Auto Mileage Tracker

Mileage Logbook is an automatic mileage tracker that frees you from the headache of manually keeping mileage logs.

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Mileage Tracker

2023-24 mileage rates in New Zealand

In New Zealand, the Inland Revenue Department (IRD) has set the following mileage rates for the tax year 2023-24:

  1. Vehicle type: Petrol or diesel
    • Tier 1 rate per km: 95 cents
    • Tier 2 rate per km: 34 cents
  2. Vehicle type: Petrol hybrid
    • Tier 1 rate per km: 95 cents
    • Tier 2 rate per km: 20 cents
  3. Vehicle type: Electric
    • Tier 1 rate per km: 95 cents
    • Tier 2 rate per km: 11 cents

These rates are used to calculate mileage reimbursement or deduction for business-related travel. The Tier 1 rate covers the combined fixed and running costs for the first 14,000 kilometers traveled, including private use travel. The Tier 2 rate is for running costs only and applies to any travel over 14,000 kilometers in a year.

Calculation of reimbursement or deduction

To understand how the calculation works, consider the following example: Suppose you have traveled a total of 1,000 kilometers for business-related purposes during the tax year.

For Tier 1 rates, if your vehicle is petrol or diesel, the rate is 95 cents per kilometer. If your vehicle is a petrol hybrid or electric, the rate is also 95 cents per kilometer.

For Tier 2 rates, if your vehicle is petrol or diesel, the rate is 34 cents per kilometer. If your vehicle is a petrol hybrid, the rate is 20 cents per kilometer, and for an electric vehicle, the rate is 10 cents per kilometer.

By applying the appropriate rate per kilometer based on your vehicle type, your eligible reimbursement or deduction can be calculated as follows:

  1. For Tier 1 rate:
    • Petrol or diesel: $950 (1,000 km x $0.95)
    • Petrol hybrid or electric: $950 (1,000 km x $0.95)
  2. For Tier 2 rate:
    • Petrol or diesel: $340 (1,000 km x $0.34)
    • Petrol hybrid: $200 (1,000 km x $0.20)
    • Electric: $110 (1,000 km x $0.11)

Please note that these calculations are based on the provided rates by the Inland Revenue Department (IRD) and the assumption of 1,000 kilometers traveled for business-related purposes. Actual reimbursement or deduction amounts may vary depending on your specific situation and the total kilometers traveled.

Record-Keeping and documentation

Remember, maintaining accurate records and documentation is essential when claiming mileage reimbursement or deductions. This includes keeping track of your business-related mileage, documenting the purpose of each trip, and retaining receipts for any additional expenses such as parking fees or tolls.

By understanding the mileage rates and guidelines set by the IRD, you can effectively navigate the process of claiming mileage reimbursement or deductions in the 2023-24 tax year. Should you require further assistance or have specific questions related to your circumstances, consider consulting a tax professional or contacting the IRD directly for personalized guidance.

Legal, Tax, and Accounting Advice

The material on this page is provided for informational purposes only and should not be considered as legal, tax, or accounting advice. For any legal or tax questions related to this content or specific issues, it is recommended to seek guidance from a professional legal, tax, or accounting advisor.

Does the app support IRD mileage rates?

Yes, Mileage Logbook fully supports IRD mileage rates for business-related travel in New Zealand. The app is designed to help you accurately track and calculate your mileage expenses based on the latest IRD rates. The app allows you to easily input your mileage and apply the appropriate rates.