The Green Party has made it easier for commuters to access e-bikes thanks to an amendment to tax rules.

“This is a huge Green win that we have been pushing for many years. 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,” says Greens transport spokesperson Julie Anne Genter.

Today the Government agreed to Green MP Julie Anne Genter’s amendment to the fringe benefit tax regime. The change will exempt bicycles, electric bicycles, and other low emissions transport from fringe benefit tax when used for commuting. 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. This has created the absurd situation where, in a climate crisis, employers are incentivised to subsidise polluting forms of transport for their staff.

“After years of pressure from the Greens, the Government is finally stepping in to fix this. It is a long overdue change that will help level the playing field between the different options people have for travelling to and from work.

“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.

“Over 400 people and organisations campaigned for this change. Many other countries have long running tax benefits for active travel like bikes. Aotearoa now joins them in using our tax system to get the emissions reductions we need,” says Julie Anne Genter.

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