How much money for fuel to ask my employer?

gto21 on 23/07/2016 - 10:07
Last edited 23/07/2016 - 11:07

I need to negotiate fuel money with my employer. I work in Mornington Peninsula. And I have to drive to several suburbs every day. Per week I drive 464.38km for work its about 7 hours driving. What is a reasonable amount to ask to cover fuel cost? and how you do the calculation?

He also said he will pay me normal rate for the 7 hours that I'm driving. If I'm part-time $18 x 7 = $126. And casual: $22 x 7 = $154 per week. Does that sound like a fair deal or i should normally earn more for using my car for work?

Education & Work

Comments

  • RandomNinja on 23/07/2016 - 10:27
    +1

    Rough calcs - Weekly Km driven for work (464.38km), compared against your car's fuel efficiency (eg: if 8L/100km, then you would consume ~37 litres of fuel), multiplied by cost/litre of petrol (eg: @$1.25/L = ~$46).

    If your employer requires you to drive your personal car for work purposes, you may want to negotiate a car allowance to cover additional costs such as wear/tear on the car, higher insurance premiums etc. This could be a fixed sum added to your salary or a per km allowance.

    • gto21 on 23/07/2016 - 10:48
      +1

      He said he will pay me normal rate for the 7 hours that I'm driving. If I'm part-time $18 x 7 = $126. And casual: $22 x 7 = $154 per week.

      Does that sound like a fair deal or i should normally earn more for using my car for work?

      • RandomNinja on 23/07/2016 - 13:00
        +3

        Most employers should cover the proportional running costs of your vehicle if driving is required for you to execute your duties. If you have to cover the running costs of the vehicle, then you are in essence being paid less per hour.

        You may also want to check what insurance cover your employer has, just in case you're involved in an accident whilst driving for work. If not, you will want to negotiate for appropriate cover or the costs to amend your insurance cover to cover some business use.

  • whooah1979 on 23/07/2016 - 10:31
    +1

    And I have to drive to several suburbs every day. Per week I drive 464.38km for work its about 7 hours driving.

    is this travel from your home to the office, first client or between clients?

    • gto21 on 23/07/2016 - 10:54

      I will not get paid from home to work. It's only from the first site until I reach the last site for work.

  • chumlee on 23/07/2016 - 10:57
    +11

    $0.75 per km should cover fuel, wear and tear on you vehicle as well as depreciation

  • whooah1979 on 23/07/2016 - 10:58
    -4

    He also said he will pay me normal rate for the 7 hours that I'm driving. If I'm part-time $18 x 7 = $126. And casual: $22 x 7 = $154. Does that sound like a fair deal or i should normally earn more for using my car for work?

    you're getting paid the award rate to travel between clients. that sounds reasonable enough.

  • oscargamer on 23/07/2016 - 11:18
    +4

    you should be paid for your time AND using your car

    depending on the size of engine, there are standard rates per km

    76c/km rings a bell for some reason (for less than 2.5L maybe?)

    • Euphemistic on 25/07/2016 - 16:06

      This. 464km at 76c/km = $353.

      Running a car costs way more than fuel only. Do that for a year and you'll wear out half your tyres on work travel alone (assume 40,000km/set), require 2 services and rack up lots of kms that will devalue your car more than normal distances.

      If your employer requires you to travel for work they need to pay your time and your car costs.

      • gto21 on 27/07/2016 - 14:05

        True thank you. I just sent him an e-mail with my cost he needs to pay. If he does not agree, it's not worth it for me.

  • stratbargain on 23/07/2016 - 13:04

    Best to speak to your accountant…

    As long as he is paying for the time you're driving as well as working then that is fine.
    You should able to also claim 66 cents per KM driven on your tax. So assuming you drive the same for 48 weeks a year you're looking at a $14,711 tax offset.

    • coin saver on 23/07/2016 - 18:56
      +2

      Thats 66 cents per KM driven of your taxable income not 66c per km paid by the ato.

  • wc on 23/07/2016 - 13:06

    The maximum is 5,000km @ .66 cents you can claim in your tax return

    • Gotchas on 23/07/2016 - 14:22
      +1

      Per car

    • montorola on 23/07/2016 - 15:18

      Do you need logs for this though?

      • tomsco on 23/07/2016 - 16:27

        Not for this method.

      • JIMB0 on 24/07/2016 - 10:53

        You can claim more if you use a log.

    • stratbargain on 23/07/2016 - 16:01

      Good point. Probably best to use the log book method.

  • ChrisLevo on 23/07/2016 - 16:46
    +1

    I get 75c per kilometre.

    My previous employer paid the same.

  • grabngo on 23/07/2016 - 18:08

    ask him to sit on $50 petrol and see if it gets him anywhere.
    He should be paying for your time and costs involved according to the ATO Calculations.
    There are costs in running your car like servicing etc

  • Gershom on 24/07/2016 - 09:06

    There is a formula used by government for staff using their own vehicles. There is a 4 cylinder rate and a 6 cylinder rate. It is worked out to cover fuel & maintenance per km. As a private sector person you could also use the RACV calculation http://www.racv.com.au/wps/wcm/connect/racv/Internet/Primary….

    • gto21 on 24/07/2016 - 18:27

      Thank you. I had a look at the website, it's helpful.

      • Gershom on 25/07/2016 - 04:04

        It's always best to have some science/math/accounting to support any claim, rather than using the EWAG tables. (Estimated Wild Arsed Guess).

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