Mileage rate for motor vehicles increased
For the 2017 tax year (1 April 2016 to 31 March 2017), the mileage rate for both petrol and diesel fuel vehicles has increased to 73 cents per km.
This year we are also able to set mileage rates for hybrid and electric cars. The mileage rates for these vehicles are:
- hybrid - 73 cents per km
- electric - 81 cents per km.
For both Hybrid and Electric vehicles, our data shows that although these types of vehicle have lower running costs, these are offset by higher fixed costs.
If you're an employer you can use the above rates when reimbursing employees for the use of their private vehicle for work-travel for the current tax year (1 April 2017 to 31 March 2018).
The mileage rate is reviewed after a tax year ends so the rate reflects the average motor vehicle operating costs for that year. If you've filed your 2017 income tax return using the 2016 rate of 72 cents per km, you can request an amendment.
If the mileage rate doesn't reflect your actual costs, or your work-travel is more than 5,000km per year, you must keep a record of your actual vehicle expenses.
For more information about mileage rates go to http://www.ird.govt.nz/technical-tax/op-statements/os-review-mileage-rate-2017.html