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Takapuna office closure | Takapuna office closure. The Takapuna office is relocating to a new address so will be closed from 22 November 4pm to 26 November 4pm. From 27 November you can find the new office at: 74 Taharoto Road Smales Farm, One NZ Building, Takapuna.

Some services unavailable 23 - 24 November | myIR, gateway services and our self-service phone line will not be available from 3pm Saturday 23 November to 9am Sunday 24 November while we do planned system testing. This will not affect any tax entitlements or payments scheduled during this time.

Use the following rates to calculate the allowable expense for using your vehicle for business purposes for the 2019-2020 income year.

As we rely on third-party information that was delayed due to COVID-19, we were previously unable to provide these rates and advised businesses to use the kilometre rates for the 2018-2019 income year instead.

If you filed your 2020 income tax return using the 2018-2019 income year kilometre rates, you can contact us to request a reassessment of your return that will take into account these finalised kilometre rates.

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Kilometre rates for the 2018-2019 income year

Using the Tier 1 and Tier 2 rates

The Tier 1 rate is a combination of your vehicle's fixed and running costs. Use the Tier 1 rate for the business portion of the first 14,000 kilometres travelled by the vehicle in a year. This includes private use travel.

The Tier 2 rate is for running costs only. Use the Tier 2 rate for the business portion of any travel over 14,000 kilometres in a year. 

Using Tier 1 and 2 rates for employee reimbursement

If you're an employer, you can use Tier 1 and Tier 2 kilometre rates to get a reasonable estimate of costs. These will help when reimbursing an employee who has business-related use of the vehicle.

Your employee will need a record showing their business-related use of the vehicle over the income year, such as a logbook. You then use it to calculate the exempt portion of reimbursement using the kilometre rates we've set. For example, use the Tier 1 rate for the business portion of the first 14,000 kilometres (total) travelled by the vehicle in the income year, and then the Tier 2 rates after that.

Vehicle type Tier 1 rate per km Tier 2 rate per km
Petrol or diesel 82 cents 28 cents
Petrol hybrid 82 cents 17 cents
Electric 82 cents 9 cents
Last updated: 09 Jun 2021
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