Fringe benefit tax exemptions
Bikes, e-bikes, scooters, electric scooters, public transport and micromobility share services are exempt from fringe benefit tax where they are being used for commuting to and from work. Businesses can take advantage of this to help support their staff to commute more sustainably at a reduced cost.
NZ Transport Agency Waka Kotahi has guidance for employers on how to set up e-bike purchase support schemes.
Ride-to-work staff benefit programmes
Since April 2023, bikes, scooters, and public transport benefits have been exempt from Fringe Benefit Tax (FBT) in New Zealand, making it easier for workplaces to support cycle-commuting.
Through ride-to-work programmes offered by their employer, employees can buy a bike or scooter for commuting and pay it off over time using pre-tax salary. The effective cost is reduced through tax savings and spreading payments over 12 months or more further reduces the cost barrier. Employees can choose from a wide range of bikes and scooters at participating bike shops and start riding to work right away.
Providers like Workride, The Wheel Deal, and Vapaus help with programme admin, ensure tax compliance and may provide financing and insurance. Learn more on the providers' websites here:
Workplace e-bike fleets and public share micromobility
Local bike shops in Wellington can help with setting up a fleet of e-bikes for your staff to use, as well as providing short-term hires or longer term subscriptions for staff looking to trial riding to work. See bike shops in Wellington (Google Maps) .
Staff can also make use of public e-scooter and e-bike share schemes operating in Wellington.