Vehicle short term loan guidelines

The vehicle short term loan program is a community service obligation (CSO), read the guideline below:

Background

Where Government specifically requires a Government Business Division (GBD) to carry out activities which the GBD would not elect to do on commercial grounds or would only undertake commercially at higher prices, such functions are designated as CSO. CSOs allow Northern Territory (NT) Fleet to achieve identifiable community or social objectives which would not be achieved if left to economic or market forces.

NT Fleet’s Vehicle Short Term Loan program is a CSO and is managed out of the NT Government’s light vehicle fleet. A 1.2% levy is included in the hire rate of passenger and light commercial vehicles on permanent or temporary hire to agencies to meet CSO cost.

Short term loans would generally last no longer than four weeks. The applicant bears responsibility for all vehicle running, maintenance and insurance costs over the loan period.

Vehicles available for short term loans are surplus to government requirements and include vehicles awaiting sale at auction.

Vehicles loaned will generally be from the light vehicle fleet. Heavy vehicles are not included in the vehicle short term loan program.

Eligibility

Eligible organisations

The vehicle short term loan program is available to not-for-profit charitable, volunteer or community based non-government organisations that have a physical presence in the NT and are incorporated under:

• the Associations Act (NT)
• the Corporations Act 2001 (Commonwealth)
• the Corporations (Aboriginal and Torres Strait Islander) Act 2006 (Commonwealth)
• any other Act of Parliament.

The vehicle loan program is also available to;

• organisations/individuals funded through the NT Major Events Company’s Event Funding Program
• one-off applications assessed on an individual basis taking into account community benefit.

Ineligible organisations

The following would not meet the eligibility criteria for vehicle loans:

• an organisation licensed to operate electronic gaming machines
• a body corporate or similar
• a government or semi-government organisation such as a library or councils
• a public or private school - including primary, secondary and tertiary institutions
• a school affiliate or auxiliary body such as a school council
• a research foundation or trust.

Assessment criteria

Agencies

Prior to submitting an application to NT Fleet, agencies are responsible for ensuring eligible organisations are assessed against the following criteria:

• intended use of the vehicle
• availability of alternative modes of transportation for the activity or service
• extent of community benefit
• level of current and in-kind support the applicant receives from government sources
• loans of NT Government assets made to the applicant over the past three years
• capacity of the applicant to meet vehicle running, maintenance and insurance costs

NT Fleet

NT Fleet is responsible for ensuring:

• appropriate approvals are provided (personnel with delegation to approve grant funding for their agency)
• sourcing vehicle/s required, as available in the fleet and surplus to agency needs
• appropriate insurance is current on loaned vehicles
• advising the Department of Corporate and Digital Development’s Deputy Chief Executive, Corporate Services, regarding application, loan benefit and balance of the fund to enable decision on the loan application
• sending advice to the eligible organisation, if successful, including conditions of use.