The mileage reimbursement rate for governmental purposes in fiscal year 2014 was 54 cents per every kilometer for the first 5,000 kilometers. After 5,000 kilometers, the rate drops to 48 cents per kilometer.
The Canada Revenue Agency sets the automobile reimbursement rates for each fiscal year. This rate is used by all governmental agencies in Canada, including agencies of the province of Ontario, to calculate automobile reimbursements for employees who use their own vehicles to conduct official business.
Although there is a standard rate for most of Canada, travel in the Northwest Territories, Yukon and Nunavut entitles the traveler to an additional 4 cents per kilometer. These reimbursement rates are set forth in section 7306 of the Income Tax Regulations. They represent the maximum that an employee may be reimbursed; agencies have some discretion over what is considered a reasonable reimbursement.
The government of Ontario requires all claims for such a reimbursement to include receipts. It allows reimbursement for governmental contractors and consultants as well as employees. Employees of public utilities and publicly funded entities such as schools, school boards and hospitals are also eligible for reimbursement. Ontario's Integrity Commissioner further specifies rules regarding expenses and reimbursements to ensure transparency and accountability regarding the use of public funds for this purpose.