Tax and legal: GST, Fringe Benefit Tax, and the Consumer Guarantee Act.

Tax and legal: GST, Fringe Benefit Tax, and the Consumer Guarantee Act.

Tax and legal: Considerations of how the Workride arrangement allows for GST, Fringe Benefit Tax, and consumer rights under the Consumer Guarantee Act.

The NZ government is helping businesses support a shift to healthier transport modes by removing fringe benefit tax on bikes, e-bikes, and scooters provided to employees for commuting. However, employers face significant compliance and regulatory challenges if planning to facilitate this benefit internally, Workride is here to help. Workride removes employer headaches, by ensuring compliance through NZ’s only approved scheme, and efficiently managing the administration for participating employees.


The first step to understanding this in more detail is reviewing Workride’s binding ruling which clarifies Inland Revenue’s position on PAYE Tax, Fringe Benefit Tax, and how GST needs to be treated (page 5 on the product ruling). To provide additional clarity Workride has created an interpretation document in partnership with Ernst Young, this interpretation document can be supplied on request and aims to explain the practical implications of the Product Ruling. The arrangement development was a year-long process that Workride undertook with Ernst Young as our lead consultants working directly with Inland Revenue. 


In alignment with the Consumer Guarantees Act 1993, our contracts ensure that your employees' rides are fully backed by standard warranties. This arrangement with the retailer guarantees that the equipment, including any ride equipment, adheres to the same quality and standards as it would if purchased directly by an individual consumer. Consequently, employees enjoy all associated rights, guarantees, and warranties, encompassing the entitlement to demand repairs or replacements for any faulty items at no extra cost. Should any issues emerge, claims can be made in accordance with these established guarantees and warranties, ensuring peace of mind and reliability in your ride's quality and functionality.



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