Did you know that you can save 32-62% when you purchase any bike, e-bike or e-scooter in Aotearoa?

To encourage people to take advantage of this, Mount local Dan Wallace (owner of electrify.nz, Coastal Riders and Vallkree NZ) has launched The Wheel Deal, a platform that assists both private and public sector employees onto discounted bikes/scooters. The sustainable transport platform is supported by New Zealand owned and operated bike and scooter wholesalers, and all models of bikes are available through The Wheel Deal – not just electric. Dan has worked with the owners of Bay of Plenty bike stores to ensure that any brand is available too, as supporting local businesses is key for the initiative.

Fringe benefit tax

The Central Government removed fringe benefit tax (FBT) on bikes, e-bikes and e-scooters in 2023; FBT is made up of GST, ACC and PAYE tax. With this tax change, employees don’t have to pay these levies on their new rides, and they can use The Wheel Deal to save between 32-63% off the RRP of any bike or scooter (that meets New Zealand power regulations) through a pre-tax salary sacrifice agreement. Based on the average New Zealand annual income, the average saving sits at around 38%.

The initiative follows European models and is designed to encourage employees to commute to work on a more sustainable and healthy mode of transport. 

How does The Wheel Deal work?

Employers purchase the selected bike from the retailer, then transfer ownership of the bike to the employee on day one. The cost of the bike is financed by the employee through a 12-month reduction in pre-tax income, equal to the purchase price of the bike. The rider will also receive two free bike services from their retailer in the 12 months, so they are well supported.

The industry-led initiative doesn’t add additional fees to the bike’s RRP. The retailer just pays a flat fee per bike sold under the scheme to The Wheel Deal.

Why should businesses get involved?

The Wheel Deal been guided by the IRD and Deloitte to create a simple, streamlined process that supports both the rider, local retailer and employer. Benefits can include a reduction in company emissions, investment in staff health and wellbeing (which, in turn, can boost productivity), and helping staff to access a substantial saving on a bike or scooter.

Interested employers can register their interest on the site. The Wheel Deal team will then set up a time to meet and help the business through the process, including the provision of all IRD and payroll documentation needed for implementation.

Mode Shift is a key part of Priority One’s sustainability work. In Tauranga, nearly 90% of commutes to work are by private car – we are one of the most car-reliant cities in Aotearoa (as seen by our serious congestion) and transport is the main source of the region’s emissions.

On the upside, the Bay of Plenty region has some beautiful trails riders can use for commuting, so if you have thought about switching your mode of transport, there’s no time like the present.

Employers and employees can register their interest at www.thewheeldeal.nz