E-bikes FBT exempt for commuting

Green MP Julie Anne Genter is claiming victory in getting electric bikes, bicycles and other low emission transport exempt from fringe benefit tax (FBT) when used for commuting.

“This is a huge Green win that we have been pushing for many years,” she says.

“It will finally rebalance the tax law to make it easier for people to access e-bikes for commuting to and from work, as well as public transport,” the Greens transport spokesperson adds.

Genter says the Government has agreed to her amendment to the FBT regime.

The Greens had already secured an exemption for public transport passes.

“Providing an employee with a free car park has effectively been subsidised by the Government, while providing an e-bike for example, has been taxed,” Genter explains.

“This has created the absurd situation where, in a climate crisis, employers are incentivised to subsidise polluting forms of transport for their staff.

“The changes mean that when an employer subsidises e-bikes, bicycles, or other forms of low carbon transport for staff as a part of their salary package, they will not be taxed.”

Genter, who is famous for using her e-bike to get to hospital to give birth, says more than 400 people and organisations campaigned for the change.

“Many other countries have long-running tax benefits for active travel like bikes,” she says.

“Aotearoa now joins them in using our tax system to get the emissions reductions we need.”