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Company Motor Vehicle Policy

The Company Motor Vehicle Policy outlines to employees the responsibilities involved in using a company motor vehicle.

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Last updated December 19, 2024

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Under 10 minutes

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Suitable for Australia

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Written by

Edwin Montoya Zorrilla

Reviewed by

Damin Murdock

Document Overview

This policy will ensure that employees understand their responsibilities when using company motor vehicles.

It is important to note that this policy should be tailored to the specific needs of the company. For example, if the company operates through the NDIS, there may be additional requirements for the use of company vehicles.

To ensure that this policy is effective, it is important to communicate the policy clearly to employees. This may include training sessions, company reminders via email, and regular reviews of the policy to ensure that it remains up-to-date and relevant.

What are the benefits of having a Company Motor Vehicle Policy?

  • It helps to protect the company's assets by outlining clear guidelines for the appropriate use of company motor vehicles.

  • It helps to establish accountability among employees. By outlining clear guidelines for the appropriate use of company motor vehicles, employees are made aware of the consequences of violating company policies.

What does this Company Motor Vehicle Policy cover?

  • Purpose and application

  • Obligations of employees

  • Return of and damage to vehicles

  • Fuel allowances

  • Variations

The Legal Risk Score of a Company Motor Vehicle Policy Template

Our legal team have marked this document as low risk considering:

  • There is a risk of personal financial liability for employees, as they may be required to reimburse the company for any damage to vehicles resulting from their misconduct, criminal activity, or negligence.
  • Employees are solely responsible for managing and reporting any tax implications associated with the use of company motor vehicles, which could lead to potential financial or legal issues if not handled correctly.
  • The policy allows the company to unilaterally modify, replace, or terminate the terms at any time, which could introduce unpredictability and instability for the employees relying on this policy.
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Company Motor Vehicle Policy Checklist

Complete your free Company Motor Vehicle Policy with our checklist

Ensure Compliance with Vehicle Use Guidelines

Employees should familiarize themselves with and adhere strictly to the guidelines for using company motor vehicles, ensuring that the vehicles are used only for work duties and maintained properly.

Maintain Accurate Records

Keep detailed and accurate records of all vehicle-related documents, receipts, and logs as required by the company and applicable laws, to ensure compliance and readiness for audits or reviews.

Report Changes Promptly

Immediately notify the company of any significant changes such as loss of driving license or vehicle damage, to maintain transparency and address issues without delay.

Review Tax Obligations

Consult with a tax professional to understand and fulfill any tax responsibilities associated with the use of company motor vehicles, including potential liabilities for fringe benefits tax.

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