Rise in mileage rates

Employers will be shelling out slightly more in mileage payments to their staff in the 2017 financial year.

Mileage rates for both petrol and diesel fuel vehicles have been increased by Inland Revenue (IRD) to 73 cents per kilometre, up from 72 cents.

This year IRD has also set mileage rates for hybrid and electric cars.

The rate for a hybrid is 73 cents per km, while for electric it is 81 cents per km.

“Our data shows that although these types of vehicle have lower running costs, these are offset by higher fixed costs,” IRD says.

The mileage rate is reviewed after a tax year ends so the rate reflects the average motor vehicle operating costs for that year.