Project: Vehicle Fleet Policy yields savings of $115,000+

Rural Solutions SA in 2002 implemented a fleet vehicle policy targeting safety, cost and reducing the impact on the environment. (At that time, its fleet numbered 142 for a staff of 235.)

What we did:

• Managed the daily activities of staff fleet users to minimize private use and to ensure staff accurately completed log-sheets to meet ATO requirements
• Converted majority of fleet to LPG to reduce expenditure on fuel. (If a non-gas vehicle was ordered, the policy stipulated a business case was required to accompany the order for approval.) 
• Ensured vehicles were regularly serviced by monitoring closely from a central point.
• Alerted drivers to the importance of reporting any incidents (eg: damage incurred to the vehicle which may not have involved a third party).  This reduced Excessive Wear & Tear penalties when the vehicle was returned to Fleet SA.

What we achieved:

• Reducing the private use of fleet vehicles meant that Fringe Benefit Tax payments could be minimized. In 2003/2004, a saving of $115,000 in FBT was achieved.   
• The conversion of LPG vehicles not only reduced fuel costs, but also helped in reducing Rural Solutions’ CO2 “greenhouse gas” emissions. 
• More monitored vehicle servicing helped ensure better efficiency in vehicle performance, reduced unscheduled servicing costs and avoided a penalty fee when returning vehicles to Fleet SA.   (The penalty fee is incurred if a vehicle is returned to Fleet SA without having all scheduled services - according to manufactures recommendations - or if the logbook is incomplete.
• Compared with its larger PIRSA agency and general Government agency performance, the Rural Solutions SA policy and the strategic management of its vehicle fleet produced very positive results – which can be reproduced.

Contact: Tony Zimmerman