Kiwi fintech maverick, Extraordinary, has seized a rare opportunity to align the stars — combining a recent Fringe Benefit Tax (FBT) change with a first-of-its-kind salary sacrifice solution. As a result, Kiwi commuters now have a powerful reason to leave the car at home. Public transport can finally be paid for using pre-tax income, made possible by Extraordinary’s Card and platform.
New research by Extraordinary shows strong appetite for the change:
- 21% of Kiwis who currently commute by car say they would consider switching to public transport if their employer offered a tax-free travel benefit – rising to 40% among younger workers aged 18–34.
- 19% of remote workers say they’d commute into the office more often if they received a public transport allowance.
With younger employees especially responsive to incentives, the new option gives employers a powerful tool to support greener, more vibrant cities – while helping workers keep more of their pay.
These findings come at the perfect time: employers can now provide public transport allowances without incurring Fringe Benefit Tax (FBT) – saving both employers and employees money, and making cleaner, more affordable commuting a reality.
To mark the milestone, Extraordinary CEO Steven Zinsli joined Mayor of Auckland Wayne Brown for a media moment on Auckland’s Britomart, one of the city’s busiest business and transport hubs.
“This is a game-changer for how people travel to work,” said Steven Zinsli. “It’s now easier and cheaper for employers to support public transport, and workers can keep more of what they earn.”
Until now, FBT rules meant employer-subsidised transport came with tax penalties, limiting uptake. That’s now changed – with Extraordinary’s innovative solution, employees will have the ability to top up existing transport cards using pre-tax income, reducing travel costs and encouraging more sustainable transport options.
The shift arrives at a crucial moment, as cities like Auckland seek ways to reduce congestion and emissions, while also reviving CBD activity. Recent research shows that office occupancy remains below 70% in some major centres, well below pre-pandemic levels.
Mayor Wayne Brown said: “One of my key priorities when I was elected as Mayor was to get Auckland moving, and initiatives like this will make it easier for people to get to work by bus or train and help reduce congestion on our roads. This is good for the environment, good for our cities and good for our economy.”
Why this matters:
- More money in workers’ pockets: public transport benefits are now tax-free
- No extra cost to employers: avoid FBT while supporting sustainability
- Convenience: Top up existing transport cards using pre-tax income
- Cleaner cities: fewer cars = reduced emissions and congestion
- City revival: supports return-to-office and urban vibrancy.
Extraordinary is already partnering with major employers across New Zealand and expects demand to accelerate as more businesses take advantage of the updated FBT rules.
To read more, visit www.extraordinarypay.com/our-solutions/public-transport.
About Extraordinary
Extraordinary is a New Zealand-based fintech platform revolutionising how employers manage non-payroll benefits. Its smart employee card supports Gifting, Public Transport, Rewards, and other allowances – replacing reimbursements and manual admin with real-time, flexible payments. Founded in 2021 and based in Auckland, Extraordinary is trusted by forward-thinking companies to boost retention, compliance, and employee satisfaction.
