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Fleet Handbook Australia

AU-products-services
Products
  • Fully Maintained Operating Lease
  • Non-Maintained Operating Lease
  • Finance Lease
  • Fleet Management
  • Sale and Leaseback
  • Employee Novated Vehicle Lease (salary packaged)
  • Non-vehicle item salary packaging
  • Carly – short term car subscription
  • Inspect 365 digital asset inspection and defect management
  • Integrated telematics
Services

Vehicle/asset purchasing and disposal, service/maintenance and repairs, tyre management, insurance, accident management, 24/7 roadside assistance, replacement/short-term vehicles, lease contract term/kilometre management, registration and CTP insurance services, fuel and fuel card/app management, strategic management, fleet consultancy (desktop analysis for non-customers), optimised purchasing negotiation, fleet administration, fleet policy analysis and recommendations, online reporting, online novated lease car configurator, drivers licence checking, driver training, risk management, direct driver contact, fringe benefits tax management, tied-to-payroll novated lease payment service, Inspect365 digital vehicle inspection defect reporting and repair management, heavy vehicle services including body-build consultancy and management.

Terms for Operating Lease
  • Passenger/Light Commercial

    • Minimum: 6 months /5,000 km per annum
    • Maximum: 60 months /200,000 km
  • Heavy Vehicles
    • Maximum: 84 months / kms by arrangement
Terms for Finance Lease / Novated Lease
  • 12 months
  • 60 months
  • 84 months – heavy commercials
au-vehicle-registration
Title

Vehicles/assets are registered with the relevant State/Territory authority in the customer’s name as the ‘operator’ of the vehicle/asset. Where the customer selects registration services, sgfleet’s details are provided to the State/Territory authority as the management provider. The service includes the relevant compulsory third party insurances. The delivering dealership handles the initial registration. The lessor is considered the legal owner of the vehicle. Each Australian State/Territory authority has its own method of calculating registration, compulsory third party insurance and purchase stamp duties.

Transfer of title

Where a vehicle title/ownership changes, the relevant registration authority in each State/Territory applies a purchase stamp duty payable by the acquirer. Amounts are generally between 3% and 6% of the purchase value.

Required documentation

Each owner has a customer number with the relevant State/Territory Authority. The Lessor must be confirmed by the owner as the managing agent on behalf of the owner. This is undertaken via letter advising on the owner’s letterhead. Proof of compulsory third-party insurance us a requirement before any vehicle can be registered. In some States/Territories, a vehicle roadworthy certificate is required from a licensed provider for vehicles of particular types or age.

Time frame

The initial vehicle registration is undertaken by the delivering dealer and can be provided within 2-3 hours. Registration renewals are generally undertaken online once the appropriate inspections and insurances are provided.

au-taxation
Goods and Services (GST) rate

The current GST is 10%.

Other vehicle-related taxes and fees

Luxury car tax (LCT) is a tax of 33% on luxury cars sold or imported where the value of a car exceeds the luxury car threshold. LCT only applies to the amount above the luxury car threshold.

The LCT threshold for 2016–2017:

  • Fuel-efficient vehicles: $75.526
  • Other vehicles: $64.132

 

Generally, you will be required to pay LCT if you are either:

  • registered, or required to be registered, for GST and you import or sell a luxury car – this includes retailers, wholesalers, manufacturers and other businesses that sell luxury cars or
  • an individual (private buyer) and you import a luxury car
Stamp duty

Stamp Duty is applicable to each state of Australia.

An example from one state (VIC) as at 2016-2017, is below:
Example (state of Victoria) as at 2016-2017
For new passenger vehicles, stamp duty is charged at the rates below.

Car values between $0 - $64.132 are calculated at $6,40 per $200 of the market value or part thereof.
Car values greater than $64.132 are calculated at $10,40 per $200 of the market value or part thereof.

For demonstrator vehicles, stamp duty is applicable at new car rates.

For used passenger vehicles, stamp duty is charged at $8,40 per $200 of the market value or part thereof Stamp duty is paid directly to the dealer, or to VicRoads for private sales.

Tax refund and accounting

In reference to Lease products: GST charged on the vehicle purchase is claimed back by Alphabet Australia as an input tax credit, so the amount financed is exklusive of GST; the customer therefore benefits from reduced rental payments. GST is charged on the monthly lease rental and residual value. If the customer is registered for GST purposes, input tax credits may be applied to offset some or all of the GST charges, dependent on the percentage of business usage included.

au-contact

Alphabet Australia
A division of BMW Australia Finance Ltd
Postal address P.O. Box 611,
Mulgrave VIC 3170
Australia

 

Phone: +61 1800 220 580
Email: alphabetaustralia@alphabet.com
Internet: www.alphabet.com/en-au

 

Latest update: September 2018