Are employer-paid bus passes FBT-exempt in NZ?

Yes, since 1 April 2023, employer-funded bus fares are FBT-exempt if they are provided mainly for the employee to travel between work and home. The exemption also covers train, ferry, and cable car fares for the same purpose. The benefit must be primarily for home-to-work travel; if the employer pays for general personal travel, the exemption does not apply and the cost is an unclassified fringe benefit subject to the de minimis exemption.

Are employer-provided e-bikes FBT-exempt?

Yes. Employer-provided bicycles, electric bicycles, scooters, electric scooters, and other low-powered vehicles classified by Waka Kotahi as mobility devices are FBT-exempt from 1 April 2023. The exemption also covers vehicle-share services for any of these transport modes (such as Lime, Beam, or Onzo subscriptions). The exemption applies regardless of whether the e-bike is used for home-to-work travel or general personal use, distinguishing it from the public transport exemption which has a home-to-work test.

Does the public transport FBT exemption cover taxis?

No. Taxis, shuttles, ride-share services (Uber, Ola), and air transport are NOT covered by the public transport FBT exemption. These remain subject to the general FBT rules. The exemption is limited to bus, train, ferry, and cable car fares plus the Total Mobility Scheme equivalents. Taxi rides for employees would be unclassified fringe benefits subject to the $300 per employee per quarter and $22,500 per employer per annum de minimis thresholds.

What if the employee uses the bus pass for personal travel too?

The exemption applies if the bus pass is provided mainly for home-to-work travel. Some incidental personal use does not break the exemption. However, if the dominant purpose is personal travel (such as a generic monthly pass given as a perk regardless of work commute), the exemption does not apply and the full value becomes an unclassified fringe benefit. The IRD's Tax Information Bulletin Vol 35 No 6 provides examples of acceptable use patterns.

Are car parks at work FBT-exempt?

Employer-provided car parks AT the employer's business premises are not subject to FBT (they are an on-premises benefit). Car parks NEAR the workplace but not on the premises (such as a leased space in a commercial car park) are technically a fringe benefit but in practice are usually treated as on-premises if the employer has an exclusive right to use them. Car parks for client visits are not benefits to the employee at all.

Public Transport FBT Exemption Checker NZ

Since 1 April 2023, employer-funded bus, train, ferry, and cable car fares for home-to-work travel are FBT-exempt. So are employer-provided bicycles, e-bikes, scooters, and e-scooters. This checker walks you through the qualifying conditions and tells you whether your specific benefit is FBT-exempt, partially exempt, or subject to the standard unclassified benefit rules with the $300 quarterly de minimis threshold.

Updated April 2026 Implements the 1 April 2023 amendments to section CX 19B of the Income Tax Act 2007 and Tax Information Bulletin Vol 35 No 6.

The 1 April 2023 public transport exemption

Section CX 19B of the Income Tax Act 2007 was inserted with effect from 1 April 2023 to remove FBT from common public transport benefits and active transport modes. The reform was a response to the post-COVID push to reduce private vehicle commuting. It has two parts: (1) public transport fares for home-to-work travel, and (2) self-powered and low-powered vehicles regardless of use.

Part 1: Public transport fares (home-to-work)

The following fares are FBT-exempt if the employer pays for them and they are provided mainly for the employee to travel between home and work:

Bus fares (including BeeCard top-ups, monthly passes, and individual tickets)
Train fares (KiwiRail metro services, Transdev, suburban rail)
Ferry fares (commuter ferries, Auckland and Wellington services)
Cable car fares (Wellington Cable Car)
Transport partly funded by the Total Mobility Scheme (taxis and shuttles where the user qualifies for Total Mobility)

The "mainly for home-to-work travel" test allows incidental personal use without breaking the exemption. A weekly bus pass that the employee occasionally uses on weekends still qualifies. A bus pass given as a generic perk with no commute connection does not.

Part 2: Self-powered and low-powered vehicles

The following are FBT-exempt without the home-to-work test:

Bicycles (regular pedal-powered)
Electric bicycles (e-bikes)
Scooters (push)
Electric scooters (e-scooters)
Other low-powered vehicles that Waka Kotahi has declared mobility devices or non-motor vehicles
Vehicle-share services for any of the above (Lime, Beam, Onzo, etc.)

This part is broader: employers can provide an e-bike to an employee for general use without FBT consequence, even for personal use unrelated to commuting.

What is NOT covered

The following remain subject to standard FBT rules:

Taxis (Corporate Cabs, Green Cabs, etc., when not Total Mobility)
Ride-share (Uber, Ola, Zoomy)
Shuttle services (private airport shuttles, employer-arranged transport)
Air transport (domestic flights)
Cars provided to employees
Off-premises commercial car parking (technically a fringe benefit, often treated as on-premises in practice)

For these, the unclassified benefit rules apply with the $300 per employee per quarter and $22,500 per employer per annum de minimis exemption.

On-premises parking

Car parking provided AT the employer's business premises is not a fringe benefit at all because it is an on-premises benefit. The same parking provided NEAR the premises (a commercial car park leased by the employer) is technically a fringe benefit but in practice is usually treated as on-premises if the employer has exclusive rights and the parking is reserved for staff.

Sources

This checker provides general guidance only. Always verify your treatment with a tax adviser or refer to ird.govt.nz.

Related calculators

NZ FBT Calculator — calculate FBT on individual benefits
FBT De Minimis Calculator — for benefits that fall outside this exemption
Subsidised Transport FBT Calculator — for transport operators
FBT Entertainment Decision Tool — entertainment vs FBT