     Sydney; North Syd; Milsons Point.
(See also note under)      Category 2                   $710      Parra; Chatswood; Bondi J; St Leonds


Gross Up Factor            C2006-18 advice             1.8691     FBT rate of 0.465


Statutory Factor           < 15000kms pa             26% (0.26)
                           15000 - 24999             20% (0.20)
                           25000 – 40000             11% (0.11)
                           > 40000                   7% (0.07)


APPENDIX 2: NOTES ON SES/SENIOR OFFICER MOTOR VEHICLE PACKAGES
2009 – 2010

Lease Fee
A “lease fee” figure must be included in the calculation of a package regardless of whether
the vehicle is leased from StateFleet or agency owned. This is because there is a cost to the
agency for that vehicle even when it is owned. No package is to be calculated with a minimal
or agency determined lease fee.

As such, for agency owned vehicles, a lease calculation must be obtained from StateFleet for
an equivalent make/model and term based on kilometres to be travelled annually so charges
remain consistent across government. Where an agency has calculated an internal lease rate
consistent with industry lease calculations, this also should be confirmed with StateFleet. The
lease payment must include GST.

Parking Space Levy

Parking space levy fees apply from 1 July each year. These are generally advised by a
separate Circular. However the Mini Budget released by the NSW Government in November
2008 identified that there would be substantial increases in the Parking Space Levy from 1
July 2009.

The Parking Space Levy is to be collected in full from the officer who has a vehicle under a
salary sacrifice arrangement and who is provided with a parking space where the levy
applies. There is no proportioning of the levy (eg by business/private split). The only
“proportioning” that would occur is at a reconciliation of a package where the officer has not
held the spot for the entire FBT year. In almost all instances, there would be no exemption in
accordance with Section 7 of the Parking Space Levy Act. Any request for exemption for an
officer should be referred to the contacts in this circular.

(See also note in Appendix 3 on calculation and collection of Parking Space Levy over whole year)
Changes in charges from Department of Premier and Cabinet Circular 2008-14

Running Costs
The major change to Running Costs has been due to the fluctuations in the price of fuel over
the last 12 months. The average price of fuel has decreased slightly in the last year. The rate
used in the calculations is from the NSW Government Fuel contract. The price excludes GST.

At the same time there has been a slight increase in the cost of maintenance including tyres
and labour. The figures in Appendix 1 reflect these variations and are taken into consideration
with the expected trend over the next 12 months.

Standing Costs
CTP insurance is provided by contract to the NSW Government and the prices in Appendix 1
reflect the contract figures. There have been gradual increases in CTP over the year. Weight
Taxes have increased marginally. Comprehensive Insurance charges are provided by GIO on
behalf of the Treasury Managed Fund and reflect claims history and future liabilities.

Input tax credits (ITC) are available for CTP insurance. Since 1 July 2003, CTP insurers have
been issuing tax invoices for policies commencing after 30 June 2003 and GST registered
entities will be entitled to claim an ITC on the GST component.

Reconciliation
Reference is made to the changes made in the Motor Vehicle Policy for NSW Government
agencies – Clause 3.5. Reconciliation of all packages is to be done as at 31 March (end of
FBT year) and not at the anniversary of the package.

Reportable Fringe Benefits
Changes to fringe benefits tax rules, effective from 1 April 2007, exempt the reporting of
pooled car fringe benefits on employee's payment summary. A pooled or shared car is one
provided by an employer for the private use of two or more employees. It is not NSW
Government policy to have individual salary packaging arrangements that result in a car
benefit for more than one employee.


APPENDIX 3: COMPONENTS IN CALCULATING A PACKAGE

Purchase Price and FBT
The purchase price is the invoiced value of the vehicle including all accessories and options
whether used for business or private use. Accessories are those generally purchased from a
dealer or third party as options or after market fittings (eg towbar, driving lights etc).
StateFleet leased vehicles generally have the accessories included in the capital cost. For
owned agency vehicles, which are subsequently salary sacrificed, the accessories must be
added into the purchase price for the calculation of the package and FBT.

The NSW Government has decided that the FBT charge for salary packaging arrangements
in all Government agencies will use the lower gross up rate. Under this arrangement the
employee bears the GST inclusive cost of relevant expenses, but is charged FBT at the lower
rate. As such GST is included on those items not exempt from the payment of GST.

Lease Payments
The lease payment is a calculated fee incorporating the components of purchase price,
residual value, Treasury interest rates and the lease term of the vehicle. The lease payment
also includes GST.

Running Costs
The running costs on the vehicle are calculated to include the cost of fuel, servicing, general
maintenance such as oil and tyres, and repairs (non insurance).

The vehicle categories in Appendix 1 are consistent with Australian Bureau of Statistics
reporting categories for motor vehicles and the industry standards. As such the Sports Utility
Vehicle (SUV) category is included and consolidates the 4WD and AWD. Vehicles
categorised as commercial, which are salary sacrificed, are not exempt from the payment of
FBT under the FBT Assessment Act 1986. As such they are to be treated in the same way as
‘passenger’ vehicles and costed accordingly.

Standing Costs
CTP is applicable and paid based on the agency garaging address of the vehicle and not the
private officer’s address.

For vehicles leased from StateFleet, no registration fee is to be charged to an officer in the
first year of holding of the vehicle because this fee is included in the lease fee for that year.

This has in the past caused some confusion for agencies as to whether this meant the FBT
year or first 12 months of holding. StateFleet have developed a simpler arrangement that will
assist and agencies should use the following formula to remove the registration fee from the
lease fee. When the adjusted lease fee is used in package calculations, the officer should be
charged the full registration fee in the package as listed in this Circular.




NRMA membership is applied to packages where an agency has a specific account with the
NRMA and pays the annual fee for the car to be covered. If an agency has elected to have a
“Fee for Service” arrangement with the NRMA, no cost is payable by the officer.

Where a manufacturer has a “roadside assist package” as part of the vehicle cost, similarly no
fee is to be charged to the officer.

Taxation
The Office of State Revenue (OSR) revises the Parking Space Levy annually for parking
spaces in prime business districts. The levy commences on 1 July annually. In accordance
with Government policy to recover the full cost of the levy, the salary package must be
adjusted to accommodate the two charges, which may apply over the FBT year. This can be
done at reconciliation of the package or at the release of the new charges by the OSR.

The ‘gross up factor’ was amended in 2006 with the reduction of the FBT tax rate from 0.485
to 0.465.This was advised in Circular 2006-18. The NSW Government has determined it will
use the lower gross up rate in vehicle salary packaging arrangements. The Statutory Factor is
used in the Statutory Method calculation for FBT and is used in estimating package costs.
APPENDIX 4
Agencies have the option of using their own spreadsheet or database to calculate packages.
An electronic calculator is available from StateFleet. The calculator (example below) is
provided to identify the formulas and method of calculation to be used in determining a
package cost and to maintain consistency across Government agencies.

Motor Vehicle Salary Sacrifice Package Calculator*

        2009-10 Motor Vehicle Salary Sacrifice Package Calculator - Version 1.0

        DETAILS
        Officer Details:                         John Officer 123456 Manager Policy
        Vehicle Details:                         Mitsubishi Lancer 789123 AA11BB
        Registration Dates                       Regn date: 25-Jan-08 CED date:30-Jun-08
        Package Dates                            Package Start date: 01-Jun-09 Package Stop date:31-Mar-09
        Ownership                                LEASED

 Item            Cost Component                   Amount           Formula       Full Cost      Formula       Cost officer
   A    Purchase Price                            $20,300
   B    Purchase Price with GST                   $22,330
   C    Lease/Depn Payment (as adjusted)           $446
   D    Lease Payment with GST                     $491
   E    Private Use factor                         75%
   F    Annual Lease expense                                        D x 12        $5,888          FxE           $4,416

   G    Running Cost per Kilometre                 $0.151
   H    Annual Kilometres                          26500
   J    Annual Running Cost expense                                  GxH          $4,002          JxE           $3,001

   K    Comprehensive Insurance                     $683
   L    CTP                                         $365
   M    Registration (for full yr)                  $415
   N    NRMA                                         $0
   P    Annual Standing Cost expense                                (K to N)      $1,463          PxE           $1,097

   Q                               Subtotal                         F+J+P         $11,353        QxE            $8,515

  R1    Annual Parking Levy to 1/7                  $950           R1 x 0.25       $238                          $238
  R2    Annual Parking Levy from 1/7               $2,000          R2 x 0.75      $1,500                        $1,500
  R3                             Subtotal                                         $1,738                        $1,738

   S    Statutory Factor                             0.11
   T    FBT Gross Up factor                        1.8691
   U    FBT rate                                    0.465
   V    FBT expense                                              BxSxTxU          $2,135           V            $2,135

   W                            Grand total                       Q + R3+ V       $15,225    (Q*E) + R3 + V     $12,387

        * R1 = rate for 3 months to 30/6; R2 is rate for 9 months from 1/7

                                                                               Monthly Deduction Amt:           $1,032.24
                                                                               Fortnighly Deduction Amt:          $476.42


* provided by StateFleet Services.

				
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Description: APPENDIX 1 - SESSENIOR OFFICER MOTOR VEHICLE CHARGES 2009-2010