This document sets out Terms & Conditions upon which Smartleasing provides Managed Lease Services to you.
1. Definitions and Interpretation
‘Business Day’ means a weekday on which banks are open for business in Sydney, Australia.
‘Managed Lease’ refers to your vehicle lease, comprised of a financed lease component, operating costs and other products selected by you and administered by Smartleasing in accordance with these Terms & Conditions.
‘Managed Lease Services’ or ‘Services’ are the leasing administration services provided to you by Smartleasing and include:
1. provision of information to you to assist you in entering into a novated lease, sourcing a vehicle (where requested), determination of operating cost budget and products, and information as to how your Managed Lease will be administered;
2. administration of your Managed Lease;
3. payment of financing and operating costs selected by you that form part of your Managed Lease;
4. reporting to you on your Managed Lease; and
5. additional services as determined by Smartleasing from time to time and notified on its website or as otherwise approved by your employer.
“Managed Lease Vehicle” means a novated lease vehicle packaged through Smartleasing.
Only products and services identified in an approved list of products and services notified by Smartleasing on its website, or in an officially approved Smartleasing product profile as part of the Services which can be updated from time to time, or products and services otherwise approved by your employer may be included in your Managed Lease through Smartleasing.
The Services do not include the provision of financial advice to you. Smartleasing is not (and will not be) your agent, or otherwise act in a trustee or fiduciary capacity on your behalf.
Upon change in any applicable law, if it is determined by Smartleasing that the provision of the Services, or any relevant Service, is no longer compliant with any applicable law Smartleasing may discontinue administering the relevant Service or alter the way it is being administered to comply with the relevant laws.
The Services come with guarantees under the Australian Consumer Law that cannot be excluded or restricted by these Terms & Conditions and any clause that excludes or restricts your rights under those guarantees is subject to the Australian Consumer Law.
2. Acceptance and Term
1. Managed Leasing Services will be provided to you from the date when your completed application form is received and accepted by Smartleasing and until such time as a Service is terminated in accordance with these Terms & Conditions. By completing the application form you are indicating your agreement with these Terms & Conditions.
2. An application form may be obtained from Smartleasing
3. The information provided by you on any application forms (Managed Lease Application or Novated Lease Finance Application) must be true, complete and accurate. You must inform Smartleasing immediately of any changes to the information provided by you in these application forms.
4. You acknowledge that certain changes to your Managed Lease arrangements can be made by you notifying Smartleasing over the telephone without the requirement for the change to be effected or confirmed in writing.
5. Where you approve and sign a Vehicle Budget Review Approval form, you permit Smartleasing to make the authorised changes to your budget amounts. If you fail to execute and return the form and this affects Smartleasing's ability to provide the Services to you, Smartleasing reserves the right to withdraw Services in part or whole, as it sees fit."
6. Where your employer has undertaken to transition your lease from an existing lease arrangement as part of a transfer of all employer novated leases from another supplier and has provided the relevant information to Smartleasing on transition, an application form may not be required.
3. Service and Product providers
1. Smartleasing engages various third party providers in order to provide the Services to you as part of your Managed Lease arrangement. Where Smartleasing has a panel of providers, you must select a provider from the panel.
2. Smartleasing may change the list of third party providers from time to time and will provide notification of any such changes on its website or via direct communication. Where your selected provider is removed from the list, Smartleasing may, at its election, substitute such provider with a suitable alternate provider to provide the product or service to you.
3. Where you have a previous existing arrangement with a provider not included in Smartleasing’s list of providers, you may be required to transfer from your provider to one of the providers on the panel before you can commence your Managed Leasing arrangements with Smartleasing.
4. When the amount received from your salary is less than the payments Smartleasing must make on your behalf to third parties, some of the payments to those third parties will remain outstanding. When Smartleasing receives further payments from your salary, any outstanding payments to third parties will be prioritised before reimbursements are made to you.
4. Managed Lease accounts
1. Upon acceptance of these Terms & Conditions, you acknowledge that your employer will pay invoiced amounts that are part of your salary package arrangements with your employer as is necessary for Smartleasing to administer the Leasing Services for you, into a Leasing Account created and held on Smartleasing’s system. All amounts credited to your Leasing Account will be exclusive of GST.
2. Monies held in the Lease Account will not accrue interest that is payable to you and Smartleasing may retain any interest that does accrue.
3. Monies held in the Lease Account for unused Services will be repaid to your employer upon cessation, reconciliation and recovery (including deduction or offset) by Smartleasing of all sums owing to it under the Managed Lease arrangements. Any such repayment may then be taxed and paid to you as part of your PAYG salary by your employer, in accordance with your employer’s salary packaging policies.
5. Fees for administration of Service
1. The amounts invoiced to your employer by Smartleasing will include fees payable by you for administration of the Services.
2. With respect to these fees you acknowledge and agree that:
a. current fees are shown on your Managed Lease quote;
b. Smartleasing may increase the fees in accordance with its agreement with your employer. If you do not agree to any increase in fees, you may terminate the Services by giving one month’s notice in writing to Smartleasing;
c. Smartleasing is authorised to deduct the fees from monies held in the Lease Account in priority to other payments.3. Subject to your employer’s policy, if you terminate the Services throughout the year, which, for the purposes of the Services provided, is a Fringe Benefits Tax (FBT) year (from 1 April to 31 March), the full annual administration fee for the Services is payable to Smartleasing.
6. Lease Account administration
1. You agree to review the confirmation report provided to you by Smartleasing and to notify Smartleasing of any errors or changes required, including, but not limited to, budgeted amounts being invoiced to your employer, scheduled payments, bank account details and the accuracy of your identification details for your Managed Lease Vehicle.
2. To the extent permitted by law including the Australian Consumer Law, Smartleasing will bear no loss or any responsibility resulting from any data entry errors where a confirmation report was issued and you were given an opportunity to identify and correct such errors unless you can demonstrate that you have made reasonable efforts to make Smartleasing aware of such errors.
3. You must notify Smartleasing of any changes to bank account details immediately. Failure to do so will result in any cost associated with recovering or redirecting payments, as well as any bank fees, interest or charges that result, being charged to you.
4. Where you send a claim for reimbursement of expenses, you must keep a copy of the claim you submit and any supporting documents. Smartleasing will not return any original documentation to claimants, including rejected claims. If you request Smartleasing to return a copy of any transaction submitted, the expense in performing this request will be borne by you. Smartleasing will inform you of any such expense prior to any request being performed. You must inform Smartleasing of any inaccuracy in relation to a claim processed within 2 months of submission of any such claim.
5. Where you lodge a claim for reimbursement, this claim will be prioritised for payment after payments to third party suppliers have been made, and will be paid as and when all other expenses payable in respect of your Managed Lease do not exceed the funds that have been received by Smartleasing from your employer in respect of your Managed Lease. As a result you may be reimbursed for a claim over a number of invoiced billing cycles.
7. Managed Lease Vehicles
1. Where your employer offers a novated lease vehicle benefit, and you have elected to package a novated lease vehicle benefit through Smartleasing, it is a condition of entering into a Managed Lease with respect to the Managed Lease Vehicle that you purchase all fuel for the Managed Lease Vehicle on a Smartleasing approved fuel card. You must not use the Smartleasing fuel card to purchase fuel for any vehicles other than the Managed Lease Vehicle.
2. The only fuel purchases allowed to be claimed manually are those purchased while awaiting the issue of the Smartleasing approved fuel card or where the card was not able to be used and the purchase was urgent. For this purpose you are able to submit four (4) fuel claims per FBT year (1 April – 31 March).
8. Overdrawn Managed Lease account
1. Where you overdraw your account due to over usage of your fuel card, maintenance or otherwise, Smartleasing may, with notice to you:
a. cancel your fuel card; and/or
b. cancel all lease and operating payments; and/or
c. increase your budgets and invoice costs to your employer. Your employer will then increase your salary deductions to meet debts and cover future estimated spend.
2. Where Smartleasing is unable to recover the balance of the overdrawn account in a timely manner in accordance with the methods set out in section 8(1), Smartleasing may, at its sole discretion:
a. subject to the Employer Agreement, request your employer to fund the balance; or
b. engage a collection agency to recover the debt from you.
3. All reasonable transaction fees and other costs (including, but not limited to, external debt collection agency fees) incurred by Smartleasing in respect of the recovery will be payable by you.
4. Generally and subject to applicable legislation, Smartsalary is legally entitled to recover amounts with respect to any negative balance or any other amounts owing by you to Smartsalary in the period of 6 years of the debt becoming due (unless the collection of the debt is governed by the laws of the Northern Territory, where the period of 3 years generally applies).
5. You must only nominate a reimbursement account which you own or over which you have the authority to permit Smartleasing to direct debit in the event that your account becomes overdrawn.
9. Lost or Stolen Fuel Cards
1. If your fuel card is lost or stolen, you must tell us straight away. Once you notify us, we will cancel the fuel card immediately and arrange for a replacement fuel card.
2. As you have the ability to access and view your activity statements around fuel card expenditure every week, we expect you to notice any activity on your fuel card that does not reflect your usage and to notify us of such activity immediately. Subject to your compliance with paragraph 3 below and subject to our reasonable discretion, you will not be responsible for any unauthorised expenditure incurred in the period of 2 weeks before you first advise us of such expenditure (Grace Period). You will be responsible for all unauthorised expenditure incurred on your fuel card before the Grace Period.
3. If you advise us of unauthorised expenditure on your fuel card which occurred during the Grace Period, we will require you to file a Police Report and provide us with a copy of the Police Report/ Event Number within two (2) business days. If you fail to provide a copy of the Police Report/ Event Number to us within two (2) business days, you will be responsible for all unauthorised expenditure regardless of when such expenditure occurred. This requirement to provide a copy of the Police Report/ Event Number to us applies regardless of whether you proactively notify us of the unauthorised expenditure or advise us of such expenditure in response to our queries, including where you have never received your ordered fuel card.
10. Fringe Benefits Tax and Tax Returns
Where you have packaged a Managed Lease Vehicle, at each FBT year end and at the end of the lease you must provide a statutory declaration of your vehicle odometer reading. Where your employer engages Smartleasing to collect this odometer reading you will be advised and this declaration must be provided to Smartleasing. If no declaration is received as required by Smartleasing, FBT will be calculated by your employer based on their internal policy.
All new and or refinanced lease arrangements entered into with a commitment date after 16 July 2013 will have their FBT requirements calculated using the Operating Cost Method from 1 April 2014. Where the Operating Cost Method is applied, a log book over a continuous period of 12 weeks must be maintained during the first FBT year recording all kilometres travelled to determine the actual percentage of business and private use. Consequently, you will need to nominate at the commencement of your lease a business use percentage which will be used as an estimate until your log book is provided to Smartleasing. Where your employer engages Smartleasing to collect this information your will be advised and log book details must be provided to Smartleasing. If no log book details are received as required by Smartleasing, FBT will be calculated by your employer based on their internal policy. This log book must be retained for 5 years and provided to Smartleasing or your employer upon request. During the term of the lease if driving pattern changes (as per ATO guidelines) a new log book over another continuous 12 week period must be maintained and these details are to be provided to Smartleasing.
You acknowledge that the FBT requirements of your Managed Lease will be administered by your employer in accordance with your employer’s remuneration policies.
As per the current ATO guidelines, you must not claim work-related car expenses with respect to your Managed Lease Vehicle as a deduction on your tax return. You should obtain independent tax advice on any queries you may have about your tax return.
11. Cessation of a Managed Lease
1. If you would like to cease your Managed Lease or are ceasing employment with your employer, you must promptly notify Smartleasing of such cessation, and in any event notify Smartleasing of this within at least 10 Business Days of such cessation.
2. Upon ceasing a Managed Lease , it may take up to 6 weeks for Smartleasing to reconcile your leasing account. If you have an outstanding balance on a Smartleasing issued fuel card, the amount will be recovered from your account balance. If you still owe a debt after the balance of your lease account has been applied, Smartleasing will recover this from your employer, and your employer may seek to recover this outstanding balance from you.
3. You may remain liable to your employer for any outstanding amount owed by you on cessation of your Managed Lease or at the end of any FBT year.
4. On cessation of your employment or your Managed Lease for any reason, Smartleasing may immediately cease provision of the Services to you. You will be responsible to meet any ongoing commitments from the date of such cessation, including your finance lease payments.
5. If you in any way misuse a product or service or use it in a manner which is fraudulent or which may constitute a breach of FBT laws and regulations, or you commit a material breach of these Terms & Conditions or become bankrupt, Smartleasing may immediately cease provision of the Service to you by providing you with notice. If you fail to comply with these Terms & Conditions in any other way, Smartleasing may cease provision of the Service to you on at least 10 Business Days' notice.
6. Where Smartleasing provides comprehensive insurance, roadside assistance or maintenance services through Smartleasing or one of the Smartleasing partners and the Managed Lease arrangement with Smartleasing ceases, your comprehensive insurance coverage, roadside assistance and maintenance services will also cease. You will be responsible for ensuring that your vehicle is appropriately insured and other services you may require are arranged by you from:
a. your date of cessation of employment; or
b. the date notified by you to Smartleasing via your Cessation Form; or
c. the date notified by your employer to Smartleasing; or
d. on lease maturity or early payout whichever occurs first.
12. Suspension for non payment
If you or your employer fails to make any payments due to Smartleasing, Smartleasing may suspend the Services to you with notice, unless and until all such overdue payments are made to Smartleasing.
You acknowledge and agree that:
1. Smartleasing (and its affiliates) may receive payments or commissions from the third party providers of goods and services who provide such goods and services to you as part of your Managed Lease, and as a result of Smartgroup receiving these benefits, you should not expect that any advice or recommendations given by Smartsalary will be disinterested, nor will Smartsalary disclose any conflicts of interest to you;
2. Smartleasing is not required to make payments for benefits forming part of your Managed Lease or otherwise if there are insufficient funds to make such payments in the Lease Account and will not be liable for any penalties, interest or other charges payable due to any delay in payment resulting from insufficiency of funds in the Lease Account;
3. all information provided by you to Smartleasing is true and accurate and where any incorrect bank account information is provided, any bank fees and administration costs resulting from that error will be deducted from your Lease Account;
4. you have read the rules for each Managed Lease product provided by Smartleasing as part of the Services from time to time and will abide by those rules;
5. these Terms & Conditions are updated from time to time by Smartleasing and by continuing to use the Services you are deemed to accept these changes and you are bound by the most current version. If you disagree with any such changes to the Terms & Conditions, you can elect to discontinue the provision of the Services to you and the Terms & Conditions applicable immediately prior to the cancellation by you of the Services will apply to the relationship between you and Smartleasing.
14. Authorisation to Smartleasing
You authorise Smartleasing to:
1. in its discretion, change the components of your Managed Lease by providing you with notice but without specific authorisation from you so as to ensure that the Managed Lease services selected and notified by you to Smartleasing are able to be provided;
2. adjust invoiced amounts, with notice to you, in accordance with your Managed Lease arrangements. These will be administered in accordance with your employer’s remuneration policy;
3. direct your employer to pay additional monies into the Lease Account by providing you with notice but without specific authorisation by you if such additional sums are required in order to pay for the Managed Lease or Services; and
4. record any telephone conversation(s) between you and Smartleasing.
15. Governing law and jurisdiction
The laws of the State of New South Wales shall govern these Terms & Conditions and the parties submit to the non-exclusive jurisdiction of the courts of New South Wales and the Federal Court of Australia, Sydney, NSW Registry.
Last updated: 11 December 2018.