Information Leaflet

Travelling Allowance Rates

The Inland Revenue Departments (IRD) has an operational statement that relates to the tax-exempt portion of an amount paid to a Presbyter, an employee or other person. It is simply a way to calculate the reimbursement rates of expenditure incurred by the Presbyter, employee, or other person where that person uses their private motor vehicle for Church related travel.

Please note that in nearly all cases (there are limited exemptions to this general rule), travel between your home and place of work is considered private use and therefore the information set out here does not relate to that travel.

The IRD operational statement is reviewed from time to time. The contents of this part of the Information Leaflet have been updated to the current operational statement (OS 19/04B).

All references to “motor vehicles” and “vehicles” are referring to motor cars, vans, and tray-back vehicles such as coupe utilities no matter what capacity or engine size. The rates do not apply to motorcycles or scooters (petrol or electric).

It should be noted that by paying the reimbursement rates provided in this Information Leaflet, the IRD has confirmed that the amounts are tax free in the hands of the Presbyter, employee or person being reimbursed and meet the requirements of Section CW 17(3) of the Income Tax Act.

The kilometre rates are set by the Commissioner by reference to industry figures that represent the average cost of operating a motor vehicle. The various rates for selected vehicle types are made up of two tiers.

The Tier One rate is a combination of the vehicle’s fixed and running costs. The Tier One rate (orange column of the tables below) applies for the Church related portion of the first 14,000 kilometres travelled by the motor vehicle in a year. Beyond that the relevant Tier Two rate (blue column of the table), which is only the running costs, applies for the employment related portion of any travel more than 14,000 kilometres.