Travel Expenses Reviewed

(photo caption: Clearing out the old to make way for the new!)

A recent review of travel expenses for Crown employees has been conducted. The findings of the review has recommended a downward shift in the milage allowance payable. This downward shift has seen 9c removed from the top rate now payable at 75c a kilometre and an increase in the rate for smaller cars increaseing from 57.5c to 63c a kilometre.

The Premiers office say the changes are required to bring the payment in line with the rates declared by the Taxation Office.

I beleive this downsizing of the allowance to be a good move, as there is a more incentive for crown employees ( includes Councillors) to drive smaller cars- the previous top rate of 86.2 c per kilometre provided no incentive at all.

Smaller more fuel efficeint cars on the road will help to reduce transport CO2 emissions.

I am looking forward to 2010 when the first commercially available full electric cars are supposed to be introduced on the Australian market. I wonder how the tax department will deal with travel allowance then!