Preferred Lessor – Leasing Information
Leasing facility for information and communication technology (ICT)
equipment available to
Government Schools.
LEASING FACILITY
PREFERRED LESSOR
EQUIGROUP ON BEHALF OF THE
COMMONWEALTH BANK
Contract No: 2014-ITD-CMO-01
CONTACTS:
Equigroup:
Patrick Conway – Senior Channel Manager
equigroup on behalf of The Commonwealth Bank
Tel: 03 8628 2390
Email: vicschools@equigroup.com
Department:
Patrice Millar –
Project Officer
Contract Management Office
Tel: 9637 3032
Email: millar.patrice.c@edumail.vic.gov.au
February 2014
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Preferred Lessor – Leasing Information
Table of Contents
1.
Leasing from the Department’s Preferred Lessor ............................................................................. 3
2.
The Lease or Buy Decision ................................................................................................................ 3
3.
Calculating Indicative Leasing Rental Rates from Preferred Leasing Facility.Error! Bookmark not
defined.
4.
Comparing Leasing Offers ................................................................................................................. 4
5.
Leasing Options From Preferred Leasing Facility ............................................................................. 4
6.
Period of Lease .................................................................................................................................. 4
Insurance............................................................................................................................................ 5
End of Lease Term Obligations ......................................................................................................... 5
How to Arrange a Lease .................................................................................................................... 6
7.
Preferred Lessor Contact Details ....................................................................................................... 7
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Preferred Lessor – Leasing Information
1. LEASING FROM THE DEPARTMENT’S PREFERRED LESSOR
The Department has negotiated a Preferred Leasing Facility with Equigroup on behalf of The
Commonwealth Bank to provide leasing of a wide range of ICT equipment to Victorian Government
schools.
Commonwealth Bank of Australia is the major shareholder in equigroup owning 50% of the share
capital. equigroup provides transactional and asset management services to support the Bank’s
technology equipment lease facilities. equigroup has been appointed by the Bank to:
1. prepare the individual rental schedules for equipment financed under Master Rental
Agreements;
2. act as billing and collection agent during the term of the rental agreement; and
3. manage the return and sale of equipment at end of term.
equigroup is a specialist in the provision of Technology Fleet Management solutions including
Operating Lease/Rental finance - more information on equigroup is available at
http://www.equigroup.com/
Leases and additional optional services are offered at competitive rates.
A School may lease directly from equigroup without having to obtain quotations or call tenders as the
Department has already evaluated tenders and obtained the necessary approvals for leasing under the
Preferred Leasing Facility.
A School is not obliged to use the Preferred Leasing Facility, however, it is strongly
recommended. Schools are requested to carefully compare all aspects of any alternative offers
with the Preferred Lessors offer.
A School may select and order the required equipment from one of the Department’s Preferred
Suppliers or any other supplier. The Department’s Preferred Suppliers of equipment can be accessed
via:
http://www.education.vic.gov.au/management/ictsupportservices/ictproducts/otherproducts.htm
The pricing available from the Department’s preferred suppliers to Schools will reduce rental cost of
leasing for Schools.
2. THE LEASE OR BUY DECISION
Important issues to consider when determining whether to Lease or Buy are included in the table below:
LEASE OR BUY?
Benefit
No major cash payment required. May allow a larger
initial purchase of equipment with repayments spread
over the useful life.
Conserves capital and releases cash for more profitable
investment elsewhere.
Allocation of Capital Budget – Being an operating
expense item, payments may fall outside of Capital
Budget allocations.
Finance the total solution – the cost of Hardware,
Software, Maintenance, Installation, Cabling, Warranty,
Delivery, & Other Services may be included in the
Lease facility.
Technology Exchange Program – allows equipment to
be upgraded during the term of the Lease without
financial penalty.
Buy
Lease
No

No

No

No

No

Lease Agreement may be executed by Authorised
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Preferred Lessor – Leasing Information
personnel – a Principal, Director or Delegate as
appropriate.

No
Indicative Leasing quotes can be obtained using the contact details below –
Dedicated Victoria Government Schools telephone – 03 8628 2390
OR
email - vicschools@equigroup.com
* When emailing a request for a quote please include a copy of the supplier (s) quote and the term you would
like to finance the equipment over.
The quoted lease payments exclude GST. GST will be added to each rental payment and included
within the Rent Notice. Rent Notices will remain valid for a period of 14 days.
Note: lease rates will vary according to the then current Benchmark Funding Rate. Benchmark
Funding Rate" means the rate, expressed as a percentage per annum, for a three (3) year swap,
published on www.AFMA.com.au from time to time under the heading Swap Rates: Quarterly in arrears
versus mean Bank Bill AFMA Interest Rate Swaps – 10AM – MID.
Note that the total purchase price of equipment financed under any one lease arrangement must
exceed $5,000 ex-GST. Please call equigroup if you have a requirement that does not meet this
amount.
The procedures for leasing equipment are explained below in Section 6 How to Arrange a Lease.
3. COMPARING LEASING OFFERS
Various types of lease or hire purchase arrangements are offered in the market generally. Schools
should be aware that the Education Regulations (Division 6, 8.27 and following) preclude schools from
entering into Hire Purchase or like agreements. The Preferred Leasing Facility satisfies the Department
of Education Regulations.
When comparing operating lease or like arrangements, a School should examine key aspects of the
contract beyond just the rentals for the initial lease period.
Key points to address include:

Are there any establishment charges, interim rentals or on-going administration charges in addition
to the periodic rental payments? There are none in the Preferred Leasing Facility.

What are the options costs for replacing or upgrading the equipment during the lease? A school
may wish to add or replace items of equipment and possibly extend the period of the lease. The
cost of such a variation of a lease can vary significantly between leasing deals. The lease
variations offered by the Preferred Leasing Facility are fair.

What are the options for renting beyond the initial term of the lease? Circumstances may well
require a school to extend the rental of the equipment before being able to replace it. Extended
rental costs can vary significantly between leasing deals. The extension rentals offered by the
Preferred Leasing Facility are fair.

Are there any strict timing conditions with respect to the giving of notice or the return of equipment
that might force a school into an extension rental for an unreasonably long period and/or at an
unreasonable cost? Such conditions of the Preferred Leasing Facility are reasonable.
4. LEASING OPTIONS FROM PREFERRED LEASING FACILITY
Period of Lease
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Preferred Lessor – Leasing Information
A School, may select a lease period from two to five years. Note: A School must obtain the approval of
its Regional General Manager to enter into any lease for a period greater than 4 years. Other periods
are available from equigroup.
The School may choose the rental payment frequency, ie: either monthly or quarterly, payment in
advance or in arrears. (note that if the payment frequency selected is in advance, you may be required
to provide paymentfor the first rental payment when signing the lease documents) You may also select
‘non-standard’ payment options – please contact equigroup to discuss. Rentals may be paid via Direct
Debit, Cheque or Periodical Payment Authority.
Typically, ICT equipment is leased by schools over a term of three years and should be the same as
the warranty period on the equipment which is generally three (3) years. Extended warranty, either
from the supplier or equigroup will provide flexibility if the Schools requires use of the equipment for a
longer term.
Schedule of Rates and Charges
"Rental Interest Rate” means the effective interest rate derived from the Benchmark Funding Rate plus the Margin and used to
calculate Rental.
Benchmark Funding Rate" means the rate, expressed as a percentage per annum, for a three (3) year swap, published on the
http://www.afma.com.au/data/home.html from time to time under the heading Swap Rates: Quarterly in arrears versus mean Bank
Bill AFMA Interest Rate Swaps – 10AM – MID
Discounts
Discount Offered and Condition Applicable
TheAssetAdvantage Enterprise Version will be provided to the Department at no cost with a discounted
price available for schools who choose to use the Enterprise Version.
Collections of large asset volumes of +200 items will be eligible for a discount of the listed Services Cost.
Taxes and Duties
Taxes and Duties
All rental payments and any additional service charges contracted by the schools will be exclusive of GST.
All rental notices and invoices will clearly separately identify the GST component.
Insurance
The quoted rates for the Preferred Leasing Facility exclude Insurance.
The Department does not insure leased equipment under the SEIS and Schools are obliged by the
Education Regulations to obtain insurance for such equipment.
Upon request by the School, equigroup may, (but is not required to) arrange for the insurance of the
leased equipment on behalf of a School. The cost of insurance will be assessed on a case-by-case
basis with regard to the nature of the equipment and the term of the lease.
When arranged by equigroup, the cost of insurance will be included within the lease.
End of Lease Term Obligations
At maturity of the lease, you will have three options:
a) Extend the lease on a fixed or casual basis.
b) Purchase the equipment at a fair market value.
c) Return the equipment to equigroup.
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Preferred Lessor – Leasing Information
If you do not return the equipment at maturity, or retain the equipment through a lease extension, then
the lease will continue until the equipment is returned or the lease is terminated. In this event, you must
continue to pay rental.
a) Lease Extension Options
At the end of the initial lease period, the lease term may be extended. The extended rental cost will be
quoted by equigroup based on pre-determined rates as negotiated with the Department.
Other extension options are available and will be quoted by equigroup on request.
b) Purchase of equipment.
At the end of the initial lease period, a School may choose to purchase the equipment outright. The
purchase price will represent a fair market value at the time subject to the type of equipment, supplier
etc.
c) Return equipment to Equigroup.
At the maturity of a lease, you will be required to return the equipment to equigroup at a ‘Return Depot’
located in Carrum Downs or major Rural centres (such as Geelong, Ballarat, Bendigo, Melton, Mildura,
Warrnambool, Sunbury, Wangaratta and Horsham). Additional remote and rural locations will be made
available on request. You must give at least 30 days notice of your intention to return the equipment
and you will be responsible for the cost of returning the equipment, unless you have selected the
collection costs, or the Schools Package, at the time of entering into and signing the lease
documentation.
Equipment is to be returned subject to normal “fair wear & tear”. Where equipment is returned to
equigroup in good working order (fair wear and tear), you will have no further obligation.
Where equipment is returned and a substantial defect is noted (for example cracked screen, lower
configuration, components removed or not returned, missing operating system license, equipment not
in working order, willful damage etc) you will be liable for payment of the lesser of repair or fair market
value. equigroup offer a package for Schools which includes a cosmetic damage waiver and other
services as part of the rental, please speak to equigroup if this is of interest.
You must maintain the equipment and keep it in good working order. We would encourage Schools to
arrange for damaged equipment to be repaired under existing Warranty or Insurance arrangements
prior to return to reduce the potential of incurring additional costs.
5. HOW TO ARRANGE A LEASE
1.
A School, (the lessee) determines the equipment it wishes to purchase and obtains a quotation
from the equipment supplier.
2.
The lessee determines the leasing options that it requires and obtains a quotation from equigroup
(the lessor). The options should include the lease cost, any insurance and additional services,
such as installation, decommissioning, disk wiping, collection costs, etc.
3.
The lessee orders the equipment from the supplier, following the usual procedure for ordering
from a Preferred Supplier, and states in the order that the equipment is to be leased from
equigroup.
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Preferred Lessor – Leasing Information
The Invoice for the equipment purchase price must be addressed as follows:
Bill to:
Ship to:
Commonwealth Bank of Australia
[School Name]
ABN 48123123124
[School Address]
L8 101 George Street
Parramatta NSW 2150
The invoice is to include a full description of the equipment including all hardware components,
detailed specifications, operating system software and serial numbers if available (serial numbers
may be provided upon delivery).
If obtaining the equipment from a supplier other than a Preferred Supplier, the lessee must
ensure that the supplier will deal contractually with the lessee and lessor such that the lessee can
obtain the benefit of all express or implied warranties arising out of the sale to the lessor. In
addition, the lessee must confirm that the supplier is acceptable to the Lessor and obtain lease
pricing from the lessor.
4.
The lessee arranges with the supplier for delivery and installation of the equipment. This is an
optional service that equigroup can also provide.
5.
Upon delivery, the lessee examines the equipment and satisfies itself that the equipment
complies with its description, is fit for purpose and comes with valid title and warranties.
6.
The lessee requests a Rental Schedule from the lessor by providing the supplier invoices to be
financed and any changes to agreed leasing options it requires. Supplier invoices can also be
sent directly to equigroup by the supplier.
7.
The lessor will send the lessee a Rental Schedule,
8.
The lessee sends the lessor the Rental Schedule signed by its authorised officer (School Principal or Delegate).

Where Insurance is not purchased from equigroup and the equipment value exceeds
$100,000, confirmation of Insurance noting the lessor’s interest in the equipment.
9.
The lessor will pay the supplier within five business days of receiving the documents specified in
point 8 (above) and the lease period will begin on the date of payment. If lease payments are “in
Advance” the lessor will issue an invoice for the first period rental.
6. PREFERRED LESSOR CONTACT DETAILS
For Leasing Quotes, please contact:The dedicated Victorian Government Schools phone number on: 03 8628 2390
OR
By email at: vicschools@equigroup.com
* When emailing a request for a quote please include a copy of the supplier (s) quote, the term
you would like to finance the equipment over and the repayment frequency – i.e. monthly,
quarterly.
Account Enquiries & End of Lease enquiries please contact:-
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Preferred Lessor – Leasing Information
Account queries
The dedicated Victorian Government Schools phone number on: 03 8628 2390
OR
By email at: vicschools@equigroup.com
End of lease queries please email assetmanagement@equigroup.com
OR
call the dedicated Victorian Government Schools phone number on: 03 8628 2390
February 2014
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