Lead Schools reimburse RTLB for any own-car, work-related travel from the RTLB Travel Grant funding. RTLB are not reimbursed for travel from home to normal office/base or vice versa.
When boards reimburse own-car travel, they use the motor vehicle rate specified in the relevant teachers’ collective agreements. Collective agreements are 'actual rate' documents in terms of Section 75 of the State Sector Act 1988.
The rates are intended to cover all vehicle running costs such as car insurance, registration, warrants of fitness and servicing.
Leasing or purchasing vehicles
Clusters may lease or purchase vehicles to reduce the wear and tear on personal vehicles or to make the most efficient use of funding.
Private use of lease or cluster-owned vehicles will generate fringe benefit tax. The lead school must manage tax liabilities where lease or cluster-owned vehicles are used for non-work purposes.
Visit the Ministry website for Financial Information for Schools Handbook (FISH), Chapter 3.8 Tax.
Insurance for private cars used for cluster work
Clusters should note some insurance companies will not accept claims under personal insurance policies where the car is being used as a 'tool of trade'. RTLB should be advised to insure private vehicles so that they are covered in the event of an accident.
Content last updated: March 2017