– It sucks, to be completely honest. It has been like this for a very long time too, says Joachim Kjerstad Austerslåt about the driving allowance. Every day and in all kinds of weather, he sets out on the newspaper rounds in Ålesund – in his own car. Admittedly, next year the driving allowance makes a sharp jump when the rate increases from NOK 4.03 to NOK 4.48. EXPENSIVE: The driving allowance barely covers diesel or petrol, according to Joachim Kjerstad Austerslåt. Photo: Trond Vestre / news But there is a big but: the rate has, so to speak, stood still since 2013. The backlog for people who use their own car for work is therefore massive. And this year, in addition, the price of petrol and diesel has skyrocketed. – It’s far too little, says Austerslåt about the money he receives as compensation for the delivery job. – That barely covers the diesel or petrol. For me, 2022 has been a disaster. You don’t have to pay to work. You go to work to make money, not to pay the company, he states. Last autumn, he vented his frustration with increased costs in the Free Trade Union movement. Austerslåt works for a private company, which, like around 90 percent of all private companies, follows the state’s rates. The mileage rate is therefore not only important for government employees. – Losing money And the newspaper delivery service in Ålesund gets support from experts: Car costs have risen steadily in recent years. That’s what financial adviser Espen Øren at the HR company Simployer says. – If we look at the last ten years, development has stagnated. There has even been a decline since 2017, he says to news. – This means that you lose money by making a car available to your employer when you are on business trips, notes the expert. The state’s mileage rate is determined in a negotiation between LO Stat and the state at the Ministry of Local Government and Modernisation. PRICE SHOPPING: The cost of petrol and diesel has reached record levels through 2022. Photo: Marius Guttormsen According to Statistics Norway, the general price increase in society since 2013 has been over 30 per cent. – The fact that we are now getting trousers is of course a step on the way. But there will still be a pretty big backlog here. This will only correct a small part of it, says Øren about the increased rates. And there is one more piece of joy for motorists: the tax-free part of the allowance of NOK 4.48 per kilometer is left at rest, at NOK 3.50. – They are paid more since the state’s rate has increased, but the taxable portion will be larger. For employers, there will be more in employer’s tax. So there will be an increased cost for employer and employee, says Øren. Facts about mileage allowance On 5 December, the Ministry of Local Government and Modernization agreed with the employee organizations on new travel rates for 2023. For the use of one’s own car in a work context, the state’s rates for kilometer allowance are increased by 45 øre, from NOK 4.03 to NOK 4.48. In the years 2008 to 2013, the rate increased gradually, from NOK 3.50 to NOK 4.05. In the years from 2013 until today, the rate has moved only marginally. This year it is NOK 4.03. Only part of the driving allowance is tax-free. Next year, NOK 3.50 of the remuneration will be exempt from tax. This is the same level as the previous six years. Another result of this year’s negotiations is that the subsistence allowance will be increased from NOK 825 to NOK 872 next year. (Source: Simployer, FriFagbevegelse) Standstill The driving allowance is intended to cover costs such as car and tire expenses, maintenance, insurance, fuel, loss of value on the car and any loan. PRIORITIZATION: FRP’s fiscal policy Roy Steffensen. Photo: William Jobling / news But the numbers speak for themselves: the development in remuneration was almost at a standstill in the years 2013-2021, when Erna Solberg (H) and her bourgeois government ruled the country. – In some areas, it has become more expensive to use a car. But during the period we were in government, we chose to focus on a number of other things that are important for motorists, says the Progressive Party’s finance policy Roy Steffensen to news. – It is about investing heavily in building and maintaining roads. We got a number of car-related taxes removed and reduced and a number of tolls removed, he adds. – Do you regret not prioritizing this more strongly when you had the opportunity? – I am proud of the investments we were able to make in transport. May cost more Special adviser Jan Petter Røssevold in the Road Traffic Information Council (OVF) has worked extensively on calculating the cost of keeping a car. The answer depends on a number of different factors, including the price of the car, annual mileage, whether it is an electric, petrol, diesel or plug-in hybrid car. – According to OVF’s latest estimate from April this year, an electric car with a new car price of NOK 450,000 and a mileage of 15,000 kilometers costs NOK 5.86 per kilometer, says Røssevold to news. Back in 2013, it was estimated that a petrol car with a purchase price of NOK 375,000 and a mileage of 15,000 kilometers would cost NOK 6.48 per kilometre, while a diesel car would cost NOK 6.00 per kilometre, OVF’s reports show. OVF basically looks at new cars. But if the car is older and cheaper to purchase, it will be able to reduce some of the costs, perhaps less loss in value and lower interest cost of tied up capital than on a new car. When it comes to older cars, the general warranty is usually five years for most passenger cars, given an average mileage. However, the costs of servicing and repairs can often be greater on older cars. Cars that are four years or older must also have EU approval every two years. EXPENSIVE: In the last ten years, it has become increasingly less profitable to use your own car for work. Photo: Lise Åserud / NTB
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Get more for using your own car at work – but the backlog is large – news Norway – Overview of news from different parts of the country
