The Motor Vehicle Policy for NSW Government Agencies has been amended to take into account Recommendation 3.1 of the Internal Government Red Tape Review, which specifically relates to the alignment of FBT and ATO requirements. All of the recommendations from the Review are outlined in Circular 2007-26.

The effect of Recommendation 3.1 is to introduce the option of a log book every five years, or a full year running sheet that records only business trips. This policy amendment is consistent with FBT Reporting requirements of the Australian Taxation Office. The option of a log book every five years can only be used where private use is 80% or more of the expected total usage of the vehicle. This provision is intended to ensure cost effective fleet management for agencies.

The amended version of the policy is available on the Department of Premier and Cabinet's (DPC) website under Publications. The SES Guidelines will be amended in due course. CEOs should take steps to introduce these new arrangements when practical. Generally, this should occur for the 2008/2009 FBT Reporting year.

I also wish to advise that responsibility for the Motor Vehicle Policy has been transferred from DPC to StateFleet within the Department of Commerce. That said, DPC will continue to manage matters that are part of a broader public sector project, and any matters that have the potential to significantly affect executive salary packaging arrangements.

The Motor Vehicle Policy applies to all public sector agencies other than State Owned Corporations. This includes all agencies and employees in the Government Service (Public Service Departments, Non-Public Service Divisions and Special Employment Divisions), the Teaching Service, NSW Police and the NSW Health Service.