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Income Tax Act 2007

Income - Excluded income - Exclusions and limitations

CX 19C: Certain public transport

You could also call this:

“Employer payments for public transport to work are not considered fringe benefits”

When your employer helps pay for your travel between home and work, it’s not considered a fringe benefit if the fare is for certain types of public transport. This includes buses, trains, ferries, and cable cars. It also covers transport partly funded by the Total Mobility Scheme run by Waka Kotahi.

The law defines a bus service as a way to carry passengers for a fee using a motor vehicle. However, it doesn’t include services you can book just for yourself or your group, or shuttle services as defined in section 5 of the Land Transport Management Act 2003.

A public transport fare is the money you pay for a trip on transport that anyone can use and that has set prices.

The law uses the same definition for a rail vehicle as section 4(1) of the Railways Act 2005.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS850906.

Topics:
Money and consumer rights > Taxes
Transport and travel > Public transport
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CX 19B: Transport in vehicle other than motor vehicle, or

“Transport in non-passenger vehicles without motors isn't a fringe benefit”

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CX 19D: Certain self-powered and low-powered vehicles and vehicle-share services, or

“Tax rules for employer-provided bikes, scooters, and vehicle-share services for commuting”

Part C Income
Excluded income: Exclusions and limitations

CX 19CCertain public transport

  1. A fare that an employer subsidises mainly for the purposes of an employee travelling between their home and place of work is not a fringe benefit if the fare—

  2. is a public transport fare for 1 or more of the following:
    1. bus service:
      1. rail vehicle:
        1. ferry:
          1. cable car:
          2. is partly funded by the Total Mobility Scheme administered by Waka Kotahi.

            1. Bus service means a service for the carriage of passengers for hire or reward by means of a motor vehicle, but does not include—

            2. a service that can be reserved for use by a single person or a self-selected group of people:
              1. a shuttle service as defined in section 5 of the Land Transport Management Act 2003.

                1. Public transport fare means the money paid for a journey on a means of transport that is available to the public and for which set fares are charged.

                2. Rail vehicle has the same meaning as in section 4(1) of the Railways Act 2005.

                Notes
                • Section CX 19C: inserted, on , by section 27(1) (and see section 27(2) for application) of the Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 (2023 No 5).