2017 review of Commissioner's mileage rates

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:

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