Vehicle provision and mileage allowances
Elected members are able to claim compensation for using private vehicles on council business. In making its decisions on vehicle allowances, the Authority uses the IRD mileage rate.
Elected members can receive 73 cents per kilometre allowance for the first 10,000 kilometres travelled on council business, and 37 cents per kilometre for any remaining council travel. Electric vehicles will be reimbursed for the first 10,000 kilometres at a rate of 81 cents per kilometre and thereafter at 37 cents.
Elected members should note that the 10,000 kilometres range is taken from the example used on the IRD website. When the IRD makes a final decision on the allowance for tax purposes, this will be taken into consideration by the Authority and the distance and the reimbursement rate may be altered in the next determination.
Use of other transport modes
The Authority has previously considered and discarded the idea of a mileage allowance for other forms of transport. The Authority is aware that where costs are incurred by self-employed people, these costs can be offset against income in their tax returns. Such ability to offset costs, together with the travel time entitlement, removes any disincentive for other travel preferences created by mileage compensation for the use of motor vehicles.
Long distance meetings
If an elected member is required to attend a long distance conference or meeting, alternative transport arrangements can be made. For example, it may be more economical and/or time efficient for member to fly to a destination rather than drive for several hours. Any alternative arrangements would need to be consistent with the council’s overall travel policy.
Vehicle mileage for mayors/regional chairs
Councils decide whether or not a car is to be supplied for the mayor or chair, taking into consideration what is the most cost effective for the council and ratepayers. Vehicle mileage for the use of a private car by the mayor/chair cannot be claimed if a council car is provided.
If the mayor/chair is provided with a vehicle, salary will be reduced to reflect private usage, which is normally assessed at 20%. Where a larger or smaller usage is claimed, supporting information such as a log book will be required.
The Authority will need to be informed whenever a mayor’s or chair’s car changes, or private usage of that car changes substantially. Details of the new car’s cost and details of any substantial changed private usage will need to be provided before the next annual Determination.
The Authority will not, however, adjust the mayor’s or chair’s remuneration unless the change in car or private use is significant enough to warrant a change. Changing a car for a later similar model and make would not normally trigger a remuneration change.
Please use this form to confirm or reconfirm (if required) car provision details.