Mileage Rate for Motor Vehicle Expenditure
Inland Revenue has released a Commissioner’s Statement relating to expenditure incurred for the business use of a motor vehicle.
A self employed person may use the three methods to calculate the proportion of business use of a motor vehicle, namely:
- actual records;
- logbook; or
- mileage rate
The mileage rate applies to:
- self employed taxpayers;
- up to a maximum of 5,000 kilometres of work-related travel each year;
- motor vehicles irrespective of engine size whether they are powered by petrol or diesel;
The mileage rate does not apply to motorcycles.
The mileage rate set by the statement for motor vehicles is 70 cents per kilometre.
The mileage rate applies from the 2008/2009 income year.
Source: Tax Information Bulletin Vol 21, No 3, May 2009