Circular 98-7 advised that the Premier had approved the sharing of the sales tax component of lease fees in accordance with the business/private usage included in each officer's package. The arrangements were introduced to take effect from 1 December 1997.

A number of agencies have made enquiries in response to Circular 98-7 concerning the arrangements. The enquiries relate to whether the sharing of sales tax was to be applied to all vehicles or only to new vehicles acquired on or after 1 December 1997. [Circular 98-7 also dealt with review of lease and interest rates which applied only to vehicles acquired on or after 1 December 1997].

The policy on the sharing of sales tax is to be applied to the lease rate component of all officers' remuneration package arrangements from 1 December 1997 ie. the sharing of sales tax is to be applied to all eligible vehicles not only to those acquired on or after 1 December 1997. To assist in the implementation of that policy an example of how the lease rate is to be applied from 1 December 1997 is attached. Would agencies ensure that all officers' packages are recalculated.

As advised in Circular 98-7, the full costs of the new arrangements are to be met from the current budget allocation.

C. Gellatly
Director-General

CURRENT SES MOTOR VEHICLE POLICY ON SHARING OF SALES TAX AND LEASING
PREMIER'S CIRCULARS 98-7 AND 98-40

The sales tax component is now to be shared with the Government in accordance with the proportion of private/business usage. The new arrangements are effective from 1 December 1997.

Practical example:

Sales Tax is included in the vehicle lease rates.

Monthly lease Fee

$500

Usage of motor vehicle (example)

70% Private
30% Business

Monthly payment by SES Officer

$500 x 70% = $350