Salary Sacrifice - Workride

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 Workride. For information about The Wheel Deal, please see our page here. 

About Workride

Workride was formed by Connor Read and Aidan Smith, who previously won Government funding to trial Shutl, an e-bike subscription service in Christchurch.

Workride works with almost every bike retailer in the country with ~50 in Auckland alone, including ourselves.

Workride was the first to bring a product to market to make it easier for employers to offer tax-free e-bikes to their employees, they work with almost every bike retailer in the country (including ourselves) and offer a highly polished website and back-end portal for employers and retailers. The level of finish doesn't come with its costs which we pay in the form of a commission. Consequently, there is a 5% surcharge when using this offer to help us cover half of the commission. 

Workride Plus

As of October 2025, Workride has also started trialling a more developed offering called Workride Plus, inclusive of financing and insurance of the e-bikes, initially aimed only at large organisations such as governments. Workplaces with 50+ employees are the intended market after the intial trial period; it might never transpire that smaller workplaces become eligible due to higher credit risks when providing finance to smaller organisations. The additional cost of using Workride Plus is equal to 10% of the purchase price of the bike, covering the interest on finance and the risk of Workride receiving the bike back in the event the employee leaves the employer within 12 months.

How Workride works

Your workplace needs to be registered

In order to organise one of our e-bikes using Workride, your workplace must agree to it in the first place, by registering here. We can't say whether or not your company is already registered - you would need to check internally. It's not been 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. For larger organisations, the addition of Workride Plus removes the financing barrier and related risks.

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. Bring along your drivers license and Workride 'unique customer ID' (provided by your workplace)

Paperwork, payment and salary sacrifice

We enter your unique ID and the last 3 digits of your drivers license into the Workride back-end and it matches with your name. We then enter the bike you've selected and its price plus 5% surcharge. Workride reviews the information and then sends your company the relevant documentation for approval. They give their approval and get you to sign the necessary salary sacrifice paperwork. Your workplace pays Workride in full (unless using Workride Plus) and they send you a 'pick up code'. 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! 

Bring your 'workride pick up code' and your drivers license - we will require these on the day of your bike pickup to release your e-bike.

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.