Department of Finance, Services and Innovation
Department of Finance, Services and Innovation Circular
DFS C2014-03

DFS-C2014-03- Leasing Government-Owned Fleet Vehicles - Interim Arrangements


To provide information about the Department of Finance and Services' mandate on interim senior executive and employee vehicle leasing arrangements.

FunctionProperty ManagementSubjectLeasing
  • On 1 January 2014, the NSW Procurement Board assumed responsibility for governance of the Government’s motor vehicle fleet. Agencies retain responsibility for their fleets, preferably at the cluster level. Fleet management remains with StateFleet, Department of Finance and Services. The Government has requested that the Procurement Board prepare a  new NSW Government Motor Vehicle Fleet Policy. As part of the policy’s development, the Government has requested the Procurement Board to review current vehicle fleet policy, leasing and salary packaging arrangements as means to continue its commitment to achieving greater fleet efficiencies.

  • The Procurement Board has asked that the Department of Finance and Services mandate interim senior executive and employee vehicle leasing arrangements until the Government has considered the review’s recommendations.

The following transitional arrangements apply in relation to leasing government-owned vehicles (StateFleet or agency-owned) for the duration of the review period:

  1. Public Service agencies cannot enter into new salary sacrifice arrangements for senior executive* and non-executive employees to lease government-owned vehicles, except as provided below.
  2. Agencies may allow employees who currently have salary sacrifice arrangements for the leasing government-owned vehicles to continue with those arrangements. These employees may roll over their existing arrangements at the completion of their current vehicle leases.
  3. Secretaries and other agency heads may approve, on a case-by-case basis, new salary packaging arrangements for leasing government-owned vehicles, for stated special circumstances, provided the new arrangement does not increase the department’s or agency’s fleet size.

* Senior executive and non-executive employees can continue to salary package 100% novated lease vehicles, provided that these vehicles do not form part of the agency’s fleet.

Laurie Glanfield