End of Lease Procedures

At the end of the lease term leased equipment must be either returned to Alleasing Finance Pty Ltd (“The Lessor”) or another option selected as described below. The University is obliged to advise Alleasing Finance Pty Ltd of its preferred option 3 months prior to the lease end date and to comply with other requirements. This document is intended to assist custodians and managers to meet these obligations.

The end of lease process should be trouble free provided Managers, Supervisors and Custodians endeavour to understand the steps described in this document.

Any questions, issues or suggestions are welcomed, and should be forwarded to

The process comprises 4 steps:-

These are covered below.

Identification of Equipment

Six months prior to end of lease custodians and local finance officer will be advised of the equipment due to be returned by Alleasing through the lease administration unit.

The advice will comprise a list of the items identifying the following:-

  • Equipment make and model
  • Serial number
  • Asset tag number
  • Location as recorded in Archibus
  • Lease expiry date
  • Final decision date

Management and custodians will need to locate and identify the listed equipment as soon as possible once the advice has been received. This task may require a search if the equipment has been moved without a corresponding update to the lease records held in Archibus.

Where the original equipment cannot be located the following are the options available to the University:-

  • The Lessor will advise the market value of the equipment and will issue an invoice for this amount, payable by the Responsibility Centre owner, or
  • A substitute item can be returned to the Lessor. This must be of equal of better specification.

Included with the list will be instructions for the steps described below.

Notification of Intentions

The agreement with Alleasing Finance Pty Ltd is for written advice of intentions to be provided 3 months prior to the lease end date. Local custodians and managers will be provided with advanced notice 6 months prior to lease end, thereby providing 3 months in which to make and plan for the decision. Reminders will be issued on a monthly basis.

A decision is required for each asset from the options available, ie:-

  • return the equipment only.
  • return and replace.
  • extend the lease. A cost evaluation between extending and replacing must be considered but extension is generally not recommended.
  • The University may offer to buy from the lessor at current market value. The lessor will then respond with a buyout figure. This is not a guaranteed option.

The following should be considered when making this decision:-

  • Lease extensions are provided on a discounted basis:-
    * First 3 month extension – 75% of standard rental
    * Second 3 month extension – 65% of standard rental
    * Third and fourth 3 month extension – 50% of standard rental.
  • Where the installation date of replacement equipment is uncertain, extend the lease in 3 month increments.
  • Where a beneficial product release is imminent from one of the University’s preferred vendors, extend the lease. For example, a processor or Operating System upgrade.
  • Where the lease end timing could mean teaching and research activities will be inconvenienced, extend the lease.
  • A comparison of lease costs for new equipment may also influence your decision.
  • It is not permitted that the lease be extended beyond a further 12 months.

This decision can be made on a group basis for all items that are expiring for a specific operating unit, or on an item by item basis.

The decision will require approval in accordance with usual delegations of authority.

The decision is then forwarded to the lease administration unit using the form provided. The lease administration unit will then consolidate the advices from each area and advise the lessor of your intentions. Once made, the decision cannot be changed without negotiation with the lessor.

Where no advice is received the lease will be automatically extended for 3 months so as to avoid penalty payments payable to the Lessor.

Where the decision is “replace and return” the replacement machines must be ordered in time for installation prior to the return date. This activity is critical. The rent free period in the first quarter of possession facilitates this. A Sample Timetable demonstrates a return and replace scenario.

The lessor will arrange for collection as described below. Penalties can apply if the equipment is not available on that date. Equipment can be returned earlier that the dates shown by contacting the Lessor to arrange.

Preparation for Return

Prior to expiration of the Vendor Warranty it is strongly recommended that all equipment is checked for necessary repairs which can be undertaken under the warranty. To check on warranty expiration date contact the hardware vendor.

All items received at installation and financed through the lease must be returned. If possible, original CDs should be included. Do not return manuals and other publications.

The components need not be the originals but must of equivalent or better quality. For example, a 15" LCD monitor or a CRT monitor cannot be substituted for a 17" LCD Monitor. A 2.8 MHz Pentium 4 cannot be substituted for a 3.2 MHz machine. A custom built desktop can be substituted for a Dell supplied machine.

All components must work:-

  • the machine must be bootable to the BIOS level
  • mouse and keyboard work
  • Notebook batteries must be capable of holding a charge (and must be charged).

The area will be invoiced by the lessor for the replacement of any non-working components and any damage beyond normal wear and tear.

The agreement declares that "fair wear and tear does not include physical loss, damage or destruction, screen burn or flat batteries necessary for normal working order.”

Ensure the software OS license sticker is still attached to the unit.

The equipment must be prepared for return by:-

Removing all University related files and data.  You may choose to use one of the methods described below:-
 1. Erase hard disks prior to return (preferred action).  Where the machine has files which may contain sensitive information it is strongly recommended that the hard disk be completely erased using a comprehensive erasure tool.  For more information contact the ICT Helpdesk on x16000.

Ensure all required files and data have been transferred first, as this facility erases the hard disk completely and recovery of the data is then not possible by any means. This facility requires the software to be written to CD. A CD is available at no cost from


 Rely in the removal process provided by the Lessor where you are certain the computer contains no sensitive files.  The Lessor has undertaken to erase all data from the hard disks of returned computers.  This is done through an outsourcing arrangement the lessor has in place, and that company has provided oral assurance that their erasing process can be relied upon.   For computers with no sensitive files this arrangement will be adequate.

Removing all University specific labels, for example, the ICT Helpdesk sticker.

Note that the Lessor will invoice the University for damaged, missing or non working equipment other than normal wear and tear. This will be charged to the last known account code for that item of equipment.

It is recommended that an inspection process be used to verify the suitability for return and to document to condition of the machine. A Lease End Inspection Checklist is provided for this purpose.

Packaging for Return

The equipment must be prepared for transport to the lessor’s premises. The equipment is then matched against the original specifications and for damage beyond normal wear and tear.

The Lessor has advised that returning equipment should be packaged for return and recommendations for this are provided below.

The lessor’s logistics provider has advised that equipment need not be packed at all provided that it has been collected and sorted ready for transport. They will carefully pack on pick-up to avoid damage in-transit.

If possible, packing the equipment is preferred to minimise the potential for damage.

Equipment does not need to be packaged in boxes, although this is strongly recommended if boxes are available to minimise damage whilst in transit. Some areas may have re-useable boxes in which replacement machines have been supplied. Smaller items such as notebook computers should always be packaged in boxes.

If boxing is not possible the machines need a minimal level of protection by placing in plastic bags, bubble wrap, plastic wrap, recycled cartons or similar. This is recommended to minimise damage whilst in-transit and resultant disputes.

Refer to Packaging Recommendations for detailed suggestions.

All components of each "bundle" must be packaged together, that is the system unit, monitor, keyboard, mouse etc. It is not satisfactory to send back a box of keyboards.

Ensure that each item is clearly marked with the serial number which matches the listed item. This is especially important of the item is not the original but a substitute.


Collections are currently scheduled four times a year in:-

  • Late March
  • Late June
  • Late September
  • Mid December

The actual date and locations of Lessor pick up points will be advised by the University’s Accountant Leasing prior to each quarterly pick up.

It is the responsibility of the Department/School to ensure that all leased equipment due for collection is transported to their allocated pick up point on time and at the Departments/Schools own cost.

Any problems or delays relating to pickup should be communicated to the Accountant Leasing - Financial Control and Treasury as soon as possible.

If pickup is not achieved by the agreed date the Lessor has the right to levy a penalty charge of the equivalent of two days rent for each day during which the equipment is not returned. Any such penalty charges will be charged to the PeopleSoft account code of a particular leased asset.

A schedule listing leased asset collections will be signed by:-

  • University's Department/School representative when dropped off at allocated pick up point;
  • University's Accountant Leasing representative when accepting items at pick up point; and
  • Lessor’s Carrier when picking up from University premises for transport to Lessor’s premises.