Wellington workers could save about 30% on public transport if their employers join a new tax‑free scheme.

Greater Wellington Regional Council has launched the scheme with fintech company Extraordinary. It allows employees to allocate part of their pre‑tax income to a transport card for bus, train and ferry fares. Inland Revenue approved the model last year.

For every $50 of pre‑tax income used, the employee’s take‑home cost is about $31. Annual savings could exceed $900.

Employer‑provided public transport through the scheme is exempt from Fringe Benefit Tax. Employers pay $50 per participating employee per year but do not pay Kiwisaver contributions on the allocated income. Extraordinary says the scheme becomes cost‑neutral if employees allocate at least $28 per week.

Metlink passengers can now use the Extraordinary card to tag on and off services and buy monthly passes. The card can also be added to digital wallets.

Deloitte, Victoria University of Wellington, Kiwibank, Hutt City Council and Greater Wellington Regional Council have opted in. The council is encouraging workers to ask their employers to join.

Extraordinary says the scheme could increase public transport use, support office attendance and reduce carbon emissions.

Source: Janhavi Gosavi / New Zealand Herald

12/06/26