Agreement Car Allowance With Mileage Substantiation
Description
How to fill out Employment Agreement - Executive With Car Allowance?
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FAQ
2021 Average Car Allowance The average car allowance in 2021 is $575. And, believe it or not, the average car allowance in 2020 was also $575.
What is car allowance? It's a sum of money you add to the employee's annual salary for the purpose of allowing them to buy or lease a vehicle. The staff member will have to source and buy the vehicle by themselves. They're also responsible for maintaining and insuring the car, as well as monitoring expenses.
How Much Should A Car Allowance Be Australia? Using an agreed on price, the rate for the 202021 budget period is 72 cents per kilometer as of July 2020. For 2018-2019, we're looking at 67 cents per kilometer (P/K).
It's calculated by dividing the value/purchase price of the car in multiples of R 85 000 (this changes almost every year). So let's say the employee's car cost R 100 000 - the fixed cost would be R 50 924, fuel R 1.018 per km and the maintenance R 0.412 per km.
If you are paid a car allowance, your employer may reimburse you at a lower mileage rate or not at all. If this is the case, you will be able to claim Mileage Allowance Relief (MAR).