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JSPCOM13
By JSPCOM13 | AA Member | 2 Posts | 15 January 2014 at 4:18pm

Hi guys, two questions if I may, as I try to compare the AA and IRD "Mileage rate for self-employed people".

Firstly then, are you please able to provide Fuel and running costs figures for this model car?

Secondly, while I think the AA's rate is for "everything" (even including depreciation), do you happen to know if the IRD rate (77c per km) specifically includes A) vehicle registration costs and insurance? and B) parking costs?

Thanks for your assistance on these queries. . .

Regards from JSP (Stephen) McLeary

Anon
By Donavan | AA Expert | 1049 Posts | 15 January 2014 at 4:52pm

The AA Running costs includes vehicle relicensing and insurance but it doesn't include parking costs. The AA Running costs for a 3.0L petrol vehicle is 78.8 cents per km but this is calculated for vehicles 2 - 5 years of age. Realistically you vehicle’s running costs will be a lot less as depreciation is a big component of the running costs.

IRD uses the AA Running costs as a guideline but only the IRD will know how they came to the 0.77 cents per km figure. The 0.77c/km is the claimable amount IRD allow for up to a maximum of 5,000 km of work-related travel per year. For distances greater than 5,000 km you need to keep a log book to record the actual vehicle expenses.

Co-incidentally the IRD rate is the average of the AA running costs.

JSPCOM13
By JSPCOM13 | AA Member | 2 Posts | 15 January 2014 at 5:30pm

Hey Donavan, thanks so much for your fast reply and I'm certainly gaining a more clear picture now.

Are you aware though whether or not the IRD figure ALSO includes vehicle relicensing and insurance?

Cheers and regards from Stephen

Anon
By Donavan | AA Expert | 1049 Posts | 16 January 2014 at 9:00am

Yes, it includes relicensing and insurance.