This is something that concerns all of us.

Dr Michael Keane is an anaesthetist in Melbourne who was trying to get an electric car under an FBT-exempt novated lease when he realised that the salary packaging provider at his hospital was providing the lease with an interest rate equivalent to 15 to 17 percents. Meanwhile big four banks were providing the novated lease finance at 8.5 to 8.9 percents. The high interest rate significantly erodes the amount of saving achievable by employees who enter into novated leasing arrangement.

In the course of examining this issue, he became aware that his hospital had an exclusive agreement with a single salary packaging provider. Furthermore, a media reports at the time also referenced allegations from an industry source that a substantial “sign-on fee” up to $3 to 5 million per year was involved in securing that contract.

Seeking further clarity, Dr Keane lodged a Freedom of Information legislation request in January 2024 for access to the relevant contract. While a document was eventually released, significant portions were redacted under S34(1)(b). He is now pursuing further legal avenues to seek access to less redacted material through the Victorian Supreme Court.

To date, as part of his effort, Dr Keane has personally contributed approximately $15.7k toward legal costs. The next stage of proceedings is estimated to require an additional $15,000 - $20,000.

Transparency in contractual arrangements that affect large numbers of employees is a hugely important issue. This is not his personal fight, this is our common fight. If you believe that transparency and accountability in workplace financial arrangements are important, I invite you to consider supporting Dr Keane’s efforts.

News articles:

Pure greed - Government novated lease deal slammed

Staff pay up to 5 million a year