Milage Rate For Motor Vehicles Increased.The Inland Revenue Department advise that 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.
Rates apply to each income tax year (1 April to 31 March). If you have a non-standard balance date the rate applies from the beginning of your relative income year.
You can use this rate for up to a maximum of 5,000 km of work-related travel per year. For distances greater than 5,000 km, you must keep a record of actual vehicle expenses.
The 73 cents per kilometre rate applies irrespective of engine size or whether your vehicle is powered by a petrol, diesel or hybrid engine. The mileage rate does not apply to motorcycles.
The mileage rates for hybrid and electric vehicles apply from the 2016-17 year onwards. |