Kilometre Rate

Kilometre Rate

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

Unfortunately, with details changing all the time and at such speed, we need to add that the above content is correct at the time of writing as far as the author is aware and is very much subject to change. We have, to the best of our ability, acknowledged any shared content. All related links provided to the corresponding websites are subject to change as they are live links.