Fleet Coordinator Induction

If you are new or returning to fleet coordination, this induction will help you

Fleet Coordinator Induction

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If you are new or returning to fleet coordination, this induction will help you.

  1. Contact Max Cummock from State Fleet, Department of Finance on 61 8 6551 1449 or max.cummock@finance.wa.gov.au 
  2. Contact approved fleet management organisation (FMO) Fleetcare on 1300 655 170
  3. Seek login for FMO web system
  4. Read and understand the WA Government Fleet Policy and Guidelines and General Agreement
  5. Check if your agency has its own fleet policy, service level agreement (SLA) and/or strategic fleet management plans and familiarise yourself with them
  6. Establish a log-on and for the electronic decision aid (eDA) for vehicle acquisition. This is where you can see what government vehicles are available
  7. Complete the ‘New Buyer Registration’ form if you are a new user
  8. Subscribe to State Fleet newsletters 
  9. Gain access and familiarise yourself with your agency’s internal vehicle booking systems and fleet asset register. The register will list your agency’s vehicles, vehicle types, and locations 
  10. Find out who is responsible for paying State Fleet and FMO invoices within your agency
  11. Complete the online Fleet Coordinator Induction below.

The role of the fleet manager

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State Fleet contracts the day-to-day management of fleet vehicles to a fleet manager. Currently this is Fleetcare.

Under the Motor Vehicle Fleet Services Common Use Agreement (CUA06916), agencies leasing vehicles from State Fleet must use Fleetcare to manage their fleet. The fleet manager must supply fleet management services to these agencies (see eDA under the documents tab). Agencies may have different requirements and can negotiate specific additional service components with the fleet manager -- such as ad hoc reports and management of other assets. The cost of any additional components will be negotiated to determine whether they will be included in the contract price.

The fleet manager needs a list of people to liaise within the agency. The Agency Fleet Coordinator should keep this list up to date, including the name of any new Agency Fleet Coordinator.

The fleet manager must manage vehicles for all agencies in accordance with State Fleet’s leasing, business and operating data requirements, complying with the WA Government Fleet Policy and Guidelines and other statutory requirements.

What is the difference between the fleet manager and State Fleet?

Fleetcare

Vehicle management Replacement vehicles Agency services
  • Fuel management
  • Infringement management
  • Roadside Assist
  • Data management and reporting
  • Accident management
  • Positioning of fleet assets by the fleet manager
  • Maintenance: routine, breakdowns (repairs) and warranty
  • Recall and un-roadworthiness notices
  • Use of contracted tyre and accessories contractors
  • Replacement program / additional vehicles
  • Fuel card(s)
  • Vehicle registration
  • Pre-delivery
  • Initial fleet data input
  • Decommissioning
  • Management of accessories
  • Supply and fit-out or transfer of equipment
  • Fleet management (routine) advisory services
  • Strategic advisory services
  • Fringe Benefits Tax management

State Fleet

Leasing Fleet policy Contract management
  • Create new leases
  • Bill agencies for rental
  • Terminate leases
  • Manage payments and vehicle loans
  • Manage changes to leases
  • Check and pay dealer invoices
  • Manage changes to cost centres and billing points
  • Manage financial reporting and budgeting
  • Assisting the Fleet Steering Committee Report to the Fleet Steering Committee and government
  • Manage policy documents and communications
  • Monitor polices and manage non compliance
  • Manage the Motor Vehicle Fleet Services CUA
  • Manage the Acquisition of Passenger and the Light Commercial Vehicles CUA
  • Update quarterly vehicle pricing in the eDA selection tools
  • Manage the Carbon Offset Credits Contract and quotes

Complimentary feedback and complaints resolution

State Fleet aims to continuously improve its services to agencies. It welcomes feedback on satisfaction levels under this contract or with the fleet manager’s performance.

Agencies dissatisfied with the service from the fleet manager, or with specific concerns, can discuss these directly with the fleet manager. The Contract Manager State Fleet can address any unresolved issues.

Ultimately, if the problem or issue is not resolved to the agency’s satisfaction, they can use the Department of Finance’s online complaints. Complimentary feedback, considerations and suggestions can also be sent through this online form.

Customer satisfaction survey

Each year State Fleet sponsors an independent customer satisfaction phone survey to gauge agency satisfaction with their fleet manager, State Fleet and the broader fleet management service arrangements.

Participation in these surveys can be anonymous.

State Fleet contracts the day-to-day management of fleet vehicles to a fleet manager. Currently this is Fleetcare.

The role of State Fleet

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State Fleet is part of the Department of Finance and manages whole-of-government fleet finance, fleet policy, contract management and training.

State Fleet also gives executive support to the fleet steering committee. The committee creates the overall fleet policy framework for public sector bodies, monitors agency compliance and addresses strategic fleet issues.

Fleet steering committee meetings

The fleet steering committee meets at least once a year, generally around August, when it considers changes to the private use contribution rates and policy matters.

Committee decisions are emailed to the chief executives of all client agencies. The letter is available to agency fleet coordinators either online or by email, and the contribution rates are posted on wa.gov.au 

Fleet steering committee members are:

  • Director General (chairperson, Department of Finance)
  • Public Sector Commissioner (Public Sector Commission)
  • Executive Director, Labour Relations (Department of Mines, Industry Regulation and Safety)
  • Executive Director, Government Procurement (Department of Finance)
  • Director of Resourcing (Department of Treasury).

The role of the committee is to:

  • implement the WA Government Fleet Policy and Guidelines
  • ensure this policy is current and aligned with government strategy
  • refine the policy as new issues develop
  • advise the Treasurer/Minister on government fleet issues
  • establish benchmarks and key performance indicators to measure agency fleet performance
  • review fleet performance across government
  • establish the mechanism for adjusting contribution rates for the Government Vehicle Scheme (GVS), and the Senior Officer Vehicle Scheme (SOVS)
  • develop the vehicle use conditions by officers under the GVS and SOVS
  • adjudicate special applications or exemptions
  • advise agencies on policy matters.

Government fleet policy

Government fleet policy is in the WA Government Fleet Policy and Guidelines on wa.gov.au 

The policy and guidelines contain information on vehicle acquisition, operational fleet management, vehicle use, the GVS, and the SOVS.

Vehicle leasing

State Fleet provides leases for passenger and light commercial vehicles for State Government agencies.

All vehicle leases are financed through funds managed by State Fleet.

The State Government also requires agencies to maximise leases for the greatest financial benefit. State Fleet has lease terms to suit most agency usage patterns. Leases can be adjusted under certain circumstances where usage has changed see ‘Rehiring a vehicle’.

The State Fleet General Agreement replaces individual ‘per vehicle’ leases and can be given to auditors if they request the lease agreement.

State fleet finance

State Fleet’s charter is for not-for-profit funding for vehicles, providing the lowest possible fleet leasing rates to agencies.

Leasing vehicles allows organisations to release working capital elsewhere in the organisation. Paying a fixed monthly rental allows agencies to accurately forecast their costs.

State Fleet lease options allow: 

  • easier budgeting
  • cash flow consistency
  • control over fleet operating costs

Lease terms

Before deciding on lease terms, agencies need to carefully consider the operational use of vehicles. This will help choose the right lease term and prevent extra costs in the future.

The fleet manager can help decide the best terms. Agencies must choose the maximum lease term for vehicles based on usage. This is five years or 100,000km for passenger vehicles and six years or 120,000km for SUVs and commercials.

Valid terms and nominated kilometres are found in the State Fleet General Agreement.

What is an operating lease?

An operating lease is a long term rental arrangement for a vehicle with a fixed monthly payment.

The agency operates the vehicle for the agreed rental term.

Under an operating lease, the costs of maintaining and fuelling the vehicle remain the agency’s responsibility.

At the end of the lease, the returned vehicle must meet the Return Standard and State Fleet absorbs any loss on sale.

Rehiring a vehicle

The vehicle should always be on the longest practical term for the usage of the vehicle. This ensures the agency pays the cheapest rate.

State Fleet has created a flexible process so that agencies can restructure and extend leases at any stage through the life of the vehicle.

Agencies should discuss any changes with the fleet manager. The Agency Fleet Coordinator can also use the online Restructure Calculator to see the rental impact of changing the lease terms or kilometres, and submit an online change request to State Fleet.

Failure to return vehicle

Where a vehicle is not returned at the end of the lease term, the agency must make further monthly lease payments for each month beyond the scheduled lease term.

Where a vehicle is not returned within three months of the end of the lease term, State Fleet may increase the vehicle rental amount. State Fleet has a minimum monthly rental of $500 for any vehicle kept for more than six months beyond the maximum term.

Even without increasing the rental amount, the agency will pay more for the vehicle than is necessary as the lease cannot be changed beyond the maximum term.

Much of the fleet is on maximum leases. Vehicles used beyond the maximum lease are a potential safety risk and a financial risk for State Fleet. The agency may be required to cover any loss on sale if the vehicle doesn’t earn enough at sale to cover State Fleet’s risk position.

Overuse adjustment

State Fleet will generally charge agencies an overuse adjustment for vehicles exceeding the kilometres in the lease by more than 5000km. The overuse adjustment is 5 cents for every kilometre over the 5000km.

Agencies should not deliberately use the overuse adjustment instead of having the vehicle on the correct lease term.

Early lease termination

Agencies terminating a lease early will be charged an adjustment of 80 percent of the remaining lease payments.

The early return adjustment covers the shortfall in rental payments needed to cover the capital depreciation on a vehicle.

In extenuating circumstances, State Fleet may consider exempting vehicles returned so early that a large early return adjustment is likely. The agency must pay any loss on sale, so the sale will cover State Fleet’s risk position.

Vehicle loss

The agency or its insurer are responsible for the termination value of vehicles damaged and not considered economical to repair.

The calculation is based on the value outstanding on the vehicle at that time.

For accident damage cases, the fleet manager will generally assist the agency and liaise with the Insurance Commission Government Insurance Division.

What is a finance lease?

In special circumstances, State Fleet will consider leases for heavy commercial vehicles, buses, vehicles with extensive fit-outs, or high kilometre vehicles. This allows vehicles to have longer lease periods (7 to 10 years) with higher kilometre specifications, so the total cost of ownership can be reduced and repaid over a longer period.

Agencies need to approach State Fleet with a business case to arrange a lease.

The business case would normally include:

  • the reason for seeking longer lease periods/higher kilometres
  • details of the model, fit-out, type
  • any other alternative funding arrangements investigated
  • the number of vehicles.

These leases generally require full payment of the vehicle. Exceptions must be agreed between State Fleet and the agency.

The agency will own the vehicle when the lease is terminated.

Exemption from using State Fleet leasing

Whole-of-Government policy requires all passenger and light commercial vehicles to be acquired through State Fleet leasing arrangements, rather than purchased outright.

However, the Fleet Steering Committee can exempt an agency from a leasing arrangement so they can purchase a vehicle outright. This is usually where an agency is given one-off special funding to purchase a vehicle.

Approach State Fleet with a business case to be considered for an exemption.

The business case would normally include:

  • the reason for seeking an exemption from leasing
  • details of the model, fit-out, type
  • alternative funding arrangements
  • the number of vehicles.

Government vehicle contract management

State Fleet manages the following contracts.

Key fleet manager reports

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An Agency Fleet Coordinator’s workload increases with the size of the agency’s fleet, but this can be compounded by the agency fleet profile. For example, 200 small passenger vehicles used in the metro area may be easier to manage than a mix of 100 passenger and light commercial vehicles spread throughout the state -- transportation of vehicles and servicing in remote locations can take more time.

Good quality reports by the fleet manager are a great help to Agency Fleet Coordinators in their day-to-day role. These reports may be viewed on-line or sent to the Agency Fleet Coordinator by e-mail. The number, content and frequency of reports may vary based on the size and complexity of the fleet.

Vehicles due or overdue for replacement report

Failing to act on this report can delay a replacement vehicle or cost the agency more rental charges. The vehicle may also be a road safety hazard.

The fleet manager must be informed if the report has incorrect information.

Service due/overdue report

The State Fleet General Agreement requires agencies to keep vehicles roadworthy and in good order. Vehicles must be serviced to meet manufacturers’ recommendations and warranty requirements.

Regular servicing resolves mechanical issues and keep vehicles in use.

Failure to service vehicles may void the manufacturer’s warranty. Any resulting repairs may need to be paid by the agency.

Vehicles and models may have different service schedules. Most models must be serviced at least once every 12 months or 10,000 kilometres, whichever comes first. Some drivers believe they can save money by servicing vehicles every 12 months, regardless of kilometres. Vehicles completing the kilometres within 12 months may already be overdue for a service.

Occupational Safety and Health and vehicles report

The Occupational Safety and Health Act 1984 requires that employers must as far as practicable ensure their employees and others who are at the workplace are not exposed to hazards in the working environment. The CEO has the ultimate responsibility, as an employer, to ensure the safety and health of staff and others at the workplace.

The fleet manager reports to State Fleet when a vehicle’s service is 90 days overdue. State Fleet will ask the agency for an explanation. Failure to service vehicles is a potential Occupational Safety and Health risk and could potentially lead to major injury or death. State Fleet may take further action where vehicles are not serviced, or the failure to service is not adequately explained.

All officers responsible for vehicles need to understand their obligations for routine and periodic vehicle maintenance.

Drivers of government vehicles also have a responsibility for a daily visual check of tyres, and for keeping the windscreen, windows and headlights clean to for safe, clear vision. Vehicles should be kept clean and tidy, refuelled when necessary, and oil, coolant and tyres should be checked regularly. Air conditioning run regularly and other normal vehicle operating procedures followed.

The WA Government Fleet Policy and Guidelines promotes and supports the Government’s road safety strategy Towards Zero 2008-2020 as a long term vision of a road transport system where crashes resulting in death or serious injury are virtually eliminated. Safe Driving Guidelines has been developed by the Road Safety Commission in conjunction with State Fleet. The framework provides information and guidance allowing agencies to develop an agency ‘Safe Driving Policy’ to meet specific workplace needs.

Servicing

Serviced vehicles can sometimes still appear in the overdue service report. This may happen when the service is paid through a P-Card, contractors delay submitting invoices to the fleet manager, or service is completed at no cost (due to a special offer from a manufacturer, for instance). The Agency Fleet Coordinator should advise the fleet manager of these cases so that all servicing is recorded, and only genuine outstanding service alerts are generated.

Some drivers or officers may find vehicle servicing difficult because of their location, or lack of suitable transport alternatives. The Agency Fleet Coordinator, fleet manager and driver or officer should work together to resolve these issues.

Vehicles on order or due for delivery report

Check this report to see if replacement vehicles have been ordered. This will help plan transferring accessories and arranging transportation. Any delays can be discussed with the fleet manager.

Salaries and Allowances Tribunal (SAT) office holders should be informed of any delays to their replacement vehicle.

Fleet profile

Examining the fleet profile can help agencies determine the number of staff in the fleet coordination area, where they are located and their roles. The fleet manager should be informed of changes in personnel or processes to help liaise with the right people and send reports to the right place.

Fleet profiles help avoid under or over use of vehicles, and help to select the right vehicle for the work intended. It also helps monitor trends in fleet size and any changes to vehicles types.

Fuel cost analysis

Government has a fuel contract saving agencies thousands of dollars through behind-the-scenes discounts off bowser pricing when the correct fuel cards are used.

The current fuel contract is with BP, Shell and Caltex. Where these outlets are not available, the Agency Fleet Coordinator must contact the fuel contract manager to discuss other arrangements.

In consultation with the fleet manager, the Agency Fleet Coordinator must monitor vehicles consistently using more fuel than the manufacturers’ rated fuel consumption. A fully loaded commercial vehicle or a vehicle towing a trailer will often use more fuel than the rated consumption, but otherwise high fuel usage may indicate a mechanical issue.

Excessive fuel overfills report

This report highlights purchase of more fuel than the vehicle tank capacity allows. This can happen when outlet operators charge for fuel from the wrong bowser. Drivers must check that the correct amount is billed to their fuel card.

Some light commercial vehicles have long range tanks. Fleet manager data can be adjusted to include this increased capacity so that future reports do not register as an excess fuel overfill. Filling jerry cans or boats being towed on a vehicle’s fuel card may also result in excess fuel overfill. It is better to use a unique fuel card for each application, to track fuel usage for each.

Traffic or parking infringement reports

Vehicle drivers are personally responsible for paying fines. Agency Fleet Coordinators should escalate internally cases of re-offending drivers. Protocols to manage infringements should be included in internal fleet policy.

Invalid odometer reading reports

Invalid readings can lead to frustration and errors in servicing and other reports calculated from fuel dockets. An estimated 20 percent of fuel docket odometer readings are invalid.

Drivers tell fuel attendants odometer readings when using fuel cards. Odd mistakes can be identified by fleet managers and ignored, but continuous or misleading readings prevent fleet managers from accurately measuring vehicle use, which has broad implications.

The fleet manager can identify vehicles with a history of incorrect readings, and it is good practice to monitor and manage recurring offenders. Agency Fleet Coordinators should identify issues for these vehicles and manage future occurrences.

One of the benefits of telematics in government vehicles is to validate the odometer readings used by the fleet manager’s systems.

Vehicle usage or lease term report

Agency Fleet Coordinators need to review their vehicle use at least annually to ensure that each vehicle is still required and is on the correct lease. This helps minimise lease costs and penalties. Review of new vehicles without established usage or vehicles with changed roles or areas is important.

The online Restructure Calculator can help determine rehire terms for the Agency Fleet Coordinator. A lease restructure can often find valuable monthly lease cost savings.

State Fleet can help with reviewing lease terms of the agency fleet, or any group of vehicles.

Vehicle use

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Vehicles must be used for official agency business only, or in circumstances approved by the CEO. Drivers must make sure passenger and load limits are not exceeded.

Vehicles must not be used outside Western Australia for seven days or more without State Fleet permission.

Vehicle registration

The Agency Fleet Coordinators must make sure vehicles are always licensed and have the correct plate: a Q-plate for a government vehicle, or in some cases, an ordinary plate. The fleet manager will assist, and arrange bulk registration renewal with the Department of Transport (Licensing) to meet expected vehicle life.

Vehicles must be registered with Q-plates unless exempt. Vehicles exempt from Q-plates are:

  • those approved by the CEO for the GVS or SOVS
  • police vehicles
  • those approved by the Fleet Steering Committee for operational confidentiality, sensitivity or security, where GVS or SOVS vehicles are not available.

Send applications for exemption from Q-plates to the Fleet Steering Committee by email to the State Fleet at state.fleet@finance.wa.gov.au The application must give details of the work, why the vehicle requires ordinary plates, and why existing ordinary plated vehicles in the fleet will not be sufficient.

Vehicles not part of the GVS or SOVS but with ordinary plates for operations such as security or surveillance, should not be available for private use.

Agencies must keep auditable documentation for vehicles with ordinary plates. This may include:

  • completed, CEO-approved, GVS or SOVS application form (refer Appendix A.3 of the WA Government Fleet Policy and Guidelines)
  • a letter from the Fleet Steering Committee confirming approval for security, surveillance or confidentiality use.

Fleet Steering Committee approval should be forwarded to the fleet manager by the agency.

Changing plates and bulk billing

GVS or SOVS vehicles moved to operational use or home garaging should change ordinary plates to Q-plates. Vehicles no longer exempt also need Q-plates fitted.

Registration must be maintained until disposal.

Agency fleet bulk billing renewals are traditionally on 30 June. This creates peak demand and may conflict with other end-of-financial-year activities. The Department of Transport has agreed that agencies can shift from this bulk billing renewal date if desired.

Insurance

Treasurer’s Instruction 812 mandates adequate insurance for all government vehicles. All agencies (except those with approved self-insurance arrangements) must insure through the Insurance Commission of Western Australia (Risk Cover).

Following an accident or loss, agencies must follow procedures specified by the insurer and the Agency General Agreement. The fleet manager can assess the cost effectiveness of making an insurance claim, or make other arrangements.

The fleet manager will advise State Fleet of an insurance loss within 30 days. The agency must continue to pay the lease until the 15th day of the following month, provided this notice is received by State Fleet before the 7th of the month.

No smoking, security and passengers

Smoking is not permitted in any government vehicle at any time.

Officers must park securely, including off-street parking at home. Vehicles must be secured when unoccupied, with keys removed, doors locked and security systems activated. Confidential material and expensive equipment must not be left in vehicles unattended.

Family, friends or other persons not on official government business must not be carried in government vehicles, except where GVS or SOVS use of a vehicle has been granted by the CEO.

Home garaging

Agency Fleet Coordinators are responsible for documentation with CEO approval of home-garaging, and for ensuring drivers meet policy requirements.

CEOs may approve home garaging only where an officer is on call outside business hours, and financial or business reasons make an agency garaged vehicle impractical. Home garaging may also be approved where there is evidence of regular vandalism if agency garaged.

Home garaged vehicles must not be used for personal reasons, other than officers’ commuting to and from work.

Officers driving home garaged vehicles must travel by the normal most direct route between home and work. Occasional stops and small variations are permissible. Regular variations, to attend a regular course for instance, may be approved by the CEO.

Officers must park securely, including off-street parking at home.

Car pool

All government vehicles, including SOVS vehicles, must be available for operational use during normal business hours. SAT vehicles are exempt from this.

Agencies must maintain booking and recording systems so vehicle availability and location can be seen at any time.

Combining pools of vehicles between operational areas, and even between agencies, may deliver significant cost savings. These opportunities should be considered, although financial and management challenges may need to be resolved.

The fleet manager and State Fleet can help make contact and investigate how pools of vehicles may be combined.

Agency internal fleet policy

All agencies must have internal guidelines outlining record keeping, conditions of use, vehicle specifications and vehicle use. They must follow the WA Fleet Policy and Guidelines and the State Fleet General Agreement.

The Agency Fleet Coordinator develops and reviews these policies, and keeps them current.

State Fleet can give feedback on any policy drafts from the Agency Fleet Coordinator.

Records management

All agencies must maintain auditable records, including:

  • operating costs, such as registration, insurance, fleet management fees, fuel, maintenance and servicing, tyres, lease rates, contributions and FBT calculations (including both statutory and operating cost methodologies)
  • vehicle log books (manual or electronic) recording vehicle usage (business and private kilometres), location of vehicle base, name of driver and time of trip for traffic infringement identification
  • justification for home garaging and GVS
  • participation registers for SOVS
  • justification where the lowest cost vehicle in a category is not fit-for-purpose.

Under the Road Traffic Act, the onus is on the agency holding the vehicle licence to identify who is driving at the time of a traffic offence. Records must identify the driver for infringements or insurance investigation.

Analysis and reporting

Agencies should have a system that assigns vehicle costs according to their internal structure. This may include the cost centre, business unit, program or project, and the manager accountable.

Analysis and reporting should be available at both an operational or business unit level, and at a higher strategic level. This will help managers responsible for vehicle costs make informed decisions.

Agency Fleet Coordinators should be familiar with these processes and systems.

Internal cost assignment Agency

Fleet Coordinators must ensure monthly invoices from State Fleet and the fleet manager are correct. Agency invoices from the fleet manager may have thousands of transactions and checking individual transactions may not be practical. Spot checks for duplicate or unusual transactions -- fuel transactions exceeding $150, for example – may be more effective. Expense item totals may also isolate unusual amounts, both for monthly and longer term trends.

State Fleet invoices cover vehicles currently on lease, and Agency Fleet Coordinators may need to reconcile this number with their active fleet, including vehicles coming in and out of service.

  1. Vehicles may be in service on delivery; however the lease may not officially begin until after the dealer’s invoice is paid, which could be a month or more later.
  2. Vehicles will be out of service while they are transported to a disposal centre to be inspected, refurbished to a saleable standard and certified as ready for sale. The lease may not officially end until this is completed.

Generally, this process works in favour of the agency.

Returning vehicles

Vehicles delayed during return may miss the cut-off point for the month’s new leases and incur another month of rental. Vehicles returned quickly and with minimal refurbishment should complete their lease payments on time.

Leases will be adjusted automatically to a minimum of $500 where vehicles have not been returned within 6-months of the scheduled lease expiry where the lease cost is below that amount.

Servicing

A vehicle service is shown as completed when the fleet manager pays the invoice. If the service is free, the fleet manager will not know the service is complete and will continue to report the vehicle as an outstanding service.

Expenditure limits

The fleet manager usually has an agreed expenditure limit from the Agency Fleet Coordinator, and will need authority from the agency for any work over this limit. This may not apply to relinquished vehicles as the State Fleet Disposal Manager scrutinises all repairs over $1000. The Agency Fleet Coordinator is responsible for monitoring vehicle costs, particularly repairs and maintenance, and fuel.

Monitoring and report to government

Fleet Steering Committee may report to the Expenditure Review Committee on fleet performance, including benchmarking agencies. State Fleet uses the annual Business Usage Survey to obtain information on business usage and FBT from agencies for this report. The report can include savings through CUAs and the purchase of vehicles not on the Best Buys List.

Fleet reduction program

In the 2017/18 financial year, the State Government completed a reduction program for vehicles leased from State Fleet. The program capped the fleet based on vehicle numbers at March 2014.

As part of the 2019-20 budget process Government approved vehicle size and usage level fleet related savings initiates.

The measures were to:

  • immediately reset agency fleet caps to reflect each agency’s actual fleet size as at 1 January 2019 (for all agencies below their cap)
  • remove Government Vehicle Scheme (GVS) vehicles from agencies’ fleets based in the metropolitan area where usage is less than 5,000 operational kilometres per year (from the 2018 State Fleet Business Use Survey) – with corresponding agency fleet cap adjustments to be made from 1 July 2019
  • coordinate with immediate effect the installation of technology (in-vehicle monitoring systems) to collect information to enable evidence-based decisions to optimise the State fleet through:
  • telematics (in-vehicle monitoring systems) across the State vehicle fleet (to be funded by agencies)
  • PoolCar (online booking system) across government agencies to foster better usage practices and sharing vehicle resources
  • report back to the Expenditure Review Committee as part of 2020-21 Budget on key findings and identified savings as a result of the installation of telematics and PoolCar.

Cap increase

The cap remains in place and is enforced by the fleet manager. A State Fleet report is issued each month showing the actual number of vehicles against an agency’s cap. An agency with a fleet size at or below its cap can continue the vehicle replacement program. The agency can purchase additional vehicles only if it is below the cap. The agency can purchase vehicles above the cap only with State Fleet approval. The fleet manager must suspend requisitions until authorised.

Agencies must apply to the Treasurer through their Minister for a cap increase. State Fleet cannot fund vehicles above an agency’s cap unless approved by the Treasurer.

The agency may have an independent fleet optimisation audit or telematics data before Government considers any change in cap.

It is the Agency Fleet Coordinator’s responsibility to know and understand an agency’s cap. The Agency Fleet Coordinator must efficiently deliver and dispose of vehicles within the agency’s cap number. This includes monitoring the disposal of the old vehicle once the new vehicle has been delivered.

Delays in returning vehicles may miss the cut-off point for each month’s new leases which can affect an agency’s active fleet under the fleet cap. Vehicles returned quickly and with minimal refurbishment should complete their lease payments on time, and not affect the agency’s fleet cap.

Low business use vehicles should be targeted for reduction. GVS vehicles should not be replaced unless there is an operational reason for the vehicle. To maximise the ratio of business to private use and reduce related FBT, SOVS vehicles should be available for business use during the day.

Policy requires logbooks (electronic or paper) for GVS/SOVS vehicles to assist with monitoring business to private use ratios.

Vehicles approaching replacement

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The fleet manager will tell you via reports when vehicles are nearing the end of their lease -- generally, six months before the lease expires. This gives time to process a requisition and for dealers to deliver a replacement vehicle.

If you don’t act on the fleet manager’s advice, your new vehicle may be delayed or the agency may be charged more for rentals. Also, it may affect your agency’s cap and their vehicle program may be suspended.

Before you order a new vehicle, you should consider these options.

Extend the current lease

If the current vehicle has not reached the maximum lease term, the lease can be altered so the lease term and kilometres match the vehicle’s usage. This should be assessed every six months. A restructure is not possible when the vehicle reaches the maximum lease term.

Much of the depreciation and the cost of any fit-out will have been covered by the end of the initial lease period, generally making any second lease much cheaper.

An extended lease should be based on the vehicle’s current usage. For example, a 100,000km lease is an unnecessary expense for a passenger vehicle likely to run 80,000km in five years. This can result in increased costs from lease adjustments or higher monthly lease rates.

Vehicles reaching maximum kilometres and returned earlier than their full lease term will have an early return adjustment equivalent to 80 percent of the remaining lease payments. State Fleet will calculate the adjustment at the termination of the lease and invoice the agency. The early return adjustment covers the shortfall in rental payments needed to cover the capital depreciation on the vehicle.

An over-use adjustment of 5c for every kilometre will be charged for vehicles travelling more than 5000km past their nominated lease kilometres. This will be levied on the agency when the vehicle is sent to disposal. Vehicles with higher kilometres are likely to fetch less at auction.

Use the Lease Restructure Calculator to submit a new lease.

Relinquish without replacement

Aside from Salaries and Allowances Tribunal (SAT) members and Senior Officers Vehicle Scheme (SOVS) vehicles, all other vehicles must have a clear operational requirement. Vehicles should not be leased for commuting or for the Government Vehicle Scheme (GVS).

SOVS vehicles used under the SOVS are also considered operational vehicles. These vehicles must be made available for business use during the day, and business usage recorded.

How many vehicles an agency has depends on how much they will be used, and each vehicle should be used effectively. If vehicles are not fully used, the agency may need fewer vehicles.

Agencies reducing the size of their fleet may opt not to replace under-used vehicles. Short-term vehicle hire, public transport or taxis may be used instead.

Vehicles relinquished early without replacement may be eligible for exemption from the Early Return Adjustment. Send an enquiry to State Fleet.

Vehicles to be rehired

Under the Buyers Guide and Document tab of the eDA there is a spreadsheet called Vehicles to be Rehired. This contains vehicles sent to disposal early, which may be useful to agencies needing short term hires. These can be arranged through the fleet manager.

Replacement of a vehicle

Agencies must choose the lowest whole of life (WOL) cost, fit-for-purpose vehicle under operational, financial, environmental, and safety considerations. Choosing the most cost-effective (based on WOL cost) vehicle with minimal accessory levels, and replacing costly operational vehicles like four-wheel-drives with lower cost alternatives, will reduce fleet costs.

Operational vehicles must be fit-for-purpose, but a like-for-like replacement is not necessarily appropriate. New vehicle selections should be carefully assessed in case vehicle capabilities and operational needs have changed. Vehicle selection should be guided by policies (both Government and agency) for overall best value for money.

The Best Buys List contains the lowest WOL cost vehicle within each vehicle category. CEOs must choose from the Best Buys List for all vehicles unless there are operational reasons for a higher cost vehicle – which CEOs must justify and record. State Fleet reports purchases of vehicles not on the Best Buys List to government.

Fleet composition

Agencies should match their fleet size and mix to their operational needs. Agencies need to find:

  • ways of reducing their fleet size and justifying new or replacement vehicles
  • an appropriate mix of vehicles including models, colour, size and vehicle specification, considering operating costs and WOL costs.

Some agencies together with State Fleet have developed a justification form for replacement vehicles. This helps determine that the vehicle is still needed and low cost alternatives have been considered.

Electric vehicles

Western Australian Electric Vehicle Strategy

In December 2020 the Government announced the Western Australian Electric Vehicle Strategy. The Strategy is a key element of the Western Australian Climate Policy that commits to delivering a cleaner, more sustainable environment through the increased uptake of low and zero emission vehicles.

The strategy incorporates State Government fleet uptake targets – escalating over five years to an electric vehicle (EV) acquisition target of at least 25 per cent of eligible vehicles in the fleet. Eligibility for replacement with an EV is based on vehicles:

  • for which an EV replacement is available
  • not home garaged (due to Fringe Benefits Tax and overnight charging implications).

For the purpose of the strategy, the term ‘EV’ applies to battery-electric vehicles (BEVs) and plug-in Hybrid Electric Vehicles (PHEVs) only.

Electric vehicle chargers

The government strategy includes funding for EV chargers at Government locations – up to $5,000 per vehicle. The funding will be distributed to agencies on a ‘first come, first served’ basis, and becomes available 1 July 2021.

The general steps to get your EV charger/s paid for are:

  1. identify a petrol or diesel vehicle to replace (consider EV suitability and location)
  2. e-mail us for contact details for EV charging companies
  3. get a quote or quotes (following the WA Procurement Rules and your internal procurement procedures)
  4. get the work done and paid for via your usual processes
  5. (order your EV!)
  6. send us a copy of the invoice for the charger, along with an invoice made out to the Department of Finance so we can pay you.

Electric vehicle myth-busting

The whole agency fleet will not be replaced with EVs as currently there is no viable EV alternative for a large SUV, van or utility. The targets and quotas over the next five years are based on eligible vehicles only -- where there is a practical EV alternative (small / medium passenger and SUV).

The targets are set at a global level, ramping up over five years. Some agencies are better placed to use EVs based on the type of vehicles they currently use. State Fleet will work with each agency to achieve the collective goal.

EVs cannot currently be used for private use (GVS / SOVS) and home garaging. Once fringe benefits tax (FBT) is brought into the equation the cost to an agency is twice as much yearly as petrol equivalents. More competition in the EV market will drive down prices and resolve this issue in coming years. FBT doesn’t apply to vehicles with no private use or commuting, so in most cases EVs used solely for operational purposes do not cost much more per year than a petrol equivalent.

If you want an EV in a regional location, check if your local dealership is able to service your preferred EV model. Most EVs currently can only be serviced at certain dealerships in the metropolitan area.

A guide to electric vehicles

The Government has also launched the Electric Vehicle Action Plan, with a set of actions to prepare Western Australia for the rapid uptake of EVs.

In addition, a guide has been published with EV information and resources for agency fleet managers / coordinators.

The guide covers what’s happening with EVs around the world, the types of EVs available here and now, information relating to chargers (types, locations, charging rates, installation considerations), environmental benefits and some indicative purchase and running costs (though please refer to the e-Decision Aid for State Fleet rates).

An EV Charger Quote Template has been developed to lay out all the potential cost components. There are some notes to consider, and the process and requirements for reimbursement of your costs.

The charger quoted must be ‘smart-ready’ -- capable of being network-connected and remotely managed. ‘Smart-ready’ chargers do not cost any more than a charger with no option of network connectivity.

Smart chargers manage who can use a charger (if required), report on when the chargers are being used, how much power is being drawn (to allocate costs rather than having a separate power meter), and can manage when they’re switched on and off (potentially to distribute power between chargers, to take advantage of any future energy tariffs and also to avoid exacerbating the grid load at peak times).

Vehicle use

Maximising business use of all vehicles can be financially beneficial, reducing vehicle numbers and minimising Fringe Benefits Tax (FBT) liability. FBT and additional kilometres apply to home garaging of Q‑plated government vehicles, when there is either private or commuting use. Avoid these costs where possible, unless specific vehicles have operational roles such as being on-call.

Converting home-garaged Q-plated vehicles to ordinary plated vehicles -- where employees contribute in return for private use -- can significantly offset (or even eliminate) the FBT liability. The GVS and SOVS can also achieve this.

Vehicles used privately (other than SAT vehicles) have a breakeven point of around 60 to 70 percent business use. An agency’s fleet size and usage levels must be regularly reviewed. State Fleet surveys agencies once a year to analyse business use. The amount of business use determines the contribution rate charged and provides Government with fleet savings initiatives.

Vehicle safety policy

Changes to OSH legislation means a vehicle is considered a workplace, and the agency may be liable for accidents. Agencies with vehicles travelling long distances, in the country or off-road, need to include safety as part of fleet policy. Driver issues, like driving a government vehicle on a suspended licence, need to be mitigated. Agencies need to provide courses for officers required to do off-road driving, and for re-offending drivers, as these are high risk areas.

Agencies have a duty of care to provide a safe workplace and therefore driving fleet vehicles needs to be as safe as is reasonable and practical.

The safety of the vehicle, their safe operation, and accessories that promote occupant safety must be considered when selecting vehicles. Agencies may decide certain additional safety features need to be specified, (whether they are fitted as standard or as added extras) to improve occupant safety.

The eDA contains only vehicles that are 5-star ANCAP/NCAP rated. It is mandatory for agencies to purchase 5-star passenger and light commercial vehicles unless approved by State Fleet.

Exemption from purchasing 5-star vehicles due to lack of availability or not ‘fit for purpose’ requires a substantial business case to State Fleet. This must be endorsed by the agency CEO, outlining the operational requirement of the vehicle in detail and justifying why that operational requirement cannot be met by 5-star vehicles. State Fleet will ensure the business case considers all possibilities before an exemption is officially granted. This reduces requests for further information and can speed up the process.

Fuel efficiency policy

Emission targets specifying grams of CO2 per kilometre (g/km) promote ongoing improvements in fuel efficiency. The threshold for passenger vehicles is 185g/km, and 195g/km for SUVs.

The National Greenhouse and Energy Reporting System’s measurement technique of CO2 emissions from the Australian Greenhouse Office is used to calculate the g/km emissions. The g/km measure is used because it applies regardless of the different emission characteristics of petrol, LPG and diesel. The policy is focussed on fuel efficiency and is indifferent to the technology used to achieve it.

Vehicles beyond the specified targets may be selected only where a clear operational requirement is approved by the CEO.

Light commercial vehicles have no specific benchmark cap due to the many different categories of vehicles. However, organisations should aim for the most fuel-efficient vehicle that is ‘fit for purpose’, and meets safety and WOL cost objectives.

Fuel cards

The fleet manager is responsible for supplying and managing fuel cards for agency vehicles.

Multiple fuel cards may be issued with every vehicle, and each may be set up with different options.

Drivers must use the fuel recommended by the manufacturer. Using incorrect fuel may be costly if its causes engine failure, as this is not covered by the manufacturer’s warranty. Products which prevent filling diesel vehicles with petrol may be considered.

Fuel cards may be limited to less expensive octane fuels, but cannot be limited to high octane fuels only. Fleet Coordinators should confirm vehicle fuel types with the fleet manager and preferably ensure the correct fuel type is labelled by the filler cap, and drivers are advised.

Agencies can make considerable savings by selecting fuel cards from nearby contracted fuel providers. In areas without a contracted provider, agencies need an exemption from the Fuel CUA contract manager to make other arrangements.

Vehicle equipment

In-vehicle monitoring systems (Telematics)

Government requires all State Fleet vehicles, except SAT, to be fitted with telematics that will collect information to optimise use of the state’s fleet. Telematics devices are available through Fleet Services CUA contractors to purchase.

Depending on agency requirements, the cheapest devices will provide information only to State Fleet. However, agencies should also consider using telematics as electronic logbooks to:

  • minimise FBT payable
  • get refunds on petrol tax when vehicles do not travel on public roads
  • analyse optimal use of vehicles
  • study driver behaviour especially for driver fatigue or remote driving
  • trigger duress alarms for accidents.

Covert telematics is illegal, and agencies must inform staff that government vehicles have tracking devices. Telematics vehicles must have a windscreen sticker indicating a device is fitted, and vehicle booking systems must have an alert so that drivers acknowledge the telematics requirement.

The raw data collected by telematics devices is transmitted to the telematics service provider selected by the agency under the Motor Vehicle Fleet Services CUA. The data gathered is protected by the data management, sovereignty, privacy and confidentiality clauses of the CUA.

The trip data given to State Fleet will summarise trip and vehicle use. It will not include driver identification, home addresses or details of private trips.

Using Government Vehicle Scheme (GVS) and Senior Officers Vehicle Scheme (SOVS) vehicles is optional. Drivers concerned about privacy and confidentiality need not use these vehicles. CEOs also have discretion to allow these schemes or not.

Accessories

Accessories to make a vehicle fit-for-purpose (including safety) or to protect it from damage, must be approved by the agency CEO. Vehicle accessories must meet genuine operational requirements.

Currently installed accessories may be removed if they are unnecessary.

Aftermarket accessories suppliers for off-road vehicles are contracted through the Motor Vehicle Fleet Services CUA. The contractors recommend accessories to agencies that suit the operational requirements of the vehicle. The same accessories can be purchased for each similar vehicle in the same area. This helps AFCs decide which accessories to purchase at the right cost. It also helps the fleet manager order vehicles.

High cost accessories can be transferred to another vehicle before disposal, where cost effective.

The cost of accessories (including fit-outs) for passenger vehicles and SUVs will be billed to the agency for payment by the fleet manager when the vehicle is delivered. The cost will not be part of the vehicle lease cost. State Fleet will consider standardised accessories in a SUV lease when:

  • the cost is greater than $10,000
  • the agency justifies each accessory
  • the aftermarket contractors recommend off-road accessories
  • a standardised fit-out will be determined and approved by State Fleet.

Standardised accessories will be fitted to multiple vehicles, so vehicles don’t need individual approval. State Fleet approval will allow the fleet manager to amalgamate the cost of accessories and vehicle together when processing the dealership invoice.

Accessory costs for SAT vehicles and light commercials are paid for by State Fleet and are part of the lease cost.

Examples of safety items are

  • reversing cameras
  • optional daytime running lights
  • safe vehicle colour depending on working environment. Colours higher on the visibility index, such as white, are recommended to reduce crash risk
  • active head restraints
  • cargo barriers in vehicles such as wagons, when manufactured and fitted to comply with Australian standards
  • cruise control
  • first aid kit
  • fire extinguishers
  • communication equipment
  • winch (airbag compatible).

Examples of function items are:

  • bull bar (airbag compatible)
  • tow bar
  • window tinting
  • additional spare tyres
  • long-range fuel tanks
  • electronic logbooks.

Accessories that are essentially comfort items such as sunroof and leather seats cannot be approved.

AFCs must make sure accessories are justified operationally.

Impact of additional equipment on vehicle

Additional or optional equipment fitted to government fleet vehicles must not affect the manufacturers’ designed operation, change the intended purpose of the vehicle, or increase the potential for injury to pedestrians or vehicle occupants. Fitting equipment must minimise vehicle damage and comply with vehicle Australian Design Rules (ADRs).

Overloaded vehicles

Depending on its type, a vehicle carrying five (or seven) passengers and bags may be over its Gross Vehicle Mass (GVM) and not legal to drive. Similarly, a vehicle loaded with gear and additional rooftop goods, and towing a trailer, could be over its GVM and Gross Combined Mass (GCM) which is also illegal to drive.

Driving an unsafe vehicle will:

  • increase the risk of accidents from poor handling
  • stress the original suspension and mounts leading to premature failure
  • stress the original tyres leading to premature failure.

State transport officers have mobile weigh bridges to check weights and issue infringement notices, leading to fines and maybe demerits. They can also demand that you offload goods or stop the journey, and the vehicle will need to be recovered.

Extra information is available on vehicle load terms, determining the payload, being over GVM and the impact on towing.

GVM upgrades

There are other options, like a GVM upgrade, so the vehicle can handle the extra weight safely and legally. The first and most important step is to work out what weights will be carried. Usually upgrading suspension with springs rated to suit heavier loads will suffice. Vehicles towing large trailers regularly may have reinforcement plates and possibly an extra cross-member welded to the chassis, but this is not recommended by State Fleet. This is a serious modification and must be signed off by an accredited engineer. It will probably be worthwhile upgrading to a bigger vehicle to handle the load safely.

Responsibility for safety

Under safety and health legislation, the agency is responsible for the safety of vehicles and their occupants – not just the driver. Ensure that agency policies cover remote driving and the loading of vehicles.

Chain of Responsibility 

Chain of responsibility legislation in WA  applies to all vehicles regardless of size so that all parties in the transport chain can be held responsible for their actions. This means anyone who has control in the transport chain can be held legally accountable if, by their actions, inactions or decisions, they cause or contribute to a breach of the road laws. This includes ensuring that vehicles do not exceed mass limits, loads do not exceed dimension limits and loads are appropriately restrained. 

As a result, agencies must be clear, transparent and complete in providing information for the intended use of a vehicle, to enable the Fleet Manager to source an appropriate vehicle and where necessary, fit-out supplier.  Where a supplier has been located by the agency, the Fleet Manager may refuse to use that supplier where they do not hold the appropriate licences or certification, or where their product cannot be certified by the appropriately qualified inspection personnel. 

If an agency requests a fit-out that compromises the stability, integrity or safety of a vehicle or its load, the Fleet Manager can refuse to place the order or refer it to State Fleet. 

The Fleet Manager will source vehicles, accessories and fit-outs from suppliers that are suitably licenced and certified, and where certification is available for the fit-out or accessories.
 

Vehicle compliance

Under the vehicle acquisition CUA, State Fleet must purchase new vehicles within three months for passenger vehicles and six months for commercial vehicles.

A road vehicle must comply with the Federal Motor Vehicle Standards Act 1989 before it can be registered for the first time in Australia. The Motor Vehicle Standards Act requires vehicles to meet the national standards for safety and emission requirements. The national standards are currently the Australian Design Rules (ADRs). A vehicle can be fitted with a compliance plate when it has been certified as meeting the ADRs. A compliance plate is mandatory under the Motor Vehicles Standards Act, telling the registering authority that the vehicle is eligible for registration.

In some cases, an Agency may (in conjunction with the fleet manager) acquire a new vehicle later than three or six months. The fleet manager should seek a further discount for these ‘older’ new vehicles, but State Fleet also reserves the right to adjust the rental of such vehicles, as the residual value may be affected by their extended age.

Funding arrangements

All general government sector agencies are required to lease vehicles through State Fleet, except where State Fleet approves an alternative arrangement.

In a very limited number of cases, State Fleet can exempt an agency from leasing and purchase a vehicle outright using the vehicle acquisition CUA – mostly where an organisation receives once-only special funding to purchase a vehicle.

Agencies wanting an exemption should present a business case to State Fleet, including:

  • the reason for an exemption from leasing
  • details of the model, fit-out, type
  • the alternative funding arrangements
  • the number of vehicles.

Lease commencement

The lease begins following vehicle delivery, when State Fleet pays the dealer on the 15th of a month. This can be 30 days after the vehicle is delivered. The agency can use the vehicle without a lease invoice. This can be offset at the end of the lease by the time between an agency relinquishing a vehicle for disposal, and the disposal contractor receiving the vehicle in saleable condition.

Vehicle requisitions

These important factors are to be completed and included on the fleet manager Vehicle Requisition form.

  • The registration number of the vehicle being replaced. New vehicles not replacing existing vehicles are “additional” and will add to the agency’s fleet numbers. This is critical if the agency is on its cap – the fleet manager will not process the requisition unless approved by State Fleet. Leased vehicles can be replaced only once.
  • Q-plate number. All government vehicles must have Q-plates unless exempt. Police, GVS, SOVS and SAT vehicles are automatically exempt. Agencies can also obtain private plates with an exemption from the Fleet Steering Committee, and a copy should be attached to the requisition.
  • The driver’s name, for GVS, SOVS or SAT vehicles.
  • An off contract number (SFOC) for new vehicles not 5-star ANCAP/NCAP rated or not on contract. The SFOC must be obtained from State Fleet before the fleet manager will process the requisition. If an SFOC has not been obtained, a business case will need to be sent to State Fleet before sending the requisition.
  • The maximum lease term, based on the proposed usage of the vehicle. Agency-owned vehicles need an exemption from State Fleet attached to the requisition.

Lease restructure calculator

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The lease restructure calculator lets you calculate monthly vehicle leasing costs, if lease term or kilometres change, and submit those changes to State Fleet. If the monthly lease cost increases, you can save thousands of dollars a year in some cases because penalties are reduced at the end of the lease. Agencies with large fleets should review vehicle use every six months, to see if vehicles have the most appropriate leases.

Review individual vehicles by entering the registration number of the vehicle in the Lease Calculation tab, or alternatively select the Bulk Rehire tab to review all agency fleet vehicles.

The system gives details of the current vehicle lease, plus an automatic calculation of the best possible lease restructure based on current usage (kilometres per year).

For individual vehicles, accept or modify the recommended lease to suit agency requirements. Once a new lease is calculated, save it for later or submit to State Fleet. Once you submit, only you can unsubmit the change.

The bulk rehire table lists all active leased vehicles, with their current lease and their optimised lease. The ‘Non-Optimal Leases’ toggle button filters the list for vehicles where a change in lease is recommended. Either the full list of vehicles or the ‘Non-Optimal Lease’ vehicles can be exported. You can save your work to come back to it later.

There are three lease options.

  • Do nothing (maintain the current lease term).
  • Tick the ‘Use as new Lease’ box, if you want to change the lease to the optimal term.
  • Use the registration number link to view and modify the lease parameters for individual vehicles.

All vehicles you selected in the bulk rehire screen and submitted, will be extracted by State Fleet to action the proposed lease. The bulk rehire screen will then be locked, but you can still make rehires for vehicles not selected by using the individual screen. You can make further changes to the vehicle’s lease before it is processed by State Fleet by unsubmitting it, but only you can unsubmit any vehicle lease you submitted. Unsubmitting the bulk rehire will unsubmit all vehicles that were selected.

Generally, State Fleet will extract proposed leases on the 13th of each month. Proposed changes in the calculator can be deleted before then, but the account is frozen when the lease is extracted. Only State Fleet can alter the lease while the account is frozen. Submissions with a start date beyond the current month will be extracted when that month becomes current. Vehicle rehires where the changes are less than three months, with no change to kilometres, will not be processed as the change in lease costs is minimal.

Under-used vehicles are currently being targeted as part of the Government’s fleet cost reduction strategy. Agencies should consider strategies to increase vehicle use or relinquish underused vehicles. State Fleet and the fleet manager can assist.

For access to the calculator use the New Buyer Registration button.

List of contracted vehicles

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A complete list of vehicles on the acquisition contract and within the policy is available in the online electronic Decision Aid (eDA). Some AFC’s control which staff have access to the eDA. Limiting access to the eDA can be discussed with State Fleet.

To make it easier to select the relevant vehicles, the eDA is divided up into a number of vehicle lists (below). Take care to select vehicles from the correct list to prevent unnecessary rework later.

  • Best Buy List
  • The Government Vehicle List (GVL)
  • The Senior Officer Vehicle Scheme (SOVS)
  • Salaries and Allowances Tribunal (SAT).

These lists are generally updated weekly depending on whether State Fleet receives new model details from either the manufacturer or State Fleet’s vehicle data provider.

The vehicles can be shortlisted by various criteria, and also exported to an Excel spreadsheet.

Vehicles in these lists are sorted by Whole of Life (WOL) cost. The lease cost included in the WOL cost is based on a 60 month 100,000km lease. For a more accurate WOL cost based on a specific lease team and other costs, the WOL calculator in the eDA should be used.

Vehicles with pricing but no vehicle data are listed in the Unclassified Vehicles with Current Prices spreadsheet, under the Buyers Guide and Documents tab.

Access the eDA by the New Buyer Registration button.

Best Buy List

Government requires agencies to choose the lowest whole of life (WOL) cost, fit-for-purpose vehicle.

Choosing the vehicle category which best matches operational need will reduce fleet costs, combined with short term hire vehicles or other transport options where financially and operationally advisable.

Like-for-like replacements are not necessarily appropriate. Vehicle capabilities and operational needs can change, so choose new vehicles carefully.

The Best Buys List in the eDA assists vehicle selection by showing vehicle categories and the lowest WOL cost automatic transmission vehicle options. Although not listed, the manual equivalent of a vehicle on this list can also be regarded as a best buy. Agencies must choose from this list unless a valid operational reason requires a higher cost vehicle.

Acknowledging that the acquisition and approval process can take time, vehicles recently removed from the the Best Buy list may still be ordered during a grace period of 60 days. The only exception may come if the vehicle manufacturer has advised State Fleet of supply issues. When a model is no longer available it will be removed from the Best Buy List.

Government Vehicle List

Vehicles can be chosen from this list if the CEO has approved a business case showing why the vehicles in the Best Buy List are not operationally fit-for purpose. This may be reviewed by State Fleet to ensure the CEO has all the relevant information as the decisions may be questioned by government.

An exemption from the Best Buy  may apply to individual vehicles or a group of vehicles. It need be reviewed only when operational circumstances change, or a more suitable vehicle model becomes available.

The list is sorted in lowest whole of life cost order.

GVS and SOVS participants cannot influence vehicle selection decisions. Vehicles can be purchased from the list only if there is a justifiable operational requirement and not to facilitate commuting.

Vehicles on contract that are not 5-star ANCAP/NCAP rated or are not tested, are not included in this list.

SOVS List

SOVS participants must choose a vehicle from this list unless there is an operational vehicle in the fleet available for the SOVS. They cannot choose vehicles from either the Best Buy List or the GVL, or influence vehicle selection decisions.

The SOVS List contains the lowest WOL cost vehicles in the following categories:

  • Passenger – light, small, and medium
  • SUV – small, and medium.

Other than the vehicle categories, the vehicles in this list may be different from those in the Best Buys List due to the inclusion of FBT in the WOL cost.

SAT List

SAT members can choose almost any vehicle. All vehicles on contract that meet the fleet policy and can be leased through State Fleet are listed. When vehicles are selected from this list to calculate the WOL cost for SAT members, the lease cost calculation does not include the Debt Reduction Levy. Therefore this list should not be used for other purposes.

Contact the fleet manager if the SAT member is interested in a vehicle not on contract.

Contract vehicles not on the eDA

These are vehicles which do not meet policy requirements. Most are vehicles that do not have a 5-star ANCAP/NCAP safety rating or have not been tested.

However, this also includes a group of medium-sized trucks and vans with a Gross Vehicle Mass (GVM) between 3 and 4.5 tonnes such as Mercedes Sprinter and Volkswagen Crafter. ANCAP currently do not have the facilities to crash test these vehicles and therefore they will never have a star rating.

The AFC needs to discuss the agency’s requirements with the fleet manager and prepare a business case to State Fleet requesting exemption from the safety policy to acquire the vehicle. The off-contract vehicle number (SFOC#) must be obtained from State Fleet before ordering the vehicle, as this is the fleet manager’s authorisation to purchase the vehicle. Access the Safety Policy Exemption Request form here.

Another group are manual transmission variants of automatics listed on the eDA. These do meet policy and do not need a business case to acquire. They are not list on the eDA due to the very small number purchased.

Whole of life cost

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Knowing the indicative whole of life cost of a vehicle is particularly important when selecting a vehicle to comply with the policy or when determining the requirements of an SAT officer.

There is a whole of life cost against each vehicle listed in the eDA. This whole of life cost is used to sort the vehicles so that the lowest is shown first. It is based on a 60 month 100,000km lease and no accessories, so that it provides a level playing field for all vehicles, including commercials.

If a more accurate whole of life cost is required, then the Whole of Life Cost Calculator should be used in the eDA.

Whole of life cost calculator

By selecting up to five vehicles in product selection, the AFC can go to the whole of life calculator. Adding additional information, including the lease terms and cost of accessories, the calculator will work out the lease cost and whole of life costs for the selected vehicles. This can be exported to Excel and kept.

Accessory costs for operational passenger vehicles and SUVs are paid by the agency directly and therefore not included in the lease cost. If accessory costs are to be included in the whole of life cost but not the lease cost, then ensure that the Include Accessories tick box is not ticked.

The Selected Accessories Cost field automatically populates from accessories selected in the eDA against individual vehicles. The Additional Accessories Cost field can be populated manually.

The fleet manager will calculate the whole of life cost if the calculator indicates the Luxury Car Tax (LCT) will be added to the vehicle. Only the fleet manager can calculate the whole of life cost if the vehicle does not meet policy requirements or if it is off-contract.

It is important that a SAT vehicle is selected through the SAT list and not any other list. The calculation for the whole of life cost is different.

Vehicles schemes

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Common requirements

The Government Vehicle Scheme (GVS) and Senior Officer Vehicle Scheme (SOVS) allow private use of government vehicles.

CEO discretion

Participation in these schemes is at the discretion of the CEO. The CEO may add to the requirements in the Policy.

The policy allows ordinary (non-government) licence plates for scheme vehicles.

Operational use

These vehicles must be available in the agency’s booking system for staff work travel during normal office hours. This does not apply to vehicles required full time for an operational purpose; for example, in a one-person office, or where the GVS participant works away from the office, or from their home every day. The vehicles cannot be booked out simply because the scheme driver “may” need to use it. Scheme drivers must comply with agency vehicle booking system conditions and cannot assume a vehicle is for their exclusive use.

Accessories

Only those accessories which bring a vehicle up to a fit-for-purpose standard (including safety) or protect the vehicle from damage should be approved by CEOs.

Only accessories for operational use can be funded by the Public Sector body.

A GVS or SOVS participant may fit extra accessories for private use at their own expense, subject to the CEO’s approval. The Public Sector body may require the item to be removed before disposal, or the officer may choose to do so. In both cases, this would be at the officer’s expense.

Contribution rates

Five contribution rates apply to these vehicles based on their operating costs. These rates are reviewed each year by the Fleet Steering Committee. The current rates are published on the State Government website.

Officers using these vehicles will pay the contribution rate set for that type of vehicle. If the vehicle is replaced with a vehicle with a different contribution rate, the officer will pay the new contribution rate from the date of the replacement.

A vehicle may move into a higher contribution rate following changes to the policy, however officers using GVS and SOVS vehicles will continue to pay the existing, lower rate for six months after the change. If the officer relinquishes the vehicle, or if a new officer accesses the vehicle, the new contribution rate will apply.

Where an existing vehicle’s contribution rate decreases, the new rate will apply immediately.

Maintenance – routine and periodic

Participants must keep their vehicle clean and tidy, refuel it when necessary, regularly run the air-conditioning and check oil, coolant, tyres etc.

Officers will ensure that the vehicle is regularly serviced and maintained according to the manufacturer’s recommended specifications (which can be arranged through the fleet manager).

Termination

The CEO has the right to terminate an officer’s participation in the scheme. Participation in the GVS and SOVS is optional and a participating officer may also elect to terminate the arrangement.

Suspension

Participation in a scheme may be suspended at the discretion of the CEO, if the officer or nominee:

  • is convicted of a serious driving offence
  • has incurred excessive insurance claims
  • has not suitably maintained the vehicle
  • has breached any of the agreed conditions.

Government Vehicle Scheme

Agency fleet vehicles should be acquired or replaced for operational reasons only. They should not be replaced or acquired solely to gain GVS vehicles. CEOs are responsible for managing their fleet size and cost.

Vehicle numbers should reflect usage – each vehicle should have a reasonable operational usage rate. Vehicles with low operational usage may not be required or could be deployed more effectively; although some vehicles with low kilometres may be justified by operational reasons – such as a fire truck stationed at a prison, or a community nurse’s vehicle.

All GVS vehicles should have an operational requirement. They should not be regarded as private vehicles, or a vehicle which is not operational that the officer is entitled to. GVS vehicles with low business kilometres should be reviewed to see if they are justified operationally.

Eligibility

CEOs may approve PSA Level 8 officers (or equivalent - refer Appendix A.1) accessing the GVS only where there is demonstrable value for money to taxpayers, for example

  • where an officer is on call outside of business hours and it does not make financial or business sense to use an agency-garaged vehicle
  • where a vehicle is at real risk of regular vandalism if agency-garaged.

The Level 8, first year, classification point in the Public Service Award (PSA) 1992, is the entry point for eligibility to the GVS.

This classification point is to be used for determining comparable GVS entry points in other awards where the salary level is equivalent to the PSA Level 8.1.

Where there is uncertainty as to the appropriate classification point for eligibility, Public Sector bodies should contact the Department of Mines, Industry Regulation and Safety – Labour Relations – Public Sector Directorate.

Vehicle use

Officers participating in the GVS are permitted private use of the vehicle.

Vehicle selection

CEOs must approve the lowest whole-of-life cost fit-for-purpose vehicle as outlined in the policy. GVS officers cannot influence vehicle selection decisions.

Part time and leave

An officer is not eligible to participate in the GVS if they are employed part time.

An officer is not eligible to use a vehicle while on leave. However, a CEO may approve an officer to use the vehicle on leave where the officer is the sole user of the vehicle (such as in remote areas). The officer must cover all fuel costs and may not drive interstate, travel great distances intrastate or use the vehicle on rough terrain.

CEOs are required to record all cases where approval is granted.

Contributions

GVS participants must authorise fortnightly salary deductions for their vehicle contribution rate. These deductions are post-tax, and contribution rates are reviewed by the Fleet Steering Committee each year.

GVS participants are entitled to reimbursement of any contribution when they do not have access to the vehicle outside of normal business hours such as when they are on leave.

Approved drivers

GVS participants must ensure that no other person, other than the officer’s nominee, drives the vehicle for private purposes. The nominee must not be a learner or probationary driver. The CEO must approve the nominee.

Compliance

GVS participants must agree to the terms of the scheme, sign the GVS application form and comply with the Public Sector body’s internal guidelines.

Senior Officer Vehicle Scheme

Eligibility

CEOs may approve only Level 9 to Class 4 (or equivalent) officers to access the SOVS.

Where there is uncertainty as to the appropriate classification point for eligibility, Public Sector bodies should contact the Department of Mines, Industry Regulation and Safety – Labour Relations – Public Sector Directorate.

Vehicle use

Officers participating in the GVS are permitted private use of the vehicle. The vehicle must be available for business use during the day.

Vehicle selection

SOVS participants are restricted to the lowest cost vehicle in the following categories:

  • passenger – light, small or medium
  • SUV – small or medium.

Where an officer has an operational requirement, the CEO may authorise a SOVS officer to be allocated an operational vehicle in accordance with the policy.

Part-time and leave

An officer working 0.5 FTE or greater may be eligible to participate in the SOVS. Officers must pay an adjusted contribution rate set out in Appendix A section 2.2 of the policy.

At the discretion of the CEO, SOVS participants may have the option of using their SOVS vehicle during periods of paid leave for up to three months. SOVS participants must consider the operational impacts of a vehicle not being available, exercise due restraint in the use of vehicles and not travel great distances or use the vehicle on rough terrain.

Contributions

SOVS participants must authorise fortnightly salary deductions for their vehicle contribution rate. These deductions are post-tax, and contribution rates are reviewed by the Fleet Steering Committee each year.

SOVS participants are entitled to reimbursement of any contribution when the officer does not have access to the vehicle outside of normal business hours.

Approved drivers

SOVS participants may permit other drivers, other than learner or probationary drivers, to use the vehicle privately.

Compliance

SOVS participants must agree to the terms of the scheme, sign the SOVS application form and comply with the Public Sector body’s internal guidelines.

Acquisition of SAT vehicles

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SAT determinations provide the member with an annual motor-vehicle allowance. Copies of the determinations can be found on the Tribunal’s website.

Vehicles which do not meet the Vehicle Safety Policy cannot be leased through State Fleet. SAT members may use other forms of purchase.

SAT members generally require the AFC to calculate a whole-of-life cost for the new vehicle and compare it with their allowance. The fleet manager can assist in providing this information.

The SAT member should decide on a vehicle, then any material difference in the whole-of-life cost between the two figures must be finalised.

Payroll must pay the officer the difference through their fortnightly pay where whole of life costs of the vehicle that are lower than the allowance; or deduct the difference from the officer’s fortnightly pay where the whole-of-life costs are more than their allowance.

The AFC should inform the member of the likely delivery date of any potential vehicle where the lease is scheduled to expire. They should also notify the member of any delay once the vehicle has been ordered.

Telematics

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Telematics is hardware that monitors movement and other data from vehicles. Except for operational Police vehicles and senior officers under Salaries and Allowances Tribunal determinations, telematics is mandatory in all government vehicles.

State Fleet will use telematics data to report to Government (and in some cases to agencies) on:

  • business use levels of vehicles/fleets
  • fleet policy compliance
  • opportunities for inter-agency car pooling
  • accurate fringe benefits tax assessment. Business vs. private use
  • fuel tax / excise rebates available - including off-road use
  • opportunities for electric vehicles
  • potential policy for alternative transport options
  • any other emerging opportunities to better manage State Fleet assets
  • driver safety - fatigue management, speeding, harsh braking, acceleration etc.

Telematics can replace paper logbooks by capturing logbook information – but does not provide the complete picture without other inputs. Telematics in isolation will not tell you:

  • who was driving (unless an optional ID card reader is fitted)
  • the trip purpose (meeting, site visit etc)
  • the intended destination (a GPS location can generally be converted to a nearby street address, though it is usually easier for the driver to nominate the destination)
  • the portion of each trip that was business or private

Telematics with an in-vehicle input screen may be used to substitute a logbook. These units are more expensive and should be extensively trialled for user-friendliness and reliability. Alternatively, the PoolCar/Smartrak booking system can be used with telematics to provide a complete e-log book solution. A combination of a booking system with other in-vehicle technology (such as an ID card reader) may also be suitable.

The PoolCar booking system is also mandatory. Agencies needing a car booking system must use PoolCar/Smartrak unless exempted by State Fleet. PoolCar/Smartrak is cloud-based, full of smart features and enables inter-agency car sharing. State Fleet will work with agencies to determine where PoolCar/Smartrak must be implemented. Telematics data will also help to identify situations where PoolCar/Smartrak should be implemented.

Monitoring vehicles using telematics is legal under the Surveillance Devices Act, so long as the driver has been informed that the vehicle is being monitored. The State Solicitors Office has advised that; ‘where a person uses a vehicle to which a tracking device is attached, if he or she knows that to be the case and understands that data concerning movements of the vehicle will be collected, that will constitute consent’.

The raw data gathered by telematics providers is protected by the data management, sovereignty, privacy and confidentiality clauses of the Fleet Services common use arrangement. The Government mandate requires Finance to report to Government in an aggregated sense on metrics such as vehicle utilisation and policy compliance. The Department of Finance has neither the intention, nor ability to view or report on the private use of vehicles (for instance, driver identity, after-hours destinations, or home addresses).

In selecting a telematics solution, agencies must choose the level of reporting they require. Options are available where the aggregated telematics data is made available to Finance only – where the agency has no ability to view or report on the use or location of any vehicles. Any agency that chooses a telematics option where such reporting is available, must consider their own options for managing that information as well as any privacy concerns raised by staff.

Participation in the Government Vehicle Scheme (GVS) or Senior Officers Vehicle Scheme (SOVS) is optional. Drivers with concerns about privacy and confidentiality may opt out of the schemes at any time. Agency CEOs also have discretion to allow or remove access to these schemes.

New vehicles will have telematics installed by the supplying dealership. Telematics hardware cost may be included in the State Fleet vehicle lease and paid over the life of the vehicle. Once fully in use, telematics efficiencies should generate fleet costs savings – for instance, FBT reductions.

There are three telematics providers on the CUA contractor panel, each with several hardware options.

Telematics issue resolution

Operational issues from fitting telematics may include device orders, expected installation dates for devices, device removal and return, device refurbishment, billing, guidance to use the telematics portal, and reporting queries for report content definitions.

Technical issues such as vehicle movements not tracking, intermittent tracking, and positive and negative changes in calculated odometers may take longer to resolve.

Provider teams try to resolve issues quickly but may require additional information, a physical inspection of a device or in some instances the warrantable replacement of the device.

Before contacting your provider please have this information ready.

  1. Has the device been removed from the vehicle?
  2. Is the device power on or has an OBD unit fitted to a vehicle had an ignition-on event in the last 5 days?
  3. Has the device been switched between vehicles without the knowledge of your provider?
  4. Is the vehicle in a heavily built-up area which might cause satellite obstruction or degrade tracking quality?

Telematics support

If tracking integrity is compromised, your provider will ask you to make the vehicle available to their installer to correct. Or if you arranged your own installation, to contact your installer to correct the issue.

If the device has been switched off, you must ensure the device remains on, always plugged in and intact.

At times, a vehicle may need to be moved from an undercover carpark or heavily built-up area to ensure a good satellite connection so software can update. As your provider does not have control of the vehicle, they may ask for a vehicle custodian to temporarily move the vehicle for the update.

Page reviewed 5 October 2021