The reduction is largely due to a lower average fuel costs during the 2015 income year and to some extent more efficient motor vehicles. The 2015 income year for business taxpayers with a standard 31 March balance date, runs from 1 April 2014 to 31 March 2015.
The Commissioner accepts that employers may use the 2015 vehicle mileage rate as a reasonable estimate of costs when they reimburse employees for the use of their private vehicle for business related travel for a current income year (post 1 April 2015).
Employers may use an alternative estimate other than the Commissioner's vehicle mileage rate when reimbursing employees for use of their private vehicle for employment related use, e.g. the New Zealand Automobile Association Incorporated, as an alternative reasonable estimate for reimbursement of employees.