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26 June 2015

Car Expense Reimbursement Levels

The Government has announced their intention to apply a flat rate of 66c/km for business travel.  If you reimburse your employees on a cents per kilometre basis for business travel made by them in their own vehicle, you may want to re-evaluate the rate you implement from 1 July 2015.

 

If you are to continue with your higher reimbursement levels, then withholding tax on the excess over 66c/km paid to employees will be required.  The reimbursements will continue to be reportable as an allowance on your employee's group certificates. 

 

Considering this, it will be significantly easier for you to adjust your payroll system now, as opposed to after 1 July 2015.  Obviously communicating the change to those impacted would be advisable!

 

As always we are here to help – please contact us with any queries that may arise.

 

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This Newsletter, of necessity, has dealt with matters of a technical nature in general terms only. Clients should contact us for detailed information on any of the items in the Newsletter. No responsibility for loss occasioned to any person acting or refraining from acting in reliance upon any material in this Newsletter can be accepted by any member or employee of the firm.

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