WA Health Motor Vehicle Fleet Policy

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1 WA Health Motor Vehicle Fleet Policy Delivering a Healthy WA

2 Document Control All efforts are made to ensure that this policy accurately reflects the WA Government s Fleet Policy and Guidelines - August 2007 Date Reviewed : December 2007 Date Updated : December 2007 Next review date : December 2008 (subject to State Fleet requirements) Changes this version : Full review Author : Facilities and Operations Branch, Business Unit Sections updated: Section No Section Title Sub Section Title Date Changed All All All December 2007 Note: All requests for changes to this policy manual are to be made through the Manager, Business Unit, Health System Support, Department of Health, on (08) Approved by and effective on the date of the signature below: Name : Dr Neale Fong Signature : Position: Director General, WA Health Date : Page 2

3 Table of Contents 1 Definitions Introduction Legislative base Exemptions Strategic Fleet Management...7 Step 1 Get the composition right...8 Step 2 Get the utilisation right...8 Step 3 Get the information management right Fringe Benefits Tax Strategic Fleet Management Plan Vehicle Composition Vehicle Selection Factors Replacement of existing Q-plated vehicles Environmental factors Monitoring and Reporting Vehicle Specification Vehicle Type (Make, Model and Colour) Vehicle Accessories...13 (a) Standard Accessories...13 (b) Extra Accessories Exceptions Duty of Care / Occupational Safety Vehicle Utilisation Penalties Fair Wear and Tear Standards Operational Fleet Management Vehicle Management Registration Insurance Maintenance Pooling Records of Usage Records Management Fleet Management Records Analysis and Reporting / Internal Cost Assignment Internal reporting Reporting to the Fleet Steering Committee Lease Payments Fair Wear and Tear Criteria Vehicle Use General Conditions of Use Approved Drivers...21 Page 3

4 7.1.2 Passengers Vehicle Use No Smoking Recording Systems Traffic/Parking Infringements Security Insurance In the Event of Loss or Accident Home Garaging / Commuting Privileges Most Direct Route Operational Availability Maintenance - Routine and Periodic Parking/Security Government Vehicle Scheme (GVS) Private Use Senior Officer Vehicle Scheme (SOVS)...28 Appendix 1 WA Government Fleet Steering Committee Framework...31 Appendix 2 Ordinary Plate Procedure...33 Appendix 2A Licensing of Motor Vehicle(s) with Non-Government Plates...34 Appendix 2b Re-Licensing of Motor Vehicle(s) with Non-Government Registration Plates...35 Appendix 3 Department of Health Best Buys Vehicle Selection List...36 Appendix 4 Definition of PSA Level 8 (PSGA Level 8)/ HSOA Level 11 and above...37 Appendix 5 Senior Officers vehicle scheme (SOVS) - Government Vehicle Scheme (GVS) - Application to Participate...38 Page 4

5 1 Definitions Chief Executive Includes both Area Chief Executives and Divisional Executive Directors. This also refers to the delegation of authority by these officers to their appointed representative during times when they are absent from their work due to authorised leave. Best Buys Vehicle Selection List This is a list of vehicles available to WA Health developed in line with the Department of Treasury and Finance (State Fleet) Fleet Guidelines. FleetAustralia State Fleet Government vehicle fleet managers selected by WA Health to manage their vehicles from the Common Use Contract arrangement Motor Vehicle Fleet Services (CUA mandatory - expires 31 July 2007). Part of the Department of Treasury and Finance, State Fleet manage the lease arrangement for the Whole of Government vehicle fleet. Page 5

6 2 Introduction The objective of this policy is to provide a framework for improved management of all Western Australia Health passenger and light commercial vehicles. This policy will: Ensure that motor vehicles are selected, acquired, and used in ways that provide the best possible support to WA Health operations; Optimise the efficiency and effectiveness of the fleet to achieve both operational and financial benefits. Ensure consistency with the department s strategic direction and accurately reflect the WA Government s Fleet Policy and Guidelines - October Health services are required to comply with the requirements of this policy unless an appropriate exemption has been granted in writing by the WA Government Fleet Steering Committee Framework. Page 6

7 3 Legislative base The Western Australian Government Fleet Policy is to be applied consistently with the requirements of all relevant legislation, policies and contractual arrangements as determined from time to time. The WA Government s Fleet Policy and Guidelines are developed in line with the relevant legislation, policies and contractual arrangements. In complying with these fleet guidelines, the Department of Health Motor Vehicle Fleet Policy also meets the same legislative base. This includes: Public Sector Management Act 1994; Financial Management Act 2007; Treasurer s Instruction 411; Treasurer s Instruction 812; State Supply Commission Policies; Occupational Safety and Health Act 1984 and Road Traffic (Vehicle Standards) Regulations Exemptions The WA Government s Fleet Policy and Guidelines for vehicle selection will not apply where a vehicle is: Accessed as part of an officer s total employment cost pursuant to a determination of the Salaries and Allowances Tribunal (SAT). Vehicles provided as a SAT entitlement are private vehicles and are not governed by this policy. Provided to non-sat Area Chief Executive s as remuneration in accordance with the Public Sector Management (General) Regulations Accessed by employees under private leasing arrangements such as novated leasing. 5 Strategic Fleet Management Agencies should generally have a Strategic Fleet Management Plan in order to establish and maintain the most cost effective balance of fleet composition and utilisation to achieve their operational needs. This section provides a structured approach vehicle management and outlines significant considerations to achieve and maintain the most effective balance of vehicle composition and utilisation to meet WA Health s operational needs. There are three key steps in WA Health s strategic fleet management process: 1. Get the composition right; Page 7

8 2. Get the utilisation right; and 3. Get the information management right. Step 1 Get the composition right The first step is to define the operational needs, and then match the fleet size and mix to those needs. A number of factors need to be considered, these are: Operational requirements What are the current and future operational needs? Are there alternative ways to meet those needs, such as short-term vehicle hire, taxi vouchers, etc? Fleet size Can it be reduced? Can a new or replacement vehicle be justified? Fleet mix Is there an appropriate mix of vehicles to adequately meet varying operational requirements and optimise resale? Is there a structured process that considers all aspects of vehicle specification, additional accessories and the impact these can have on lease rates, operating costs, resale and whole of life cost? Step 2 Get the utilisation right Once the number and mix of vehicles that are required to meet operational requirements have been established, a strategy is required to make the best use of those vehicles to minimise costs. Health services can rationalise their fleet and pooling arrangements by: Maximising use Maximising the use of all vehicles can have significant financial benefits and reduce the size of vehicle pools, and minimising the department s Fringe Benefits Tax (FBT) liability (see Fringe Benefits Tax). Offsetting FBT liability Home garaging of Q-plated vehicles shall only occur where: Safe and secure parking on Health business premises is unavailable; or Home garaging is required for operational purposes. In both instances, prior approval must be granted by the Area Chief Executive. Page 8

9 Alternately, converting Q-plated vehicles to ordinary plated vehicles, for which employees pay a contribution in return for private use, can also significantly offset (or even eliminate) the FBT liability. The Government Vehicle Scheme (GVS) Private Use and Senior Officer Vehicle Scheme (SOVS), both provide an effective mechanism to achieve this. Step 3 Get the information management right To get the best value from their fleet, Fleet Managers / Co-ordinators need to understand their current fleet in order to review its performance and to plan for future fleet needs. To do this, they will need: Current and relevant information about their fleet; and The relevant expertise to make informed decisions about their fleet composition and utilisation. Recording information WA Health Fleet Managers / Co-ordinators need to capture relevant information through the use of an asset register, vehicle booking and logbooks, a record of GVS participation, vehicle justification and Fringe Benefits Tax paid. These records must be maintained either on a corporate register or on an official departmental file and listed on the departmental record system, for audit purposes. Getting the right advice Support and advice to assist WA Health strategically manage its fleet are available through the FleetAustralia and/or State Fleet Planning and reviewing Since operational needs and fleet arrangements change over time, WA Health Fleet Managers / Co-ordinators need to review their fleet requirements continually and carefully plan for their future needs. The Fleet Steering Committee will periodically request information about WA Health s plans and assess compliance with the Government policy through audits and surveys. 5.1 Fringe Benefits Tax A fringe benefit is a 'payment' to an employee, but in a different form to salary or wages. According to the fringe benefits tax (FBT) legislation, a fringe benefit is a benefit provided in respect of employment. This effectively means a benefit provided to somebody because they are an employee, such as when the employer allows an employee to use a work car for private purposes. Page 9

10 FBT applies when there is either private or commuting use. Maximising the kilometres travelled per vehicle can substantially reduce the affect of FBT. Health services should manage the vehicle use across the fleet so that the average kilometres per vehicle exceed the FBT threshold points of: 15,000; 25,000; or 40,000 kilometres per year If vehicles are consistently registering low kilometres travelled, or below the FBT threshold points, action must be taken to manage this such as reassigning these vehicles to other business areas where vehicles are travelling in excess of the required kilometres. 5.2 Strategic Fleet Management Plan Area Health Services shall have a Strategic Fleet Management Plan in order to achieve and maintain the most effective balance of vehicle composition and utilisation to meet their operational needs. Developing a Strategic Fleet Management Plan will allow Area Health Services to: Define the operational needs for its fleet; Regularly assess their existing fleet composition and see how well it matches those requirements; Consider and implement where applicable, mechanisms to modify their fleet to better meet those needs; and Monitor and review performance and effectiveness of the fleet in line with changing operational requirements. A Strategic Fleet Management Plan allows Area Health Services to set targets and monitor their fleet s performance. The plan should demonstrate progress in: Analysing operational vehicle use; Minimising whole of vehicle life costs; Maximising pooling arrangements; and Rationalising fleet size. The following key indicators should be included in a Strategic Fleet Management Plan: Page 10

11 Composition Utilisation Information Management Key Indicators Sources and types of vehicle Categories and extent of vehicle usage Analyse Operational Vehicle Use Minimise Whole of Life Vehicle Costs Maximise vehicle Pooling Vehicle pooling Conversion to ordinary plates Log books Analysis and reporting Average FBT paid per vehicle Rationalise Fleet Size Primary key indicator Secondary key indicator 5.3 Vehicle Composition Vehicle Selection Factors It is a WA Health policy directive that: All WA Health vehicles are to be leased through State Fleet, except where prior approval has been obtained from State Fleet to enter into an alternative arrangement. All new or replacement vehicles are only to be selected from the Best Buys Vehicle Selection List ; All new vehicles required to service operational needs, whether additional or replacement shall be a four cylinder vehicle; All vehicles will have an Australian New Car Assessment Program (ANCAP) rating of 4 or greater; Where conditions or business needs require a larger capacity vehicle, requests must be supported by a business case and have the approval of the Area Chief Executive; and Where approval has been granted by the Area Chief Executive for a health service to acquire a six cylinder or commercial (4WD) vehicle, the selection Page 11

12 shall be restricted to those six cylinder and 4WDs listed in the Best Buys Vehicle Selection List. Vehicles may be added to or removed from the Best Buys Vehicle Selection List periodically, based on WA Health s strategic fleet requirements Replacement of existing Q-plated vehicles Replacement of existing operational vehicles is not automatic. When a vehicle is due for replacement, a review of the operational needs for which that vehicle is to be used must be conducted, taking into account environmental, operational and financial factors. All requests for additional and replacement vehicles must be supported by a business case and have the approval of the Area Chief Executive; this must be submitted to the Area Health Service Fleet Manager / Co-ordinator Environmental factors Four cylinder vehicles normally produce significantly lower greenhouse emissions than six cylinder vehicles, either petrol or LPG. The Whole of Life cost of these vehicles is also less than the larger six cylinder vehicles. Accordingly, a four cylinder vehicle is the preferred choice for both economic and environmental reasons. All WA Health employees qualifying for a vehicle are required to select four cylinder vehicles in all instances. 5.4 Monitoring and Reporting WA Health is required to report periodically to the Fleet Steering Committee on the application of the WA Government s Fleet Policy and Guidelines. The information provided will include information where: Exceptions to the policy have been applied, The number of vehicles involved; and Details of the business case, together with data on the extent to which the make up of WA Health s fleet has changed in light of this policy. Consequently, it is imperative that this monitoring and reporting information is captured by the Fleet Managers / Co-ordinators with regard to their existing fleet. 5.5 Vehicle Specification Each Area Health Service should establish internal standards for the specification (type, accessories, safety) of vehicles. These standards shall be consistent with the WA Government s Fleet Policy and Guidelines, and should take into account the operational requirements of the vehicle, occupant safety and the whole of life cost to the agency. Page 12

13 5.5.1 Vehicle Type (Make, Model and Colour) Chief Executives are required to determine (in consultation with their Fleet Manager / Co-ordinator) the appropriate fleet mix and will select both Q-plated and ordinary plated vehicles based on operational needs, whole of life costs and overall value for money. The following should be considered: The Government fleet benefits from its diversity of vehicle makes, models and colours. Vehicles should be selected to cater for the range of the WA Health s business needs in a balanced way, and where possible, to optimise resale values. Vehicle colours should be restricted to light or non-metallic colours where possible to minimise refurbishment costs. Black vehicles are not permitted for either general pool, GVS or SOVS. The whole of life operating costs include monthly lease charges or the purchase price, running costs and decommissioning / refurbishment costs. Seeking advice from FleetAustralia on the selection of the most effective lease term. Restricting the purchase of new and replacement vehicles (including those under the GVS ) to the Department of Health Best Buys Vehicle List, unless a business case justifying the reason(s) for not selecting a vehicle from this list has been approved by the Area Chief Executive. The final choice of vehicle from the Best Buys Vehicle List must be based on the lowest cost option that will meet operational needs. The preference of an officer who will be assigned private use of an ordinary plated vehicle under the GVS may be considered. Private use preferences however, shall be sub-ordinate to operational needs and the vehicle selection requirements above as participation in the GVS is a discretionary benefit Vehicle Accessories Chief Executives have the discretion to approve the fitting of a range of accessories to meet genuine operational requires. These fall into two categories: (a) Standard Accessories These are accessories that would normally be required and considered standard for Government vehicles: Air Conditioning; Automatic Transmission; Power Steering; and Mud Flaps. (b) Extra Accessories There is a range of functional or safety accessories that may be approved for genuine operational needs, particularly in regional areas: Page 13

14 5.5.3 Exceptions Roo Bar (Approved passenger vehicles only and must be manufacturer approved and supplied). Tow Bar; Cruise Coontrol; Winch; Window Tinting; Airbags; Long-range Fuel Tank; Extra Spare Tyre; and/or Anti Lock Braking System. SOVS participants (PSA Level 9 / HSOA Level 12 and above) may fit a tow bar for private use, at no personal cost, subject to the Area Chief Executive s approval. Alternatively, they may choose other accessories (e.g. child restraints), to the value of a tow bar for the specific make and model of the vehicle. The value of any such accessories must include the cost of installation. These items will be disposed of with the vehicle. Health services should consider the whole of life costs associated with the addition of accessories, including fitting, removal and vehicle restoration costs, as well as the impact on lease rates. It is important to understand the impact accessories may have on vehicle lease rates. Other than air conditioning, any accessory added to a vehicle is not usually included for the purpose of calculating the vehicle s residual value. As a consequence, the total cost of the accessory has to be amortised or depreciated over the lease period. It is not uncommon for a vehicle with accessories to incur a higher lease rate than a higher value vehicle with the accessories included as standard. Hence, whilst the most basic model is generally recommended when selecting a vehicle, where a health service s operational requirements necessitate inclusion of accessories, a higher specification vehicle that includes the required accessories as standard may represent better value for money. FleetAustralia is available to provide advice on this matter. In the case of high value operational accessories, consideration should be given at the vehicle disposal stage to transferring them from one vehicle to another where possible. Accessories should only be added to WA Health vehicles to meet genuine operational requirements. Roo Bar - This accessory will only be available for vehicles required to undertake regular travel to the country. This will be subject to approval of the Area Chief Executive; and Page 14

15 SOVS assigned vehicles, where specific SOVS accessories conditions apply Duty of Care / Occupational Safety Standards for vehicle specification shall take into account WA Health s duty of care under the Occupational Safety and Health Act 1984 for the safety and security of vehicle occupants. The Chief Executives may determine that certain additional safety features should be specified, (whether they are fitted as standard or as added extras) to meet particular operational requirements. 5.6 Vehicle Utilisation It is important that when selecting a new or replacement vehicle, Area Health Services select the preferred kilometre specification and vehicle lease term that is as close as possible to the expected usage (Refer to 5.1 Fringe Benefits Tax). All leases will commence and terminate on the 15th day of the month in which the vehicle is either received or decommissioned. WA Health s contracted fleet manager FleetAustralia is required to recover the vehicle prior to lease expiry and undertake any necessary repairs in order to meet the fair, wear and tear criteria (Refer to 5.8 Fair Wear And Tear Standards). Following this, it will be transported for Auction. 5.7 Penalties Financial penalties will apply where either the conditions of the Government Fleet policy are not met. Appropriate vehicle management should be applied at all times to avoid incurring such penalties. Early termination Where a lease is terminated prior to the end of the term, the health service will be charged an adjustment equivalent to 85% of the remaining lease payments to the termination of the lease. State Fleet will calculate the adjustment at the termination of the lease and invoice the Area Health Service at this time. Failure to return vehicle at end of lease term It is the responsibility of the Fleet Manager/Co-ordinator to ensure that the vehicle is available for collection at the end of the lease period or on a date nominated Fleet Manager/Co-ordinator as part of their strategic fleet management. Where a vehicle lease is not terminated by the end of the lease term the Area Health Service is required to make a further monthly lease payment for each month or part thereof beyond the lease. Where the vehicle is not returned within three months of the end of the lease term, State Fleet is permitted to increase vehicle rental by up to 50%. Page 15

16 Overuse adjustment Where a vehicle exceeds its vehicle kilometre specification by more than 5,000 kilometres, the health service will be required to pay State Fleet an overuse adjustment comprising a fixed component of $200 plus a variable component of $0.07 per kilometre up to 80,000 kilometres and $0.10 per kilometre above 80,000 kilometres. State Fleet will calculate the overuse adjustment at the termination of the lease and invoice the health service at this time. Regular monitoring of fleet performance should give early notice of the risk of this penalty. Underutilisation Where a vehicle fails to meet its kilometre specification, the Area Health Service will incur an increased FBT liability (Refer to Fringe Benefits Tax) where it evident that a vehicle is being underutilised, the internal fleet coordinator shall endeavour to relocate the vehicle within a high demand area. Health services should consult with FleetAustralia in determining their requirements as this will ensure that the cheapest lease term is selected. Late payments Late lease payments will incur penalty charges. 5.8 Fair Wear and Tear Standards Allowable Fair Wear and Tear includes Body Damage Allowable Fair Wear and Tear includes superficial scratches and scuffs to bumpers; stone chipping on front and lower sides of the vehicle; and minor scratches to paint work provided that the surface of the paint is not broken. Unallowable Fair Wear and Tear includes Body Damage Scrapes and scratches where the paint surface is broken or paint discolouration on the vehicle exterior; dents or other impact damage; broken or cracked lenses; roof and gutter damage caused a by roof rack; and any other patent or visible signs of being involved in an accident. Interior, Boot, Carpet and Trim Any tears, holes, rips and cuts to seats, interior trim, carpets and roof lining; oil, glue, chemicals or other substances which cannot be removed using propriety cleaners; and cigarette burns Page 16

17 Windshield Any cracks, scratches and stone chips such that the vehicle would not pass a roadworthiness test. Vehicle Components and Accessories Missing, damaged or broken components. General Any damage or potential damage arising from the failure to service and maintain the vehicle in accordance with the manufacturer s recommendations or instructions. Assessment State Fleet will be responsible for making the final determination as to what constitutes Fair Wear and Tear. 6 Operational Fleet Management 6.1 Vehicle Management Registration All WA Health vehicles shall be fitted with Government licence plates (Q-plates) unless they meet one of the following criteria: The vehicle has been approved by the Area Chief Executive for use in the Government Vehicle Scheme (GVS). The Treasurer has granted an exemption, e.g. there is an operational requirement for confidentiality, sensitivity or security reason and there are not enough Government Vehicle Scheme (GVS) vehicles to meet this need. Vehicles meeting any of these criteria may be fitted with ordinary licence plates (Refer to Appendix 2 Ordinary Plate Procedure), Health services shall maintain appropriate documentation to support each ordinary plated vehicle being either: A copy of a completed SOVS/GVS - Application to Participate form approved by the Area Chief Executive; or A letter from the Fleet Steering Committee confirming that the Treasurer s approval has been granted for security, surveillance or confidentiality purposes. Requests for exemption should be directed to the Fleet Steering Committee and must justify the requirement and explain why it cannot be resourced through GVS ordinary plated pool of vehicles. Page 17

18 Any vehicles which are not part of the GVS but have been fitted with ordinary plates under an exemption for operational purposes (e.g. security, surveillance) shall not be used for private use unless expressly approved by the Area Chief Executive Insurance Each Area Health Service shall ensure that adequate insurance cover is in place for all vehicles at all times. In the event of an accident or loss, health services shall comply with the procedures set down by the Insurer and, where applicable, in the Fleet Management Services Contract. Treasurer s Instruction 812 mandates appropriate insurance cover for all Government motor vehicles. Unless exempted by the Treasurer, all health services are required to participate in the Insurance Commission of Western Australia (Risk Cover) process. Health services shall ensure that appropriate procedures are followed in the event of an accident or loss. These procedures shall be in accordance with those specified by the Insurer and, where applicable, in the Fleet Management Services Contract. These procedures provide for the Fleet Manager (FleetAustralia) to assess the cost effectiveness of making an insurance claim and to process a claim or make other arrangements Maintenance All WA Health vehicles shall be maintained in a safe, clean and roadworthy condition and consistent with manufacturers warranty requirements. Health services should ensure that all officers responsible for vehicles understand their obligations with respect to routine and periodic maintenance. Vehicles should be kept clean and tidy; refuelled when necessary, oil, coolant and tyres should be checked regularly, air conditioning run regularly, etc. Vehicles should be regularly serviced and maintained according to the manufacturer s recommended specifications. Further information can be obtained from the Fleet Managers / Co-ordinators. 6.2 Pooling All WA Health vehicles (including those under the GVS) are to be made available for operational use during normal business hours unless specified otherwise by the Area Chief Executive. Suitable booking out and recording systems should be maintained so that vehicle availability and location can be determined at any given time. 6.3 Records of Usage Each Area Health Service shall maintain records of vehicle usage in order that WA Health can: Measure the extent of operational and private use and calculate fringe benefits tax liability for all WA Health vehicles (log books); and Page 18

19 Identify the person responsible for the vehicle when an infringement, damage or loss occurs for all vehicles (booking-out system). Log books are required for all Q-plated vehicles and must measure both operational and commuting usage. Log books for GVS vehicles must also be completed for three consecutive months of the year recording both operational and private use. This will allow the more cost effective operational method of calculating FBT liability to be used. A booking-out system must be maintained for all operational use of vehicles so that infringements and/or insurance matters can be directed to the person responsible for the vehicle at the relevant time. 6.4 Records Management Area Health Services shall maintain appropriate, auditable records in accordance with the WA Government s Fleet Policy and Guidelines, namely: Additional and Replacement Vehicle Justification; Vehicle Registration - Ordinary Plate Authority (Appendix 2 Ordinary Plate Procedure); Records of Usage (Refer to Records of Usage ); Fleet Management Records (Refer to Fleet Management Records); and Senior Officer Vehicle Scheme (SOVS) and Government Vehicle Scheme (GVS) - Application to Participate Fleet Management Records Health services shall ensure that systems are in place to maintain records of all vehicles as appropriate to the professional management of the fleet, including: Fleet Asset Register Recording of appropriate information for each vehicle (e.g. make model, registration number, accessories, acquisition and replacement/disposal dates, fuel consumption, etc) must be maintained on a central register. Operating Cost Records Records of all running costs associated with the fleet e.g. registration and insurance, fleet management fees, fuel, maintenance and servicing, acquisition and decommissioning, FBT paid, lease rates, etc are to be maintained. FleetAustralia can assist with this requirement. Page 19

20 6.4.2 Analysis and Reporting / Internal Cost Assignment Area Health Services will maintain a system to recognise and assign vehicle costs to each relevant management unit using the vehicle, e.g. a cost centre, business unit, program or project, the manager accountable for the vehicle. Area Health Services will ensure appropriate analysis and reporting are provided at both an operational/business unit level and at a higher strategic level to enable informed decision making by managers responsible for vehicle costs Internal reporting For the purpose of internal reporting, a vehicle will be recorded against an Area Health Service from the date the vehicle is delivered. The vehicle will cease to be recorded against the Area Health Service from the time the Fleet Manager (FleetAustralia) has been notified that the vehicle is ready for collection. Note: If for what ever reason the vehicle is not ready for collection when FleetAustralia arrange to collect the vehicle, FleetAustralia is under instruction to report this vehicle against the Area Health Service as an active vehicle on the quarterly report Reporting to the Fleet Steering Committee The WA Government Fleet Steering Committee Framework will conduct periodic audits and surveys of the Government fleet to assess the asset management principles and compliance with the Government s policy. Area Health Services will be required to provide the necessary information to the Fleet Steering Committee upon request. 6.5 Lease Payments Health services are required to make monthly lease payments for each vehicle. Area Health Services shall make monthly lease payments for each vehicle by the due payment date each month. Late payments will incur penalty charges (Refer to 5.7 Penalties). 6.6 Fair Wear and Tear Criteria All WA Health vehicles must be returned in good condition. Area Health Services are responsible for returning vehicles in good condition (fair wear and tear excepted) and will meet all costs of refurbishing a vehicle to meet fair wear and tear standards. The fair wear and tear standards are detailed in 5.8 Fair Wear and Tear Standards. Page 20

21 7 Vehicle Use Use of a Government vehicle is subject to a range of conditions. These conditions may differ depending on the type of usage designated for a particular vehicle or officer/driver. Officers should familiarise themselves with these conditions. 7.1 General Conditions of Use Any person responsible for, or in control of, a WA Health vehicle shall take due care for the condition and security of the vehicle and shall comply with this policy and all relevant legislation, traffic laws, regulations and by-laws. The following conditions must be observed by all officers/drivers using a WA Health vehicle unless otherwise approved by the Area Chief Executive Approved Drivers Only authorised personnel holding an appropriate and current driver s licence are permitted to drive a WA Health vehicle. Probationary drivers are permitted to drive WA Health vehicles for business purposes only Passengers Family members, friends or other persons not associated with official WA Health business must not be carried in WA Health vehicles, except where allowed under the SOVS and GVS or where approved by the Area Chief Executive Vehicle Use Vehicles are only to be used for official WA Health business or in other such circumstances that have been approved by the Area Chief Executive in accordance with this policy. Drivers are to ensure that the passenger and load limits legally permitted in the vehicle are not exceeded at any time No Smoking Smoking is not permitted in any WA Health vehicle at any time Recording Systems Drivers shall comply with policy with respect to the completion of keeping records of vehicle use Traffic/Parking Infringements Drivers of vehicles are personally responsible for the payment of any fines incurred for Infringements. Page 21

22 7.1.7 Security Vehicles must be: Parked in a safe and secure place at all times. Properly secured when unoccupied (ie. keys removed, doors locked and security systems activated). Confidential material and expensive equipment must not be left in unattended vehicles Insurance Any personal property carried or kept in a WA Health vehicle shall remain the responsibility of the officer to whom the vehicle is assigned at that time the property was placed in the vehicle with regards to losses or damage, unless such property is used in connection with official business In the Event of Loss or Accident Drivers shall comply with all legal and insurance requirements if involved in an accident, including: Obtaining particulars of the other parties involved; and Notifying the Police and your internal Fleet Manager/Co-ordinator. Drivers should also immediately report any theft or damage, however slight, to the Area Health Service s Fleet Manager/Co-ordinator with a view to repairs being undertaken at the earliest possible opportunity. Where Departmental vehicles are involved in an accident and damage has occurred to the extent that the vehicle is rendered unsafe by the diver or emergency services, the vehicles must be transported to a place of repair. 7.2 Home Garaging / Commuting Privileges WA Health vehicles not being utilised under the SOVS and GVS may be homegaraged where the Area Chief Executive is satisfied that this is justified on operational or asset management grounds. Home garaging is subject to specific conditions. SOVS and GVS vehicles will generally be preferred ahead of home garaging because of the cost saving benefits of SOVS and GVS. However, the Area Chief Executive may allow officers to home garage WA Health vehicles, not being utilised under the SOVS or GVS subject to specific conditions, including: Home garaging the vehicle must be more secure than leaving the vehicle on the agency s premises; The officer requires the vehicle for operational purposes outside standard business hours or prior to arriving at the office; Page 22

23 The benefit of home garaging a vehicle outweighs the FBT liability that home garaging normally attracts; and Be on a commute only basis. Officers home garaging vehicles are subject to all conditions of use specified in 7.1 General Conditions of Use as well as any conditions applied by the Area Chief Executive. Typical conditions are likely to include: Most Direct Route Officers should travel by the normal most direct route between their home and work. Occasional stops and small variations from the normal route are permissible. Regular variations must have the approval of the Area Chief Executive prior to the variation occurring Operational Availability Officers will make the vehicle available in the health services vehicle pool for operational use during normal business hours Maintenance - Routine and Periodic Assigned Vehicles The officer to whom the vehicle is assigned is responsible for the vehicle being kept clean and tidy; refuelling it when necessary and regularly checking oil, coolant, tyres, running air conditioning, etc. This officer will ensure that the vehicle is regularly serviced and maintained according to the manufacturer s recommended specifications. Unassigned and Pool Vehicles The WA Health Fleet Managers/Co-ordinators are responsible for ensuring vehicles are kept clean and tidy; refuelling them when necessary and regularly checking oil, coolant, tyres, running air conditioning, etc This officer is also responsible for ensuring that the vehicle is regularly serviced and maintained according to the manufacturer s recommended specifications Parking/Security The officer to whom the vehicle is assigned will make arrangements for off street parking at home, whenever practicable, with security precautions taken at all times. During official use, the officer will park the vehicle at a location convenient to the needs of the Area Health Service (at no cost to the officer) and the vehicle will be available for pool use. Page 23

24 8 Government Vehicle Scheme (GVS) Private Use WA Health vehicles may be made available for after hours private use under the GVS. Participation in the GVS is optional, but is subject to the Area Chief Executive s discretion, vehicle availability, officer eligibility, fortnightly financial contribution, and compliance with all conditions of the scheme. The GVS is primarily an asset management tool to assist in optimising vehicle use and reduce fleet operating costs. Vehicles must first be required operationally before they can be allocated for GVS use. GVS vehicles will generally have ordinary (non-government) licence plates and be available to the agency for business use during normal business hours. Operational requirements have precedence over private use. Area Health Services shall not, without the prior agreement of the Department of the Premier and Cabinet, include or infer in new or renewed contracts that a vehicle provided under the GVS represents any part of remuneration. The inclusion of motor vehicles as remuneration or, as an offset against specific or general wage claims, is not approved by Government. Participation in the GVS is subject to the following criteria: Eligibility All officers of the WA Health who are permanent or fixed term contract PSA Level 8 / HSOA Level 11 and above or Senior Registered Nurse (SRN) Level 10 are eligible to access the GVS subject to Vehicle Availability. All officers of the WA Health who are permanent or fixed term contract PSA Level 9 / HSOA Level 12 and above are eligible to access the SOVS subject to Vehicle Availability. GVS is not available in Temporary Special Allowance (TSA) situations, but may be made available to officers acting in a position where a GVS opportunity exists, at the Area Chief Executive discretion. Officers below the PSA Level 8 / HSOA Level 11 or SRN Level 10 who currently have an ordinary plated vehicle may retain their vehicle for operational purposes only, at the Area Chief Executive s discretion. Workplace Agreements that provide ordinary plated vehicles outside of current policy will be honoured, but phased out over time. Upon renewal of the agreement, existing employees with ordinary plated vehicles will transfer to the GVS, but no new entrants below PSA Level 8/HSOA Level 11 or SRN Level 10 will be permitted. Page 24

25 Part Time Officers Whilst part-time officers PSA Level 8 / HSOA Level 11 and above or SRN Level 10 can make application to join the GVS, they should be aware the Area Chief Executive Officer must be satisfied that all conditions of the scheme have been met. In particular, the vehicle must be available for use during normal business hours. Vehicles will not be available for private use for GVS participants employed on a part time basis, on days that they are not at work. Area Chief Executive Discretion Area Chief Executive discretion will determine whether the GVS can be made available based on budgetary constraints, and on what basis vehicles will be allocated. Officers wishing to participate in the contributory GVS will usually be allocated vehicles ahead of officers with home garaged/commuting privileges, irrespective of salary grade, except where out of hours operational duties are involved. Vehicle Availability WA Health s fleet size will be based on budget and operational needs. Vehicles will not be acquired, simply to allow participation in the GVS. Area Health Services are required to document justification for each vehicle in their fleet based on genuine operational requirements. Vehicle Selection Vehicles must be selected from the Best Buys Vehicle Selection List. Accessories Agencies will fund the cost of optional and/or safety equipment and accessories required for operational reasons. (Refer to Vehicle Accessories). Operational Use GVS participants will ensure that the vehicle is available during business hours on a daily basis and accepts that this availability takes precedence over private use. Leave GVS vehicles are predominantly and primarily operational vehicles. Consequently, such vehicles may not be available for officers to take on leave, unless: Area Chief Executive s must be satisfied that the operational purpose for which the agency obtained the vehicle will not be adversely impacted if the officer is allowed to take the vehicle on leave; and Where approval is granted to take a vehicle on leave, the period should be limited to no more than a normal period of annual leave. Page 25

26 If a vehicle is approved for use during leave, officers are not to drive interstate, travel great distances intrastate or use the vehicle on rough terrain. Fuel GVS participants who receive approval to take their vehicle on leave will be responsible for fuel costs incurred. Officers must use their fuel cards, in lieu of cash, to enable the Fleet Manager to keep track of kilometres travelled, fuel consumption and fuel purchased during leave. Contribution Participation in the GVS is subject to payment of a fortnightly contribution by the officer to the officer s health service. Contribution rates are available on the Best Buys Vehicle Selection List are reviewed by the Fleet Steering Committee each year and adjusted in line with the Consumer Price Index (Transport) for Perth. These are posttax deductions. Reimbursement of Contribution GVS participants are entitled to reimbursement of any contributions for times when the officer is not accessing the vehicle, eg during leave or when vehicle is required for operational use. Maintenance Routine and Periodic GVS participants are responsible for the vehicle being kept clean and tidy; refuelling it when necessary, and regularly running air-conditioning, checking oil, coolant, tyres etc. Officers will ensure that the vehicle is regularly serviced and maintained according to the manufacturer s recommended specifications. Approved Drivers GVS participants will ensure that no other person, other than the officer s nominee, drives the vehicle for private purposes. The nominee shall not be a learner or probationary driver. The approval of the Area Chief Executive must be obtained for the nominee to drive the vehicle. A record of all nominees shall be kept on a Departmental file. Compliance with Conditions Officers participating in the GVS must comply with all conditions specified under the GVS for their respective employment level. Officers participating in the GVS must also comply with the general conditions of use for Government vehicles (Refer to 7.1 General Conditions of Use). Suspension from the GVS Page 26

27 The right to participate in the scheme may be suspended in respect of any officer or nominee, at the discretion of the Area Chief Executive, if the officer or nominee: Is convicted of a serious driving offence; Is judged to have incurred excessive insurance claims; Has not maintained the vehicle in a suitable manner; or Has breached any of the agreed conditions. Termination from the GVS The Area Chief Executive has the right to terminate the private use of a GVS vehicle if it is no longer required for operational purposes or if the officer is no longer eligible for the GVS scheme under the terms and conditions of this policy. Participation in the GVS is optional; officers may themself elect to terminate GVS arrangements. Page 27

28 9 Senior Officer Vehicle Scheme (SOVS) WA Health vehicles may be made available for after hours private use under the SOVS. Participation in the SOVS is optional, but is subject to the Area Chief Executive s discretion, officer eligibility, fortnightly financial contribution, and compliance with all conditions of the scheme. Under the SOVS, all Senior Executive Scheme (SES) officers or equivalent may access WA Health vehicles for private use subject to paying fortnightly contributions and complying with all conditions set out in the policy. WA Health shall not, without the prior agreement of the Department of the Premier and Cabinet, include or infer in new or renewed contracts that a vehicle provided under the SOVS represents any part of remuneration. Access to or the provision of a motor vehicle is not to be used as an offset against specific or general wage claims, and should not form part of an employment contract. SOVS vehicles will generally have ordinary (non-government) licence plates and be available to the Area Health Service for business use during normal business hours. Participation in the SOVS is subject to the following criteria: Eligibility All officers of WA Health who are permanent or fixed term contract SES officers (or equivalent to PSA Level 9) and above are eligible to access the SOVS. The SOVS may also be made available to officers acting in a position where an SOVS opportunity exists, at the Area Chief Executive s discretion. Vehicle Availability Vehicles may be retained or acquired to allow SES or equivalent officers to participate in the SOVS. Vehicle Selection SES officers may select vehicles from the all tables 2 & 3 in the Best Buys Vehicle Selection List. Accessories WA Health will fund the cost of optional and/or safety equipment and accessories required for operational reasons. SOVS participants (Level 9 and above, or equivalent) may fit a tow bar for private use, at no personal cost, subject to the Area Chief Executive s approval. Alternatively, they may choose other accessories (e.g. child restraints), to the value of a tow bar for the specific make and model of the vehicle. The value of any such accessories must include the cost of installation. These items will be disposed of with the vehicle. Page 28

29 Operational Use SOVS participants will ensure that the vehicle is available for operational use during business hours, except when approved by the Area Chief Executive, for periods of paid leave. Leave At the discretion of the Area Chief Executive, SOVS participants may have the option of using their SOVS vehicle during periods of paid leave for up to 12 months. If this option is taken, the replacement officer will have access to the SOVS subject to vehicle availability only. Additional vehicles will not be leased for this period. Officers should exercise due restraint in the use of vehicles and not drive interstate, travel great distances intrastate or use the vehicle on rough terrain. Contribution Participation in the SOVS is subject to payment of a fortnightly contribution by the participating officer to the officer s health service. Contribution rates are available on the Best Buys Vehicle Selection List and reviewed by the Fleet Steering Committee each year and adjusted in line with the Consumer Price Index (Transport) for Perth. These are post-tax deductions. There is no remuneration value attached to SOVS participation and as such there will be no addition to an officer s salary should the officer choose not to participate in the SOVS or choose to access a less expensive vehicle. Reimbursement of Contribution SOVS participants are entitled to reimbursement of any contributions for times when the officer is not accessing the vehicle e.g. during leave or when vehicle is required for operational use. Maintenance Routine and Periodic SOVS participants are responsible for the vehicle being kept clean and tidy; refuelling it when necessary, and regularly running air-conditioning, checking oil, coolant, tyres etc. Officers will ensure that the vehicle is regularly serviced and maintained according to the manufacturer s recommended specifications. Approved Drivers SOVS participants may permit other persons (except learner and probationary) to drive the vehicle for private purposes. Page 29

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