News and Media

A level playing field for sustainable transport options

Written by NZGBC | 28 July 2023
Photo by Elliot Blyth on Unsplash

The New Zealand government has removed Fringe Benefit Tax (FBT) on public transport, bikes, ebikes and scooters, opening up greater incentives for employees to use more environmentally friendly transport.

FBT is a tax payable when employees are given benefits such as a company vehicle, low interest/interest free loans, or free, subsidised or discounted goods and services. 

“Fringe Benefit Tax has been mentioned as a barrier for employee public transport subsidy schemes. This recent change allows organisations to empower staff to take up more environmentally-friendly transport options and reduce reliance on single occupancy vehicles,” says Bobby Shen, Business Development Manager – Existing Buildings. 

“This move levels the playing field, as previously free carparking has often already been able to avoid FBT.

“We had one organisation looking at reducing the number of carparks to staff as a part of a wider development and was considering options for promoting greater use of a nearby train station. We know of other CBD-based organisations subsidising public transport by half. These changes will make it easier and more palatable for companies to introduce and administer a public transport subsidy scheme."

Green Star Performance awards points to those with a Transport Policy encouraging and enabling building users to use lower-carbon ways of getting to and from the building. It also has a Transport Modes Survey credit that promotes a snapshot of how building users travel. As well as awarding points if sustainable modes exceed benchmarks, this survey allows the property owner/manager to take stock of existing travel and respond to what they find out.

We hope the changes to FBT will open up opportunities for more organisations to look into sustainable transport options. In Auckland, email travelwise@at.govt.nz to discuss your workplace requirements. In other centres, contact your public transport provider.