Extraordinary launches pre-tax commute card in New Zealand

Extraordinary has launched a new salary sacrifice solution in New Zealand, enabling employees to pay for public transport using pre-tax income through the Extraordinary Card and platform.

The new initiative follows a binding Inland Revenue ruling and changes to Fringe Benefit Tax (FBT) rules, marking the first time such a scheme has been available in New Zealand.

Commuter incentives

According to research commissioned by Extraordinary, there is considerable interest in salary sacrifice public transport benefits. The survey found that 21% of current car commuters would consider switching to public transport if their employer offered a tax-free allowance, a figure that rises to 40% among those aged 18–34. Additionally, 19% of those working from home said they would be more likely to commute into the office if offered a public transport benefit.

Steven Zinsli, Chief Executive Officer of Extraordinary, commented on the potential impact of the scheme for both employees and employers.

"For the first time, employees can access their pre-tax income to pay for public transport, improving take-home pay while helping employers meet sustainability goals and bring workers back into our cities," said Steven Zinsli, CEO of Extraordinary.

The Extraordinary Card allows employees to top up existing public transport cards directly via pre-tax salary. This approach aims to simplify operational complexity for employers offering sustainable commuting incentives, while providing financial and well-being benefits to employees.

Business and city outcomes

Supporters of the scheme highlight its potential to impact wide-ranging outcomes, including business productivity, urban regeneration, emissions reduction, and overall well-being.

The significance of the new offering was marked by a gathering at Britomart in Auckland, attended by Steven Zinsli and Mayor of Auckland Wayne Brown.

"This is not just a product launch – it's a national milestone," said Zinsli. "For businesses, this is a low-cost, high-impact way to meet ESG commitments, attract talent, and reinvigorate office culture."

Previous regulatory analysis by Inland Revenue highlighted the potential for FBT-exempt public transport to encourage commuter behaviour change, though it noted that practical rollout had been a barrier. Extraordinary's platform seeks to address this by leveraging digital payments technology, enabling streamlined and compliant access to transport perks for employees.

Potential impacts

The company outlines several anticipated benefits for both workers and employers. These include an estimated NZD $768+ annual saving for workers on a NZD $70,000 salary, based on calculated tax savings from salary sacrifice, as well as a lower FBT burden for employers offering commuter allowances.

The shift from single-car use to public transport is also expected to alleviate road congestion and reduce emissions. Broader city regeneration is a further aim, with less stressful, more reliable commutes believed to improve productivity. Data from the New Zealand Institute of Economic Research indicates that post-pandemic office occupancy in major central business districts remains below 70% of pre-2020 levels, highlighting the need for effective incentives to support workplace attendance.

Wayne Brown, Mayor of Auckland, lent municipal support to the launch.

"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," said Mayor Wayne Brown.

Extraordinary is currently engaging with employers from various sectors to implement the new allowance, reporting encouraging signs of early adoption.

The projected employee savings were calculated using Deloitte's salary sacrifice public transport model, with the estimate based on a weekly spend of NZD $50.