aa rate of travel per km

What are the AA Rates per KM in South Africa

Several taxpayers are still unsure of how the calculation of the reimbursement for business miles traveled is done, even though the tax filing season is still open until 24 October 2022 for non-provisional taxpayers and until 23 January 2023 for provisional taxpayers.

The term “travel allowance” refers to any payment made to or advance granted to an employee in connection with travel costs for professional purposes.

Essentially, two eventualities are covered by the legislative framework:

• A travel reimbursement is paid to an employee based on actual business travel.
•  In contrast, a travel allowance is given to an employee to finance transportation and is typically a set rate or amount per pay period.

Knowing the differences is crucial because the aforementioned are taxed differently. The updated rate per kilometer for motor vehicles is announced in a Government Gazette each year following the budget address.

Rates per kilometer are calculated using the following table (as published in Government Gazette No. 46015 of March 8, 2022), which may be used to assess the permitted deduction for business travel against an allowance or advance where real costs are not claimed:

AA Rates Per KM

With the streamlined method, a fixed rate per kilometer is used, and the employee is not given any further remuneration from the business (aside from parking or toll payments) in the form of an advance, additional allowance, or reimbursement.

The mandated rate, sometimes referred to as the AA rate per kilometer, is R4.18 for the tax year 2022–2023. The authorized rate of reimbursed travel expenses is not taxed. Regardless of the number of business miles traveled, compensation is included for PAYE purposes if it exceeds the mandated amount of R4.18 per kilometer. Unlike the fixed travel allowance, where only 80% of the amount is due to PAYE, the full inclusion amount is liable to PAYE.

How do I Calculate my Car’s fuel economy?

If you are aware of the distance traveled and the amount of fuel required to cover that distance, calculating your car’s fuel consumption is simple. These are the steps you must take.

• Fill up your petrol tank.
• Note the mileage that is now showing on your odometer. Set the trip odometer on your automobile to zero if it has one.
• Drive your vehicle generally until you require another fill-up.
• Fill the fuel tank when it is empty and keep track of your fuel consumption.
• To find out how far you’ve traveled since your previous fill-up, use your trip odometer. To calculate how far you have traveled without a trip odometer, note the most recent odometer reading and subtract the previous reading.
• Divide the total distance traveled by the total amount of gasoline consumed to find the number of kilometers your automobile can travel on one liter of petrol. Example: 400 km divided by 42 liters equals 9.5 km per liter.
• By multiplying the gasoline consumption by 100 and dividing it by the total number of miles travelled, you can calculate your car’s fuel efficiency (Metric System). For instance, 10.5 liters every 100 kilometers = 42 liters x 100 / 400.

MoneyToday South Africa is a financial website aims to assist consumers with comprehensive information on personal finance, loans, insurance, investment opportunities, financial guides, tips and comparison of a large number of finance and insurance companies on the South African market.

• MoneyToday https://moneytoday.co.za/author/andy/ Is Debt Consolidation a Good Idea or Bad Idea?
• MoneyToday https://moneytoday.co.za/author/andy/ How to Choose the Best Debt Consolidation Loans Company?
• MoneyToday https://moneytoday.co.za/author/andy/ How to Get a Personal Loan in South Africa?
• MoneyToday https://moneytoday.co.za/author/andy/ 7 Smart Ways to Improve Your Credit Score in South Africa

Related Articles

Berry.IM Trading Platform – Is it Legit?

Where to Buy Plus Size Clothing in South Africa

Popular South Africa Clothing Brands

How To Send A Vodacom Please Call Me

FIXING OF RATE PER KILOMETRE IN RESPECT OF MOTOR VEHICLES FOR THE PURPOSES OF SECTION 8(1)(b)(ii) AND (iii) OF THE INCOME TAX ACT, 1962

Prescribed rate per kilometre: 

The prescribed rate per kilometre used for reimbursive travel allowance for 2022/2023 has increased from R3.82 to  R4.18

Vehicle lookup table for the purpose of calculating a travel allowance (deemed cost rate per kilometre on assessment): 

Click here to read the Gazette: Government Gazette 46015

Academy Login

AA Charges Per KM

For au pairs, managing work-related expenses is a crucial aspect of their role, especially when it involves using their own vehicle for tasks like school runs and other child-related activities. Understand AA charges per km.

A key element in this is understanding the AA (Automobile Association) charges per kilometre. These rates, set by the Automobile Association of South Africa, are designed to cover the costs of using a personal vehicle for work purposes. This guide aims to explain the concept of the AA charges per km , providing au pairs with essential information to manage their travel expenses effectively.

AA Charges Per KM?

AA charges per km are standardised rates determined by the Automobile Association of South Africa. These rates are calculated to cover the cost of using your personal vehicle, including fuel, maintenance, insurance, and depreciation, for work-related activities.

For au pairs, these charges are crucial as they often use their vehicles for transporting children to various activities, which is a significant part of their job. Understanding these rates helps ensure that au pairs are fairly compensated for the business use of their personal vehicles.

Importance for Au Pairs

For au pairs, being knowledgeable about AA rates is vital for ensuring fair compensation. These rates provide a guideline for calculating the cost of work-related travel , ensuring that au pairs are not out-of-pocket for performing their duties.

It’s important for au pairs to keep an accurate log of their travel distances to claim the correct amount. This not only helps in maintaining transparency with the family your work for, but also ensures that au pairs are reimbursed adequately for their vehicle use.

Remember: you should NOT be expected to cover the cost of your petrol while driving children around.

Calculating Your Travel Expenses

Calculating travel expenses using AA rates involves keeping a detailed record of the kilometres traveled for work purposes. Au pairs should maintain a logbook, noting the date, destination, purpose, and distance of each trip.

To calculate the total cost, multiply the total kilometres by the current AA rate per km.

For example , if the AA rate is R5 per km and you have traveled 100 km for work-related activities (with the children in your car), your reimbursement for your petrol would be R500.

Negotiating Fair Compensation

Discussing compensation for travel can be challenging, but it’s a necessary conversation.

Au pairs should approach this discussion professionally, armed with accurate records of their travel distances. Presenting a clear calculation based on AA rates can help you have a constructive conversation with the family you work for. It’s important to reach an agreement that is fair and respects both the au pair’s rights and the family’s budget.

Please make sure you discuss this with your family BEFORE you sign your contract, and before you start working.

Staying Updated with AA Rates

AA rates can change , so it’s crucial for au pairs to stay informed about the current rates. These can usually be found on the official Automobile Association of South Africa website or through relevant au pair agencies.

Regularly updating your calculations based on the current rates ensures that petrol reimbursement remains fair and accurate. It’s also advisable to review the travel expense agreement with the family you work for periodically (for example each summer), especially when AA rates change.

Calculate here.

Key Points For Au Pairs

When managing your mileage reimbursement as an au pair, it’s crucial to adhere to these guidelines:

• Non-Reimbursable Travel: Typically, you should not charge the family for kilometres travelled to your workplace from home and vice versa, unless there’s a specific agreement to the contrary, which is quite rare.
• Vehicle-Specific AA Rate: The Automobile Association (AA) rate is tailored to your specific vehicle. To determine the accurate AA rate for your car, you must use the provided link and input your vehicle’s details.
• Variability of AA Rate: Remember, there’s no universal monthly AA rate. It depends entirely on the specifics of your vehicle, including its make, model, and year.
• Daily Mileage Log: It’s essential to maintain a daily log sheet of your mileage. This log is crucial for accurately claiming the distance you’ve travelled for work purposes.
• Family’s Verification Rights: Families are entitled to verify the distances and routes you’ve recorded. If a family requests to check your log sheet or the calculations you’ve made, understand that this is within their rights and a standard practice.
• Route Selection Integrity: Choosing longer routes for the purpose of increasing petrol reimbursement is considered dishonest and could lead to dismissal under the Basic Conditions of Employment Act 66 of 1995. Always select the most efficient route to your destination.
• Documenting Route Deviations: If circumstances necessitate taking a longer route (like avoiding traffic jams or road closures), make sure to document the reason in your log book. This documentation will help justify any deviations from the usual route and prevent misunderstandings.
• Regular Rate Updates: Given the fluctuation in fuel prices, it’s advisable to check your AA rate every three months. If there are changes, promptly inform the family and provide them with the updated AA Rates Certificate, which you can obtain through the aforementioned link.
• Timely Submissions: You should aim to submit your mileage log sheet and the calculated petrol reimbursement to the family on the last working day of each month.
• Prompt Reimbursement by Family: The family is expected to process your petrol reimbursement by no later than the 7th of the following month, giving them a seven-day window from the time you submit your claim.
• Detailed Submission Requirements: When submitting your petrol reimbursement claim, ensure it includes the daily mileage travelled, the daily cost based on your car’s AA rate, the total mileage for the month, and the total cost for the month, calculated using your car’s AA rate.
• Importance of Daily Updates: To avoid any discrepancies, it’s best to update your log sheet daily. This practice ensures that you stay on top of your records and makes calculating your daily mileage straightforward.
• Recording Individual Trips: For each trip, record the starting and ending kilometre readings on your odometer. This method simplifies the calculation of your daily mileage.
• Comprehensive Trip Recording: It’s important to include every individual trip in your log. Grouping trips together and stating a single amount for the day can lead to inaccuracies.
• Accuracy and Transparency: The more precise and transparent your log sheet is, the more likely the family will be satisfied with your submission. Accurate records also reduce the likelihood of queries or disputes regarding your mileage claims.

Petrol Guide Conclusion:

Understanding and applying AA charges per km is essential for au pairs who use their personal vehicles for work-related travel. This guide provides the necessary information and tools to effectively manage your travel expenses.

Staying informed, maintaining accurate records, and communicating clearly with your family is key to ensuring fair compensation. This not only supports a positive working relationship but also ensures that au pairs are not financially disadvantaged for fulfilling their job responsibilities.

Share this:

• Click to share on Facebook (Opens in new window)
• Click to share on X (Opens in new window)
• Click to share on LinkedIn (Opens in new window)
• Click to share on Pinterest (Opens in new window)
• Click to print (Opens in new window)
• Click to email a link to a friend (Opens in new window)

Au Pair Handbook

Unlock the secrets of au pairing.

Discover the ultimate guide to becoming an exceptional au pair with our comprehensive and FREE Au Pair Handbook . Packed with valuable insights, practical tips, and expert advice, this handbook is your go-to resource for navigating the exciting world of au pairing!

Download Your Free Au Pair Handbook

Complete the form below:

You have successfully joined our subscriber list.

• Skip to content

Little Sunshines

Au Pair Agency

AA Rates Calculator

Below is a link to the AA Rates Calculator on the AA Website so that you can calculate your AA Rate for your monthly petrol reimbursement.

Please remember the following:

• You do NOT charge the family for kilometers travelled TO work from your home (unless otherwise agreed, though this is very rare)
• You do NOT charge the family for kilometers travelled TO your home from work (unless otherwise agreed, though this is very rare)
• The AA rate will be specific to YOUR vehicle therefore you can only obtain the AA rate for your car
• There is no general standard average monthly AA rate as it depends entirely on WHAT vehicle YOU have (make, model year and so on…)
• The only way to obtain YOUR AA rate is to click on the link above and to enter the details required so that you can receive the AA Rate for YOUR car
• You need to keep a log sheet or log book of mileage travelled DAILY so that you can claim the mileage you travelled
• Families are entitled to check the distance you travel and the routes you take
• Do not take personal offence if a family asks to check your log sheet, your calculations, the routes you have travelled and so on (they are well within their rights to do so and most families do!)
• if you happen to take a longer route we suggest you enter the reason why you did so in the log book so as not to be guilty of the above offense as sometimes there are valid reasons to take a longer route on occasion, for example, the shorter route was heavily backed up with traffic due to an accident
• We advise that you check your AA rate every 3 months (given the change in fuel prices) and if it has changed to update the family by providing them with the updated AA Rates Certificate which you can obtain via the link above
• You should submit your log sheet and petrol reimbursement amount to your family on the last working day of each month
• The family should pay your petrol reimbursement by no later than the 7th of the following month i.e. they have 7 days to pay it from the time that you submitted the amount to them
• the daily mileage travelled
• the cost of the daily mileage travelled based on your car’s AA rate
• the total mileage travelled for the month
• the total cost of the mileage travelled for the month based on your car’s AA rate
• It is best to update your log sheet DAILY so that you remain on top of it
• this makes it very easy to calculate your daily mileage
• You need to include EVERY individual trip, you can’t just group them and state it as one amount for the day
• The more accurate your log sheet is, the happier the family will be when you submit it and the fewer queries there are likely to be

Little Sunshines is Here for You!

With over 15 years in the industry we are well-equipped to handle all your requirements. We are dedicated and committed to helping you so that you can stress less. Leave it to us to assist you!

Simply Contact Us for Further Assistance!

Gauteng Western Cape Kwa-Zulu Natal Free State Mpumalanga North West Limpopo Northern Cape Eastern Cape

True Story…

Trip Fuel Cost Calculator

Our trip fuel cost calculator will tell you how much it will cost you to drive over a certain distance, based on the current fuel price, your vehicles fuel efficency and the distance you need to travel.

How to use our trip fuel cost calculator

We’ve made it easy to see how much a trip will cost you if you drive. Simply enter the distance you need to drive (in kilometres), you vehicles fuel efficiency (in litres per 100km) and the current fuel cost per litre. The calculated results will tell you how much fuel you will use for the trip and how much the trip will cost you in total.

Click here to check the current fuel price.

Recommended Articles

Neveretirees: Why South Africans Won’t Retire Early

How You Know It’s Time To Reassess Your Life Insurance

Do You Need A Will or Life Insurance? 

Effective Budget Strategies For South African Professionals  

Can You Get A Personal Loan In A Tough Economy?

Subscribe to our newsletter.

Quick Read Magazine

What is AA Rate Per KM in South Africa?

What is AA Rate Per KM in South Africa? 418 cents per kilometre . The Income Tax Act No.58 of 1962 allows taxpayers who receive a travel allowance to claim a deduction for the use of their private vehicles for business purposes. It is important to note that travel between your home and place of work cannot be claimed and is regarded as private travel. Here’s the answer to your question ‘What is AA Rate Per KM in South Africa in 2023’. Read on.

ALSO READ: Cheapest Car Insurance in South Africa

In This Article

What is AA Rate Per KM in South Africa 2023?

No other compensation in the form of a further allowance or reimbursement (other than for parking or toll fees) is payable by the employer to that recipient, that rate per kilometre is, at the option of the recipient, equal to 418 cents per kilometre . For more information visit SARS eLogbook here .

How Do You Calculate Rate Per KM in South Africa?

The calculation of the rate per kilometer in South Africa can vary depending on the type of vehicle and the purpose of the trip.

For personal use, the South African Revenue Service (SARS) has set a standard rate of 418 cents per kilometer for the first 36,000 kilometers, and a reduced rate of 25 cents per kilometer for any additional kilometers.

For business use, the rate is higher and set at R4.18 per kilometer. This rate is for any distance driven, there is no limit for the distance driven for business use.

These rates are subject to change, so it is best to check with SARS for the most up-to-date information.

It’s also important to note that these are the standard rates set by SARS and might not be the rate used by a specific company or organization.

Does the AA Rate Include Fuel in South Africa?

The AA, or Automobile Association, is a car association that provides services such as road assistance, insurance, and travel planning for its members. The AA does not have a fixed rate per kilometer as it is not a transportation company. The AA does not provide fuel as part of their services.

The rate per kilometer that I mentioned earlier is set by South African Revenue Service (SARS) for personal and business use vehicle expenses tax deductions. These rates do not include the cost of fuel, only the cost of operating the vehicle, such as maintenance and depreciation.

If you are looking for fuel prices in South Africa, you can check the website of the Central Energy Fund or the website of the Department of Energy.

What is the SARS Rate Per kilometre 2023 in South Africa?

According to FinCor , the rate per kilometre is fixed by the Minister of Finance and currently is R4.18 per kilometre (from 1 March 2022).

Where the reimbursive allowance does not exceed the prescribed rate per kilometre, however other compensation is paid to the employee (travel allowance code 3701), the amount is not subject to employees’ tax but the full amount must be reflected on the IRP5 certificate under code 3702.

What is the Average KM Per Litre in South Africa?

The average kilometers per liter (km/l) that a vehicle can travel on a single liter of fuel can vary greatly depending on a number of factors, including the type of vehicle, the driving conditions, and the driving habits of the driver.

According to a recent study in South Africa, the average km/l for a car is around 8km/l in urban areas and around 12km/l on the highway. However, this can vary greatly depending on the vehicle. A small hatchback may get better fuel economy than a larger SUV or pickup truck.

It’s also important to note that these are averages and actual fuel economy will vary depending on the specific make and model of the vehicle, and how it is driven.

It’s also important to note that these are averages and actual fuel economy will vary depending on the specific make and model of the vehicle, and how it is driven. Factors such as traffic congestion, speed, weather, and road conditions can all affect fuel economy.

Image Courtesy: Unsplash

• Board of Directors
• Management & Employees
• Approved Partners
• Roadside Assist
• CSI (Corporate Social Investment)
• Accredited Sales Agents
• International Driving Permit
• AA Membership Club
• Vehicle Inspections
• Driver Training
• Road Safety Advocacy
• Road Safety Courses
• Franchising
• Road Crash Statistics
• Road Safety Tips
• What to do at a crash scene
• Tourism Information
• Carnette de Passage
• AA Traveller
• Guide to Drive
• Latest news
• Publications
• Events Calendar
• AA Rates Calculator

Welcome to AA Rates Calculator!

Your vehicle rates are more than just numbers; they determine your financial security on the road..

With our Rates Calculator, you can take charge of your expenses and make informed decisions for your journeys.

Don’t let uncertainty hold you back – click on the link below to calculate your vehicle rates now. Empower yourself and become a savvy AA Namibia member, ensuring every trip is as smooth on your wallet as it is on the road. Let’s embark on this financial road trip together! Calculate your rates today and experience worry-free driving.

Click on the link below to access the AA Rates Calculator.

https://aa.co.za/vehicle-rates-calculator/

AA Namibia is a full member of the Fédération Internationale de l’Automobile (FIA). Founded in 1904, the FIA brings together 240 leading national motoring organizations from 114 countries worldwide and is the governing body for world motor sport. 

Products Offered

Opportunities.

• Expressions of Interest
• Consultancy Services
• Sponsorships

Useful Tools

• AA Distance Calculator

© 2023 AA Namibia . All Rights Reserved | Website by PressPlay

Sitemap | FAQs

CRS News Flash 28 February 2024 – SOUTH AFRICA – Rates in respect of motor vehicles and the AA rate

https://www.crs.co.za/wp-content/uploads/2024/02/CRS-News-Flash-28-February-2024-SOUTH-AFRICA-Rates-in-respect-of-motor-vehicles-and-the-AA-rate.pdf

© 2024 C RS Technologies (Pty)Ltd. All Rights Reserved.

• 2024 AA rate
• AA rate for motor vehicles
• AA rate per kilometre

Engage™ Europe, Middle East, Africa distributor.

Quick links

• Participate
• CRS HR Services
• CRS Tax Advisory
• CRS Payroll Bureau
• Engage™ Software
• Engage™ Europe
• Enstruct e-learning portal
• Testimonials
• Partner Portal
• Partner Application
• SCARF Philosophy
• Hipe Agreement

Inspired, Engaged and Rewarded Employees

2024/2025 Tax Guide

2024/2025 Tax Guide download

Download your copy of the CRS 2024/2025 Tax Guide

This will close in 0 seconds

We use cookies to ensure that we give you the best experience on our website.