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My employer is reimbursing for business use according to 2012 AA ,
'Compact' schedule.
i.e. $15.44 per day and 23.6 cents per km.
Why is it that in reality after 4 months of use the total reimbursement for business use equates to only 38 cents per km rather than the indicated 63.9 cents?
Please note I refer to reimbursement income not actual expenditure incurred.
Regards Eric - For Daughter
I'm not sure where the $x amount per day plus a km rate comes from. The 2013/14 AA rate for a compact car (at 3rd year of age) is 64.2c per km (2012/13 rate was 63.9).
However, we always stress two things;
1) The running cost rate is for a car at the 3rd year ol age where depreciation is the biggest component. An older car will be significantly less.
2) Although we calculate these rates, any agreement between employer and employee is by negotiation between the parties, so can be whatever is agreed upon.