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Rosco4
By Rosco4 | Community user | 1 Post | 12 July 2013 at 10:41am

Hi, we have an employee due to start who has a 2000 Ford Falcon and would be traveling approx. 40-50,000kms per year. We feel the IRD rate of reimbursement is pretty steep, what rate per km would you recommend?
Many thanks

ABayliss
By ABayliss | AA Expert | 2169 Posts | 12 July 2013 at 11:39am

It is difficult to provide an exact running cost for a vehicle of this age as the biggest component of running a vehicle is the capital outlay and depreciation. A vehicle of this age has already depreciated significantly and the capital value is quite low.
As a guess, the real value of running this vehicle would only be around half the IRD rate of 77c per km, but ultimately it comes down to a negotiation between the employer and employee.