0.62c /km

[snwtoy]

Hi all

Just wondering about this.

I've started a new job where I need to use my own car quite often to travel around, and the reimbursement is 0.62c per km.

I'd like to know first of all if this is actually a figure set by law somewhere, or if it's something employers can make up themselves?

Secondly how is this broken down/calculated?

Thirdly, if it is not a figure generated by law somewhere, is there anyone out there recieving more or less per km?

[flygt4]

there is a standard set by some government department somewhere i believe, for businesses to use as a guideline.

i think the company i work for gives ~70c per km, but its very rare to use your own vehicles.

either way you lose by the time you include the cost of additional tyre/engine wear and depreciation from higher km's etc.

[Bling]

so is that like 100km just to get 62c? or is it 62c per km including fuel or ?

[Urban-Cruiser]

I think its up to the employer. Know people who get 30c, and some 50c, while others get 70c.

[scotty_ish]

Up to the employer.
I get 49c/km

[snwtoy]

Hrmmmm

I've found this:
http://www.ird.govt.nz/business-income- ... age-rates/

It says that employers can basically do what they like, but there are recommended rates.

I would imagine my employer is using the recommended rate rather than something they've calculated themselves.

Thing is, I'm fairly certain that 0.62/km hasn't changed since petrol was $1 per litre, which is pretty ratsh!t.

I'd like to see a breakdown of vehicle ownership costs etc to know how it's calculated. Doesn't seem like enough by quite a long way.

[Bling]

what you do then is buy yourself the most economical car out there, say a fwd starlet, and use it JUST for work, that way the tyres are cheap, mileage doesn't matter as its a cheap car to start with and you won't use as much fuel as ya normal car.

could be a good investment anyway if you think you'll be there a while / use the car a bit. Then when its not needed you can sell it for the same price you paid

[snwtoy]

hmmm - say i do 5000km a year for work

tyres - 40,000km - $1000. 5000km = $125
petrol - 98 octane - 2.20/litre. 8km/litre. 5000/8=625 625*2.20 = 1375
oil - 5,000km - $50
coolant - 5,000km - $20
rego - $220
wof - $100

= 1890
= 38c/km

Not taking into account depreciation of the vehicle due to mileage, or any other servicing, doing everything myself.

If I was to buy another car I'd be looking at $1k minimum for something reliable, plus doubling up on rego,wof, insurance costs as I would have two cars.

[tsoob]

hmmm - say i do 5000km a year for work

tyres - 40,000km - $1000. 5000km = $125
petrol - 98 octane - 2.20/litre. 8km/litre. 5000/8=625 625*2.20 = 1375
oil - 5,000km - $50
coolant - 5,000km - $20
rego - $220
wof - $100

= 1890
= 38c/km

Not taking into account depreciation of the vehicle due to mileage, or any other servicing, doing everything myself.

If I was to buy another car I'd be looking at $1k minimum for something reliable, plus doubling up on rego,wof, insurance costs as I would have two cars.

Tell him you want a company car

[Brick]

Would rego and wof still count though? Seeing as you would still have to have them anyway

[Bling]

5000km a year for work - for a starlet

tyres - 40,000km - $350. 5000km = $45
petrol - 91 octane - 2.12/litre. 14km/litre. 5000/14=357 357*2.12 = $757
oil - 5,000km - $30
coolant - 5,000km - $20
rego - $220
wof - $100

= 1172
= 23c/km

insurance - cheap as for 3rd party.

For the initial outlay of 1000-1500 for a reliable starlet, you'll pay it off within 2 years just from savings.

Just my 2c anyway its too cold to go outside so I happen to have the time to work out the above

[pc]

62c/km sounds like a good deal. You will make far more money than goes into your car to run it, even with today's prices for gas... and as a bonus you are getting paid to drive around in the comfort of your own vehicle.
(assuming your car isn't a $40,000 new vehicle)

[FST4RD]

Reimbursing allowences from your employer are different to using the mileage rates on the IRD website.
Your employer could give you 100% back if you kept all your reciepts for everything if they wanted, but then it starts to fall into things like FBT and what have you....
So I take it your paying for everything like petrol and what have you and then your just handing over the Km's traveled to your employer whose reimbursing you like that?

[snwtoy]

Reimbursing allowences from your employer are different to using the mileage rates on the IRD website.
Your employer could give you 100% back if you kept all your reciepts for everything if they wanted, but then it starts to fall into things like FBT and what have you....

The way I read the website, employers can pay what they want, but can use the rates on the website as a guide.

So I take it your paying for everything like petrol and what have you and then your just handing over the Km's traveled to your employer whose reimbursing you like that?

Yep that's the way it works. I pay for everything and get a set rate per km back.

[FST4RD]

Yeah they can use them as a guide but if they start to pay more then that then they can land up having to stump up for FBT which most don't

[benj]

I get the rate prescribed by the AA for a car of my engine size, which is $1.10 per km. Now I haven't looked up the AA rate for a couple of years, and I'm now driving a 4.6 Litre RangeRover rather than the 2.5 Litre Honda I had when I agreed that rate with my employer, so I should probably check again.

Basically if you're an AA member you can get this annual running cost table from them based on cc rating and how many kms you do annually and they give you a per km rate. The IRD will accept this rate as well, which is good for your employer.

Cheers

Benj

[RunningRich]

My cheap arse employer pays $0.45 a km, and has done for 10 years...

That's why if we go any distance we hire a car, the biggest we can find. Got a Ford Territory last time.

[rallymazda]

when you ring your kms in at the end of the week or whenever just add on 20- 50 more, ups your rate you see, handy if your job involoves different kms each week

[MR2SIK]

geez you guys get it sweet
I get 28c/km, had to travel to blenheim for work over 2 weeks over the summer, in the MR2.... out of the $140 I got for the return trip, about $120 of it was just on gas .. Mind you it wasnt really an economical drive over, my workmate kept egging me on to show him what it could do over the whangamoa saddle he remained rather quiet for the rest of the trip

So the next week I swapped cars with my mum, 1.3L ford laser, Spent about $30-40 on fuel for the trip

So I dont see the issue with the rates you are all getting..

[Alex B]

when you ring your kms in at the end of the week or whenever just add on 20- 50 more, ups your rate you see, handy if your job involoves different kms each week

Ways to loose your job 101?