Kilometre Allowance Rate Increase

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Friday February 8 2019
2015-2019/493

Changes To The Canada Revenue Agency Automobile Allowance Rates

On January 4, 2019, the Canada Revenue Agency increased the per-kilometre non-taxable automobile allowance.

In accordance with clause 33.01(b), changes to the Canada Revenue Agency’s automobile allowance rates become applicable sixty (60) days following the Canada Revenue Agency’s effective change date.

 

As of March 6, 2019, the following rates will be applicable:

  • 58¢ per kilometre for the first 5,000 kilometres driven
  • 52¢ per kilometre driven after that
  • In the Northwest Territories, Yukon, and Nunavut, there is an additional 4¢ per kilometre for travel.

 

This represents an increase of 3¢ per kilometre.

Calculation Of Your Vehicle Expenses

To determine whether you are receiving the appropriate reimbursement of your vehicle expenses, multiply the number of kilometres driven per day by 250 days (working days per year). Then, divide that number by 260.88 days (includes Federal legal holidays) to calculate the daily amount to which you are entitled.

 

Example: 

45 km per day X 250 days = 11,250 km per year

  • 11,250 km – 5 000 km = 6 250 km
  • 5,000 km X 58¢ = $2,900  (for the first 5,000 km)
  • 6,250 km x 52¢ = $3,250  (for kilometres driven after that)

Therefore, the reimbursement of your vehicle expenses should be $6,150 per year or $23.57 per day ($6,150 divided by 260.88 days).

You should see an increase as of pay period no. 7, i.e. Your april 4, 2019 pay cheque, which should include three (3) days at the new rates.

In solidarity,

Rona Eckert
National Union representative - Consultation
Chris Pleasants
National Union Representative - Grievances (English) (2008-2019)