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Operating Cost

Discussion in 'General Motorcycling Discussion' at netrider.net.au started by Rokster, May 31, 2007.

  1. Hi there all,

    So my boss wants me to regularly travel between my regular place of work, and a client's site.. a round trip of around 100kms. He's prepared to reimburse me for the additional cost, but the question is how much is fair.

    Anybody out there have any hints ? Websites like the NRMA's with some information ? Any suggestions ?

    Thanks in advance !

  2. I think the ato website has info on travel re-imbursement rates - but not 100% sure what the go is with motorbikes.. usually there is a cents per km rate...dependant upon the cc's of the vehicle... good starting place if nothing else...
  3. dont forget motorcycle tyres,where at a faster rate then cars, so using any calculator designed for working out vechile allowence on a car will be in actuarate for a bike, a good way to think about it is work out hoow fuel you would use to cover the K's to be travelled and double that price if not more.

    what you have to take into conciderations is that if your bike is insured for private use, but your using it for work, the insurance company has the right to forefeit cover, if they find out if you hace a accident
  4. Business use rate allowance for intermittent trips...

    It used to be $0.42/kilometer.

    I think it's more like $0.53 or $0.58 /k now with the raised cost of fuel.

    That's a simple rate for using your vehicle for work purposes: ie. 100k trip = you get at least $42 which is to reimburse you for fuel, tyres, associated servicing costs etc.

    ... because you'd actually us less than $15 of fuel doing that trip.

    You accountant would know the current rate.
  5. From ATO
    Utility trucks, panel vans, large passenger-carrying vehicles and motorcycles
    If you owned, leased or hired (under a hire purchase agreement), one or more of the following vehicles and used them for work purposes, you can claim the costs you incurred relating to this work use (for example, the cost of petrol and oil):

    a utility truck or panel van with a carrying capacity of one tonne or more
    a vehicle with a carrying capacity of nine or more passengers
    a motorcycle.
    You can claim the costs you actually incurred. As these types of vehicles are not considered to be cars you cannot use the ‘cents per kilometre’ method or any other method described at Claiming a deduction for car expenses to calculate your claim.
  6. Your not actually claiming anything fromthe ATO so that rule doesnt apply.
    Your being asked to do extra travel over and above your normal work place to home etc.
    For this your employer has 2 choices
    1. Provide you with transport ie company vehicle etc or cab voucher.
    2 Reimburse you for using your own vehicle, the current rate is $0.64 / KM regardless of what vehicle you use.
  7. Stimpy.. now all I need is a reference for that value, and I'm happy !

    By the way, what's your thoughts on the Boulevarde ? I took the M109 for a test ride this morning... NICE !
  8. mmmmmmm noice!

    When my bike grows up it wants to be an M109

    Seriously I love it. I cant afford one of them at the moment but I'm rapped with the C50, just gotta add some more Bling.

    Ummm I'll have a chat to our IR people an see if I can get you a reference. I just know it off hand as we do it quite a bit here.
  9. Thanks mate ! :)
  10. IANAA... but, the way i thought it worked was:

    - your company pays you a certain amount as an allowance for travel (whether it is cents/km or flat rate)
    - said allowance is subject to income tax
    - when doing your tax return, you claim your vehicle usage as a deduction.

    So, no, you don't need to go by an ATO rate for reimbursement, but you do need to know what it is to work out how much you should ask for the allowance.

  11. +1
  12. Exactly why I posted. Thank me later LOL
  13. we get $17.60 per day for useing our own transport plus $0.58 per km between jobs, or $0.58 per km if futher than 50 km from office
  14. The way I see it is he's getting reimbursed for company travel not getting paid an allowance.

    You cant have it both ways and double dip from the tax office.
    if you want to claim from the tax office as well you'll need to keep log books and in the end you'll lose out.
    IMO getting a $/km rate your way out in front.
    So's the employer, ask him if he'll make a company vehicle available for you, i think not.

    When I'm required to go out to our branches I get paid .64c / km

    As I said I'll try and get some info from our IR guys for you as we do anywhere between 15,000 - 19,000 pays per week across the country I'm sure they'll know the score.
  15. Don't dick around. You are not a benevolent society.

    $1/km flat rate take it or leave it. + your hourly rate.
  16. homecare australia employees get .50c a k.

    everyone else gets 30c. that's fair
  17. Rubish, thats a rip off, based one average 6 cyl car ('coon, dunny door, verada, avalon, etc)
    Fuel $0.14c/k
    Tyres $0.02c/k
    Rego $0.02c/k
    Insurance $0.02c/k
    Servicing $0.04c/k
    Car replacement $0.26c/k (3 years 30% residual)

    thats $0.40c/k based on 25000k a year without even thinking about it, add in alowances for 'incidentals' like flat tyres, windscreen, increased wear, etc and it's easily closer to 56c/k COST, we that add 10% for the employees pocket in recognition of them doing the company a favour.

    So we pay $0.62c/k

    and yes i've just done the excersize for a job i'm quoting :p
  18. Ok I've been told ours is an 'award Transport payment' read HERE
    Are you covered by an award? If not then you either need to go by what the ATO says as per 2wheelsagains post or just come to an arrangement with your boss.
    All in all I think $0.60 - $0.65 per Klm is reasonable considering what your boss will save not providing you with the transport.
  19. My company pays $0.63/Km plus travel time at the hourly rate or overtime rate if it is after hours travel.
    Sounds like a fair amount, although with the petrol going up, i think we need to start getting more lol

  20. they don't corner too well !