Salary Sacrifice - The Wheel Deal

The provision of e-bikes by an employer to an employee has been exempt from Fringe Benefits Tax (FBT) since early 2023. The e-bike in question has to be provided for the purpose of travelling to work. Non-electric bikes, scooters and public transport are also exempt from FBT. 

This means it is possible for an employee to fund an e-bike from their pre-tax income, costing them significantly less out of their pocket compared to purchasing one the normal way, with their already taxed income. The legislation pertains to the bike only, accessories like hemets, locks etc are not included, nor are ongoing servicing costs.

For this to work, an arrangement needs to be made between the employee and the employer, to cover the cost of the e-bike. This is known as a 'salary sacrifice' arrangement that reduces your (gross) income over a certain time period to cover the cost of the bike. Reducing your gross income by a certain amount will not reduce your net income or 'take home pay' by the same amount - the differential being tax (and related contributions such as kiwisaver, student loan, ACC etc). Salary sacrifice arrangements are as old as the hills and while we have some customers who are 'doing it themselves', the majority of businesses prefer to receive assistance in the process.

As of 2025, there are two companies actively offering a solution to create the salary sacrifice situation and to assist in the creation of the necessary employment paperwork for the company. This page provides information about The Wheel Deal. For information about Workride, please see our page here. 

About The Wheel Deal

The Wheel Deal comes from within the bike industry, founded by Michael Tritt who also founded and owns Electrify.nz, an importer, whosaler (trading as Electric Bikes NZ) and network of e-bike retailers. Electrify also supplies e-bikes to non-electrify retail stores including ourselves. 

The Wheel Deal works with independent retailers around the country whether or not they sell any of Electrify's e-bikes. 

The main selling point of The Wheel Deal is that it is a cost-effective solution for employers and retailers to benefit from the e-bike FBT exemption and as such there are no surcharges when purchasing an e-bike from us through The Wheel Deal. Your company will be buying any of our e-bikes, new or used, on sale or otherwise, at the same price as anyone paying cash. 

How The Wheel Deal works

Your workplace needs to be registered

In order to organise one of our e-bikes using The Wheel Deal, your workplace must agree to it in the first place, by registering with the Wheel Deal here. We can't say whether or not your company is already registered - you would need to check internally. It's not easy to convince a company to sign up, as they do have to fund the e-bikes in full for each employee and then receive the cost back through your reduced pay over 12 months.

Choose your e-bike 

Once your company is registered (or preparing ahead of time if you wish), you would then choose an e-bike as per normal, by visiting our store, going for test rides or with remote assistance. 

Paperwork, payment and salary sacrifice

We then enter details into the Wheel Deal system (a computer portal) with your details and the bike you've selected. This triggers The Wheel Deal to send your company the relevant documentation for approval. They give their approval and get you to sign the necessary salary sacrifice paperwork. Your workplace pays The Wheel Deal in full. We are notified of each step as it progresses and upon hearing the bike has been paid for, we contact you to enjoy your New Bike Day! 

After you have the bike

In practice there isn't much difference to you once you've got the bike - we treat you the same as any other customer, with full warranties, first complimentary check-up and all the rest. Your gross pay will be reduced for 12 months, after which you become the owner of the bike. If you leave your workplace within 12 months, you will have to 'buy out' the remaining balance of the bike from your 'after tax' pay.