Circular 96/12 required that the impact of sales tax be met by SES officers from their remuneration package, i.e. it was not to be shared by the agency. The imposition of sales tax coupled with the subsequent deterioration in the market for used vehicles, has led to significant increases in lease rates.

In response to this situation and following consideration by the Chief Executives' Committee, the Premier has approved the sharing of the sales tax component in accordance with the proportion of private/business usage included in the individual officer's package. The new arrangements apply to all officers who have access to a motor vehicle for business/private usage under the general arrangements applying to SES officers. The new arrangements are to take effect from 1 December 1997.

Agencies share of the sales tax component is to be met from their current budget allocation.

REVIEW OF LEASE RATES

A review of lease rates has been completed by Macquarie Bank, NSW Treasury, Tcorp and State Fleet Services. The new lease fees will take effect for new vehicles delivered on or after 1 December 1997 and will apply to all new vehicles delivered during the period 1 December 1997 to 31 May 1998.

Further deterioration in the second hand market for motor vehicles has resulted in a decrease in residual value settings with a corresponding increase in lease fees. This increase has in part been offset by a further reduction in users interest cost by 1% (7% to 6%). This reduction in the lease interest cost will also take effect for new vehicles delivered on or after 1 December 1997.

Attached is a table of lease fees which sets out indicative monthly lease rentals for a selection of motor vehicles under the Government's external leasing arrangement.

Contact: Megan Irwin
Yours sincerely Telephone: (02) 9228 3023
C Gellatly Email: [email protected]
Director-General 11-Feb-1998

INDICATIVE LEASE FILE

Quotations for: Pool Use

Rental Term: 24 Months

Vehicle

Cost

Previous

Current

Small Motor Vehicle

Corolla Csi 1.6 Sedan

$17,364
$224
$266

Medium Motor Vehicle

Camry Csi 4cyl Sedan

$19,140
$225
$290

Large Motor Vehicle

Commodore Executive Sedan

$20,834
$162
$243

4WD

Toyota Landcruiser Prado GXL

$33,699
$425
$497

Quotations for Private Use
Rental Term 24 Months

Large Motor Vehicle

Commodore Acclaim Sedan

$27,337
$410
$505

Ford Fairmont Sedan

$29,389
$437
$534

Mitsubishi Verada Xi Sedan

$37,419
$541
$649

4WD

Toyota Landcruiser Prado GXL

$41,113
$801
$863