With fuel prices continuing to impact household budgets, employers are increasingly looking for practical ways to help employees manage the cost of getting to work. While there is no obligation to cover commuting costs, there are several options that can make a meaningful difference.

We’ve outlined several transport support options that can help your team, depending on how they get to work and what fits your workplace.

Option 1: Public Transport Subsidies through Auckland Transport FareShare

For employees who commute by bus, train, or ferry, Auckland Transport’s FareShare programme is a straightforward option.

FareShare allows employers to subsidise a portion of employees’ public transport fares by loading a discount directly onto AT HOP cards. Employers choose the subsidy level (25%, 50%, or 75%) and whether it applies on weekdays only or seven days a week.

Key benefits:

• Discounts are applied automatically for employees.
• Administration is relatively simple for employers.
• Subsidies are exempt from fringe benefit tax (FBT).

This works best for workplaces in the Auckland CBD or near well-served public transport routes.

🔗 Learn more about FareShare

Option 2: Pre-Tax Public Transport via Extraordinary

Extraordinary Pay provides an IRD-approved arrangement that allows employees to pay for public transport using pre-tax income or receive employer-supported transport as part of a remuneration package.

Employees use an Extraordinary card to top up approved transport cards, including AT HOP and others. This reduces commuting costs without increasing salaries.

This option works well for employers who want:

• A scalable solution across multiple teams or sites.
• A structured and compliant approach to transport support.
• An option that works in multiple cities, not just one centre.

🔗 Explore Extraordinary Pay solutions

Option 3: Supporting Cycling and E-Bikes through WorkRide

For employees living within a reasonable distance of work, or who want an alternative to driving, cycling and e-bikes can significantly reduce commuting costs over time.

WorkRide enables employees to access bikes and e-bikes through a salary sacrifice arrangement, typically spread over 12 months. The scheme is designed to be low administration and generally cost-neutral for employers.

Maximise the benefit:

• Provide secure bike storage.
• Offer flexible start times.
• Give access to showers where possible.

🔗 Find out more about WorkRide

Option 4: Reducing Commuting Altogether

Sometimes the simplest way to support employees is reducing how often they need to travel.

For many roles, options such as hybrid working, flexible start and finish times, or consolidated on-site days can significantly reduce weekly fuel and transport costs without introducing allowances or benefits. Even one extra work-from-home day per week can noticeably reduce communting costs.

This approach also contributes to sustainability goals and can improve employee wellbeing.

Choosing the Right Option

There is no one-size-fits-all solution. Many employers start with one primary option and communicate it clearly rather than trying to accommodate every commuting scenario.

As a guide:

• If most employees use public transport, start with FareShare.
• If you want a structured pre-tax option, explore Extraordinary Pay.
• If you want to support active commuting, consider WorkRide.
• If flexibility is possible, review work patterns first.

Sharing Options with Employees

Sharing these options with your team and inviting feedback before finalising your approach can be reassuring during periods of financial pressure. Even clarity on what is being considered helps employees feel supported.

Freerange can help you implement these commuting solutions or explore other ways to reduce employee transport costs with practical, sustainable strategies tailored to your team.