Reimbursement for Use of Private Motor Vehicles Policy

MACQUARIE UNIVERSITY

REIMBURSEMENT FOR USE OF PRIVATE MOTOR VEHICLES POLICY

GUIDELINES AND PROCEDURES

Introduction

This policy establishes the procedures to be followed by staff members when seeking approval authority to use a private motor vehicle for University business travel and in claiming reimbursement for such use.

Staff members should only seek approval to utilise their private vehicle for University business, where:

·  no University vehicle is available,

·  public transport is not available or appropriate,

·  it is not reasonable or economic to use rental vehicles or taxis

Definition

A private motor vehicle is one owned by a staff member or a motor vehicle 100% salary sacrifice, is road worthy and is covered by comprehensive motor vehicle or Third Party Property insurance policy and is available for use if required.

Policy Statement

It is only where a University vehicle is not available and the travel cannot be postponed that the staff member should seek approval to utilise a private vehicle.

Approving officers within each Budget Unit are accountable for ensuring that:

·  it is necessary for the officer to use his /her private motor vehicle on official business

·  the officer has a current driver’s licence

·  the car is registered and insured

Requirement for Vehicle to be covered by Insurance

The University will only approve a request for the staff member to utilise a private vehicle for business travel where the staff member certifies that the vehicle is covered by a comprehensive motor vehicle or Third Party Property insurance policy indemnifying the University against any claims arising as a result of the use of the vehicle.

If a private vehicle is damaged whilst being used for University business purposes any 'normal' excess insurance charges prescribed by the insurer will be reimbursed by the University PROVIDED that:

·  the damage was not due to the fault or negligence of the staff member (provide police report);

·  the excess claimed by the staff member does not include any charges or amount prescribed by the insurer as punitive excess charges.

Note: The University will only REIMBURSE excess where a claim has been made

on the insurer and the insurer has deducted an excess at settlement.

All claims for excess reimbursement are to be submitted in writing to the Assistant Director, Business Services and MUST be supported by evidence of excess deduction applied by vehicle insurer.

The University WILL NOT accept any claims for damages other than in respect of insurance excess.

Claiming Motor Vehicle Kilometre Allowance

Private vehicle allowances can only be claimed when approval is granted prior to the vehicle's use for specific journeys.

Where a staff member is required by the University to use her/his vehicle in connection with the University’s business, such staff member will be paid for the use of the vehicle at the rates stipulated in the current University Enterprise Agreement.

The motor vehicle allowance rates are above the car expenses on “cents per kilometre” rates set by the ATO. The allowances will appear on Payment Summaries (former Group Certificates) and it will be necessary to substantiate any deduction claimed above the ATO rates. Payments in excess of 5,000 business kilometres will incur PAYG Withholding tax.

**Link to: http://www.ato.gov.au/individuals/content.asp?doc=/content/33874.htm&pc=001/002/013/005/001&mnu=45&mfp=001&st=&cy=1

All claims MUST be submitted on a “Motor Vehicle Allowance Claim Form” and be approved by the staff member’s designated supervisor provided they hold expenditure delegation.

The form can be downloaded from the following M.U. website: http://www.ofs.mq.edu.au/ofs_web/forms

All payments of vehicle allowance will be processed through Human Resources and be made via payroll. PAYG tax will apply to business travel greater than 5,000 kilometres and the amount will be shown as an allowance on the staff member's annual Payment Summary.

Calculation of Official Business Distances

Where a private vehicle is used for official business, a deduction from the allowance payable MUST be made to take into account the distance that would normally be travelled daily by the staff member from home to campus and return, together with any other distance travelled in a private capacity during the business use period.

In instances where the staff member is called back, after hours, for emergencies and is authorised to use his/her own vehicle, the appropriate kilometre allowance will be paid for the entire forward and return journeys.

OFS/Business Services Private Vehicle Reimbursement Policy 28/06/04 Revised 07/05/2007 as per HR