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.