1. Cars home
  2. Fuel & economy

Ask an expert

alicat71
By alicat71 | AA Member | 1 Post | 29 January 2019 at 5:03pm

will the running cost reports show me a higher figure than the IRD rate of .76c. I use my car for work and do around 18,000km a year, but I dont think the IRD rate takes into account depreciation and R&M, I wondered if this report would justify an increase of my annual motor vehicle allowance of $12K

Anon
By Cade | AA Expert | 3937 Posts | 30 January 2019 at 8:34am

Hi there,
it does depend on the vehicle you have, the IRD rate is actually an average taken from our reports on an annual basis.
Our report is categorised by engine size and information obtained (including depreciation) for new vehicles up to 5 years old and travelling a distance of 14,000km a year.
The information provided may be used as a guideline for older vehicles outside this range, or the IRD rate of 76c/km is often used.
The new report and subsequently IRD rate (following later) is released around March/April and will reflect last years fuel price average amounts.