Local authorities may pay elected members a vehicle kilometre allowance to reimburse costs for travelling by private motor vehicle while on local authority business.
A member’s travel is eligible for the allowance if the member:
However, if a member of a local authority travels from a place where the member permanently or temporarily resides that is outside the local authority area, the member is only eligible for a vehicle-kilometre allowance for eligible travel after the member crosses the boundary of the local authority area.
A local authority may include in their elected members’ expenses and reimbursement policy provision for members to apply an exemption from the restriction placed on their reimbursement of costs.
Exemptions for vehicle and travel allowances
The allowance payable to a member for eligible travel in the determination term is based on vehicle type.
The vehicle kilometre allowance is based on the kilometre rates for self-employed people and employees published by Inland Revenue on its website on 15 May 2023.
The allowance for a petrol or diesel vehicle is 95 cents per kilometre for the first 14,000 kilometres, and 34 cents per kilometre after.
The allowance for a hybrid petrol vehicle is 95 cents per kilometre for the first 14,000 kilometres, and 20 cents per kilometre after.
The allowance for an electric vehicle is 95 cents per kilometre for the first 14,000 kilometres, and 11 cents per kilometre after.