MOTOR VEHICLE PRIVATE USE PROCEDURES
INTRODUCTION
The Vice-Chancellor formalised in January 2005 a range of options for those staff entitled to a motor vehicle benefit as part of their salary package under HR delegations 3.37, 3.38 and 3.39.
The option that best suits your Business Unit should be discussed with the delegate. If the delegate indicates that you are entitled to move from the current, tiered vehicle arrangement (now called Option 1), please consider in detail the various options and obtain independent salary and tax advice.
A matrix summarising the options and linking you to the respective agreements (which outline the detailed terms and conditions of each option is available here.
Staff with an entitlement under Finance delegate 4.14 should refer to the Home Garaging policy for further information.
DEFINITIONS OF USE
All vehicles purchased from University Funds are to be used exclusively for University purposes unless approved otherwise. The ‘private’ use of some vehicles is permitted when negotiated in a contract of employment/ salary packaging arrangement or approved by the Vice-Chancellor or agent of the Vice-Chancellor (holder of HR Delegation 3.37, 3.38, 3.39).
Although available for 'private use' the University makes a clear distinction between the use that may be made of its vehicles, and the use a staff member might make of a car that was 'privately-owned'.
Private Use (Full) - is the permitted use by the ‘designated staff member’ (sometimes an incumbent of an approved Office) of a University Motor Vehicle for purposes ‘other than University purposes’. The obligations of the ‘designated’ staff member will vary depending on the approved vehicle option taken by the staff member (refer Part B).
Private Use (Conditional) - is the limited but permitted private use by the ‘designated staff member’ of a University Motor Vehicle for purposes ‘other than University purposes’. Limitations of use might be determined either as a condition of a contract of employment or by negotiation prior to the Vice-Chancellor or agent of the Vice-Chancellor (holder of HR delegation 3.37, 3.38 or 3.39) approving private use. For examples of conditional use please refer to Part B.
Home Garaging - is the permitted use by a member of staff to operate a University vehicle between the usual place of work at the University and the place of residence of that member of staff. Such use is permitted for persons who are designated by a delegated officer (namely holder of finance delegation 4.14).
AGREEMENTS
All members of staff who have vehicles made available for:
· Full private use;
· Conditional private use; or
· Home garaging.
Must complete a:
· Vehicle Private Use Authority and Conditions of Use form (Part B of this document);
· Home garaging approval form; and
· Have regard to the procedures outlined in the ANU Vehicle Management procedures.
FRINGE BENEFITS TAX
Fringe Benefits Tax is payable on vehicles used for private use. The provision of home garaging may also result in a Fringe Benefits Tax liability being incurred for the University and a reportable Fringe Benefit being incurred for the staff member.
Finance & Business Services require the following information to determine the taxable value of motor vehicle fringe benefits:
- odometer readings (through use of a University endorsed Leaseplan Caltex fuel card);
- any employer contributions towards running costs; and
- number of days the vehicle is not home garaged.
Finance and Business Services is required to report the above information up to 31 March each year and will request the necessary information from the relevant Budget Unit.
Logbooks
For staff entitled to:
· conditional private use; or
· home garaging.
a logbook must be completed at all times. This is also required where there is full private use of a potential ‘exempt’, FBT vehicle, eg utility.
The Budget Unit will then be required to determine the best way to calculate the FBT entitlement.
Fringe Benefits Tax (F&BS)
VEHICLE PRIVATE USE AUTHORITY AND CONDITIONS OF USE
There are a set of forms and agreements for completion by staff with:
· an entitlement to a motor vehicle (or cash out benefit) as part of their salary package; or
· an entitlement to the full private use or conditional private use of a University vehicle as specified by the Vice-Chancellor.
The form and agreement(s) must be completed as specified throughout. The original must be placed on the personnel file and copies as relevant provided to your Business Office and or F&BS/UFS (University Fleet Services).
The contents of these forms outline the University’s obligations in relation to support for the vehicle provided and the expectations of the University.
Page 1: To be completed by all staff (and delegate) where there has been a decision made to provide a salary package benefit motor vehicle or allowance in accordance with HR delegations 3.37, 3.8 and 3.39.
Annexure A: Option 1 - Conditions of Use
To be completed by staff taking the standard ANU motor vehicle of the state governement contract – Option 1.
Annexure B: Option 2 - Conditions of Use
To be completed by staff approved to access a motor vehicle benefit through the Motor Vehicle Costing method – Option 2.
Annexure C: Option 3 - Cash Out Benefit Agreement
Terms and conditions of the motor vehicle allowance for those staff approved to access a motor vehicle benefit through the ‘cash’ out option – Option 3.
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