In 2023, Inland Revenue approved the new Workride scheme, which provides employees of Workride-registered employers with an opportunity to benefit from an industry-leading cost offset of 32-63% off the in-store price of a new bike, e-bike or scooter through Workride's industry-leading cost offset scheme, made possible by tax exemptions.
The scheme is designed in collaboration with top New Zealand councils, businesses and agencies to help and incentivise Kiwis in the workforce to choose an e-bike, regular bike or scooter to commute to work, which has many benefits including (often) faster commute times, traffic reduction and physical and mental health benefits for the rider. E-bikes are expected to be the popular choice for this newly-released scheme, as they can offer the user high versatility as to where and how they can be used, and a long battery range.
"Workride is all about creating a positive impact for employees and employers," explains Aidan Smith, co-founder of Workride. "It's a comprehensive win for everyone involved. Employees enjoy savings and a healthier lifestyle, which contributes to their overall happiness and productivity. And for employers, it's an investment in their staff's well-being, which pays off in enhanced loyalty and retention."
How does it work and where do the savings come from?
Firstly, your employer needs to register with Workride, then you as a staff member simply register online and pop into one of the 150+ participating stores nationwide to choose your chosen ride benefit. Employers then facilitate the benefit directly with Workride, and you ride your e-bike (or chosen mode of transport) on a lease arrangement for 12 months, while your salary sacrifice effectively repays the employer for providing this benefit. After this initial 12-month lease, and given you have completed the lease payments, Workride proceeds with the option of transferring the e-bike, cycle or scooter into your ownership. Due to the salary contribution made from your pre-tax pay, you benefit from a reduction in income tax, thus providing a financial incentive to ride to work!
In these changing times, companies of all sizes are starting to look for ways that they can address the cost-of-living crisis and provide benefits for the health and well-being of their staff. Workride is proving to be a popular step for companies, with well over 1,000 companies already investigating how this can work for their teams and organisations in 2024.
For more information, visit workride.co.nz
