Car allowances, car hire, $ kilometer, etc

[brett-au]

Hi

At the negotiating table in front of me there is talk about a car allowance. Previously I had a great deal where any time I needed to visit a customer, I'd just go to Hertz/Avis/et al and hire a car. Then I would submit fuel + hire costs and get reimbursed. This worked well because I use to travel interstate a fair bit. Now the game has changed and it looks like there is a fixed amount per year for a car allowance. Has anyone got any previous experience in how to work out a fair amount?

If the figure was say $7400 a year, that equates to 10,000km at 74c/km. At a 48 week year thats 200km a week.

Can you have a car allowance and also catch a taxi into the city or would that be considered double dipping?

Any suggestions, thoughts welcome.

Edit: Bah, kilometre silly US web browser.

 

[Mwenenzi]

You need to discuss with a tax accountant and not with frequent flyers

 

[Hvr]

You need to discuss with a tax accountant and not with frequent flyers

Exactly what Mwenenzi said.

Sounds like you're being given a travel budget that can be expended on car travel rather than reimbursement for actual expenses. Which of course inevitably means less money from the company and more is expected from your own pocket.

 

[markis10]

What is the car allowance for, is it for normal duties at the office versus interstate /county travel, as usually the two are treated separately. Market rates vary for car allowances but around $12K would be about average if you are expected to use your vehicle for work. You do need to talk to a tax expert about the most tax advantage way of using that re log books etc, however do make sure you ask them about renting as well, as its very tax advantageous and low doc. You should be able to rent a car for $200 for each 5 days of the working week, and of course you dont need one for holidays etc for work and no maintence is required either let alone insurance rego etc so it can be quite cost effective.

My car hire for work this year has resulted in enough points for four business class trips to Hong Kong (have to pay $400 fuel fines etc each time), so don't forget the points!