If a new bike or e-bike has been on your wishlist, it’s worth knowing about Workride, New Zealand's bike-to-work scheme. With Workride, you can offset 32 to 63% of the cost by leasing your bike through your employer out of your pre-tax pay, so you're not paying tax on the money that goes towards it. You pay the bike off gradually over the lease, and at the end of the term, you'll have the option to take ownership of the bike.
Scroll down to find out about New Zealand's bike-to-work benefit, and how to use it at Racers Edge.
So, what is Workride?
Workride is a government-backed, FBT-exempt salary sacrifice scheme. In plain terms: your employer pays for the bike up front, then you pay it back gradually out of your pre-tax salary, a bit like how KiwiSaver comes out before you ever see it. Because that money comes out before tax, you offset whatever you'd normally have paid in tax on it, which is where the 32 to 63% figure comes from. At the end of the lease, the bike is yours to keep. It's 100% free for employers to offer, too, so there's no cost to your workplace for signing up.
How much can you offset?
The exact offset depends on what you earn, because it's tied to your tax rate. The more tax you'd normally pay on that slice of income, the more you offset. As a rough guide:
• The headline offset is 32 to 63% off the cost of your bike or e-bike.
• To be eligible you need to earn over $53,501 a year and your employer must be keen to sign up for the scheme.
For example, say you earn $80,000 and pick a bike that's retailing for $5,200. Your take-home pay drops by around $49 a week, which works out to roughly $2,570 over the year. Because it comes out of your pre-tax pay, the bike ends up costing you around $2,570 rather than the full $5,200 it would from your after-tax income. Plug your own numbers into the Workride savings estimator to see where you'd land.
How it works at Racers Edge
Once you know your workplace is on board, it's a quick five-step run:
1. Check and apply – confirm your employer is a Workride partner, then apply through Workride.
2. Choose your bike – come and see us at 22 Ardmore Street or browse online, pick your bike, and give us your Workride quote number.
3. We order it in – we'll get your bike sorted. If it's in stock, that's a matter of days; if we need to order it in, a little longer.
4. Pick it up – collect your bike with your delivery ID code and your driver's licence.
5. You’re ready to ride – the primary purpose of your bike is for commuting, but if you want to use it for fun outside of work days, go for it!
Which bikes can you get?
Pretty much any bike in our range is fair game, from a hardtail that’ll handle your weekday commute and weekend trails through to a big-battery e-bike. E-bikes are where a lot of people land, because the scheme makes an otherwise pricey purchase genuinely affordable, and an e-bike turns a sweaty, hilly commute into an easy one. We stock e-bikes from Trek, Giant, Liv and the premium, DJI-powered Amflow, spanning commuter and lifestyle e-bikes, hardtail trail e-bikes and full-suspension e-bikes. Pop in and our Gear Guides will match you to the right one. One thing to note: a 5% surcharge applies to bikes bought on sale.
The fine print worth knowing
• The bike needs to be used mainly for commuting to and from work. Weekend adventures are absolutely fine, as long as you're also riding it to work during the week.
• At the end of the lease, you have the option to take ownership of the bike, so it ends up yours to keep.
• Salary sacrifice affects everyone's situation a little differently, so it's worth a quick chat with an independent financial advisor before you commit.
What if my employer isn't signed up?
Easily sorted. Because Workride is free for employers and takes very little to set up, most are happy to come on board once they hear about it, especially as it's a genuine perk that costs them nothing. You can refer your workplace directly through Workride, and once they're a partner you're good to go.
Quick-fire Workride questions
Do I own the bike at the end? Yes, you have the option to take ownership at the end of the lease, so it's yours to keep.
Is there a cost for my employer? No cost to them. Workride is free for employers to offer, which is why it's an easy yes for most workplaces.
Can I use it for an e-bike? Absolutely, and it's one of the best uses of the scheme. The offset make a quality e-bike far more attainable.
How much will it actually cost me? You'll offset between 32 and 63% of the cost, depending on your income and tax rate. The estimator will give you a figure based on your own numbers.
Can I ride it on the weekend? Yes. It just needs to be used mainly for commuting through the week. Weekend missions are all part of the deal.
Ready to ride?
Pop into Racers Edge, 22 Ardmore Street, and our Gear Guides will walk you through it, help you pick the right bike, and get you set up on Workride. You can also start your application and run the numbers on the Workride page, or get in touch with any questions.
