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Government Services Division
Novated Vehicle Lease Facility Information for Participating Agencies
The Department of Treasury and Finance (DTF) is the lead department responsible for the management of the Victorian
Government‘s (the State) Novated Vehicle Lease Facility Register. Under the Victorian Public Service Workplace
Determination 2012 VPS employees may elect to enter into salary packing arrangements with their employer using pre-tax
salary in respect of a novated lease on a vehicle. These costs are paid to the individual novated vehicle lease suppliers as part
of the employees’ remuneration salary package. These arrangements are not available to casual employees.
Under the Facility, the State (as employer) assumes the liability to meet the employee’s obligations to make repayments
under the novated vehicle lease, on the employee’s behalf, for as long as the employee remains an employee of the State.
The State’s move from the current model to a register model aims to provide VPS employees with more flexibility in their
novated vehicle lease options and aims to provide greater opportunity for industry to compete for Victorian Government
business.
Participating Agencies will:
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inform and update their VPS employees with a current list of Prequalified Suppliers on the register;
liaise with Prequalified Suppliers on the administration of the VPS employees lease agreement;
deduct a portion of the pay for the overall vehicle financing and running costs from the employees pre- tax income
and forward it to the leasing company;
manage relationship with Prequalified Suppliers and VPS employees;
at their discretion, may select to implement a “sole provider” model, a “multiple supplier” model or allow its VPS
employees to seek engagement from the complete list of Prequalified Suppliers. It is up to each Participating
Agency to choose the best model that suits their needs. Participating Agencies may wish to consult their own
procurement and/or legal areas prior to any decision being made;
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ensure Prequalified Suppliers meet service level and reporting requirements and escalate unresolved performance
issues; and
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may offer Prequalified Suppliers the opportunity to present to VPS employees, if applicable.
Use of the Register is solely at the risk of Participating Agencies accessing the Register. For this reason, Participating Agencies
are encouraged to perform all appropriate due diligence and make their own inquiries, prior to entering into any
arrangements with a Prequalified Supplier.
A review of the Register may be conducted at anytime throughout the life of the arrangement as determined by DTF.
Frequently Asked Questions
Who will be managing the Novated Vehicle Lease Facility Register?
Process maps for the management of the Novated Vehicle Lease Facility Register can be found on the Procurement Website www.procurement.vic.gov.au.
If I have any questions, who do I contact?
Depending on the question, you can contact your Participating Agency’s HR or a Prequalified Supplier.
For further information on the register model, please email [email protected].
Government Services Division
Novated Vehicle Lease Facility Information for VPS Employees
A novated vehicle lease is an agreement which enables VPS employees to lease a vehicle through a novated lease supplier
with the employer facilitating the arrangement by making fortnightly lease payments through payroll on their behalf.
It is the individual VPS employee’s decision to take on a novated vehicle lease and the employee is responsible for the
associated costs. These costs are paid to the individual novated vehicle lease suppliers as part of the employees’
remuneration salary package.
Under the Facility, the State (as employer) assumes the liability to meet the employee’s obligations to make repayments
under the novated vehicle lease, on the employee’s behalf, for as long as the employee remains an employee of the State.
VPS employees
Interested VPS employees will:
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liaise with their employer, as a Participating Agency, in relation to the list of Prequalified Suppliers;
approach a Prequalified Supplier for a quote;
seek independent professional advice in relation to taxation, financial and any other aspects of such an arrangement
(at their discretion);
complete the DTF endorsed Novation Deed with the nominated Prequalified Supplier;
complete any Participating Agency and Prequalified Supplier documentation (as required);
forward all completed documentation to Participating Agency HR/Payroll (or as directed by the Participating Agency)
ensure they inform the Participating Agency and their chosen Prequalified Supplier when circumstances affecting
novated vehicle lease change; and
be aware that DTF has only pre-qualified the Prequalified Suppliers and does not guarantee that Prequalified
Suppliers on the Register will be able to demonstrate the capability to deliver quality, services or competitive
pricing. VPS employees will need to conduct their own due diligence to ensure they are happy with their chosen
Prequalified Supplier, prior to entering into any arrangement with the Prequalified Supplier.
VPS employees should note that each Participating Agency may have different rules of use for this arrangement and should
contact their Participating Agency or chosen Prequalified Supplier if they have any questions about novated vehicle lease.
Depending on the question, you can contact your Participating Agency’s HR or your chosen Prequalified Supplier.
For further information on the register model, please email [email protected].