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Hi, I run a 2008 2.4 litre diesel SWB Transit van for work and the reinbursement rate has dropped to 48 cents per km. I do 35000km per year. My van is loaded up with heavy stock so the economy rate is reduced to approx 9.7litres per 100kms. I have purchased your report in the last couple of days on rates but would like to know 1) What you think a fair rate of reinbursement would be and is there another calculation for the higher rate of kms? Or is that just negotiated with employer? Regards Darryl

Hi Daryl,
The report includes a running cost change graph in proportion to the amount of km's travelled, the overall running costs actually reduce with the more km's you travel in a year.
It is an indication and based on information available from a selection of new vehicles for the first 5 years of ownership.
You may wish to use the IRD claim rate of 72c. But ultimately the figure will be a combination of what it actually cost you to run your vehicle and what the employer is willing to accept as a rate.

Hi and thanks for that. Do you know if there is a maximum amount of km's per year that can be claimed as far as IRD is concerned, or is that simply between employer and employee? Regards Darryl Hamilton.

Hi there,
IRD information can be found here: http://www.ird.govt.nz/business-income-tax/expenses/mileage-rates/emp-deductions-allowances-mileage.html