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HI, I have an employee that uses his 1999 Subaru Legacy for work at times. What should I be paying him to reimburse him for the travel he does for our Company? I feel that the IRD rate of 77cents is too high for an old car. Thanks

It's always hard to determine the exact running cost of a vehicle of this age. The AA's running cost schedule is based on a vehicle at the 3rd year of age and depending on which engine your employee's Subaru has, our calculation is very similar to the IRD rate, but as I said, this is for a newer car where the depreciation is much higher.
It really comes down to a negotiation between you and your employee. At a rough calculation, I'd say this vehicle's true running cost might be around 40c per km, however I'm aware of employee/employer negotiations where a compromise of around 50c per km has been agreed upon.

Thanks very, much very helpful