On 14 December 2020 the Inland Revenue Department announced the new kilometre rate for the 2020 financial year for the business use of vehicles. Tier 1 goes up to $0.82 per kilometre, tier 2 is reduced to $0.28 per kilometre for petrol and diesel vehicles and $0.17 per kilometre for hybrids.
The rate for electric vehicles remains unchanged at $0.09 per kilometre.
If the 2020 tax return has been filed and a taypayer wishes to adjust the rates, an application can be made to Inland Revenue for a re-assessment.
Source: Tax-e-mail, Issue 2101, Small Business Institute
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