Wellington workers can pay for the bus, train or ferry straight from their pre-tax salary, saving 30%+ on their commute. It runs on the Metlink network, has an Inland Revenue product ruling, and is easy to set up and access through your employer. Here's how it works and what it's worth to you.

What pre-tax public transport actually is

We built Extraordinary's public transport benefit around one idea: you're already paying for your commute, so you shouldn't be paying income tax on that money first.

It works through salary sacrifice. You agree to set aside a fixed amount of your pre-tax pay each cycle, which means you're taxed on a smaller salary and keep more of your money. You pay $31 to get $50 loaded on your Extraordinary card, which you can use to tag on and off Metlink buses, trains and ferries, or to buy passes.

The card taps like any contactless bank card across the Metlink network and sits in your Apple or Google Wallet. Wellington's shift to contactless fares made it a natural fit.

Greater Wellington Regional Council has been openly supportive. As RNZ reported, council chair Daran Ponter said we'd achieved what Metlink had spent four years trying to do, and the council has been encouraging Wellington workers to ask their employers to switch it on.

How much you could save

Your saving scales with two things: how much your commute costs and what tax rate you're on. The more you spend and the higher your bracket, the more tax you avoid.

For an $80,000 earner commuting five days a week:

• Karori to the CBD by bus: around $900 a year
• Upper Hutt to Wellington Station by train: around $1,725 a year

Same trip, same tap, just paid for with pre-tax income instead of take-home pay.

Our chief executive, Steven Zinsli, puts the $900 figure in plain terms: a month of groceries, a few power bills, a school uniform. He calls the benefit "a pay rise your employees didn't know they already had", which is the honest framing. This isn't a discount someone else funds. It's tax you'd otherwise have handed over on money you were always going to spend.

Your own number depends on your salary, your weekly spend and your KiwiSaver rate. Run it below.

Which employers offer it

Many New Zealand employers already run pre-tax public transport through Extraordinary, including BNZ, 2degrees, Spark and Air New Zealand. Any Wellington business can switch it on for its team, the rollout isn't limited to a region or a sector.

If you work is in central Wellington, there's a good chance your employer is already weighing it up. The capital has one of the highest public-transport commuting rates in the country, which is exactly why it's where the benefit makes the most difference per head.

Why it's available now

The benefit rests on a product ruling issued by Inland Revenue, BR Prd 25/03, issued in May 2025. That ruling confirmed salary sacrifice for public transport through the Extraordinary platform qualifies for the public transport FBT exemption under section CX 19C of the Income Tax Act 2007.

The exemption itself had existed in law for years. What was missing was a compliant way for employers to actually use it. The ruling closed that gap, which is why pre-tax commuting went from theoretically possible to something your payroll team can set up.

It also lands in the middle of a real affordability squeeze. Pre-tax commuting is a different lever from a fare cut or a government subsidy: it doesn't need either. It just stops employees overpaying tax on a cost they already carry, at no meaningful cost to the employer.

What it costs your employer (almost nothing)

This is the part worth taking to your HR or finance team, because the usual objection is cost, and the cost mostly isn't real.

Only costing your employer $50 or less a year and saving you $900+.

How to get it at your workplace

If your employer already offers Extraordinary, ask your HR team how to opt in.

If they don't offer it yet, refer them. It takes two minutes, you can stay anonymous, and we send your employer a clean breakdown with the Inland Revenue ruling and the numbers attached. Most employers go live within two pay cycles.

Start with your own saving, then send it on. Refer your employer here

Frequently asked questions

Can you salary sacrifice public transport in New Zealand?

‍Yes. Salary sacrifice for public transport is allowed under the FBT exemption in section CX 19C of the Income Tax Act 2007. Extraordinary holds a binding Inland Revenue product ruling (BR Prd 25/03) confirming the arrangement qualifies, which is what makes it usable in practice rather than just in theory.

How much can I save with pre-tax public transport?

‍Most commuters save around 30% of their public transport spend, because the money is set aside before income tax. An $80,000 earner travelling from Karori to the Wellington CBD by bus saves roughly $900 a year; from Upper Hutt by train, around $1,725. Your exact figure depends on your salary, weekly spend and KiwiSaver rate.

Can I use the card on weekends and for personal trips?

‍Yes. The card works 24/7 with no restriction to weekday travel. The only condition under the Inland Revenue ruling is that at least 51% of your total usage is commuting to and from work. Weekend and personal travel is fine as long as you meet that threshold overall.

Which cards and networks does it work on?

‍You can tap on and off directly with your Extraordinary card (physical or in your Apple or Google Wallet) anywhere contactless payment is accepted on public transport. You can also use it to top up your preferred transit card, including Snapper, AT HOP, Metrocard, Bee Card and the new national Motu Move card. Across Wellington that covers Metlink buses, trains and ferries, including the East by West ferry.

Does it only work in the main centres?

‍No. It works nationwide across public transport providers, not just the big cities. Anywhere the bus, train or ferry operator takes Mastercard contactless, or has a regional card you can top up, the Extraordinary card works, from Wellington to Queenstown to Napier.

Can I opt out whenever I want?

‍Yes, it's not locked in like KiwiSaver. You just tell payroll to stop the deduction. You can also adjust your contribution up or down at any time. The one thing to know: once you opt out, there's a 12-month wait before you can re-enrol with the same employer, so it's worth setting an amount you're comfortable keeping.

What happens to my balance if I leave my job?

‍It stays yours. The funds came out of your own pre-tax pay, so when you leave, payroll deductions stop and any remaining balance is still yours to spend on public transport. Just transfer it to your preferred transit card (Snapper, AT HOP, Motu Move and so on) before your Extraordinary card is switched off. ‍

How do I get it if my employer doesn't offer it yet?

‍Use the calculator above to work out your saving, then refer your employer through the same form. You can stay anonymous. We send them a breakdown with the Inland Revenue ruling and the numbers, and most go live within two pay cycles.

Extraordinary is New Zealand's only Inland Revenue-approved platform for salary sacrifice public transport benefits. Run your commute through the calculator above, or refer your employer in two minutes. Savings figures are indicative and based on a Deloitte-prepared tax model; actual savings vary with salary, KiwiSaver settings and other income-based deductions.

References

• RNZ / Local Democracy Reporting, "Wellington jumps aboard tax-free public transport fares," by Justin Wong (12 June 2026)
• Inland Revenue, Product Ruling BR Prd 25/03 (issued 16 May 2025)
• Income Tax Act 2007, Section CX 19C
• Extraordinary public transport savings calculator (Deloitte-prepared tax model)

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