Why can I not access a high power e-scooter on Workride?

E-scooters with a motor power output above 300 watts are classified as mopeds under the Land Transport Act and these scooters fall outside the scope of the CX 19D ITA issued Fringe Benefit Tax exemption by Inland Revenue. That means they must be registered, meet moped safety standards, and be operated only by licensed riders. If these conditions are not met, the scooter is illegal to operate on New Zealand roads. While police enforcement may be limited, the law is clear — and just because something isn’t being enforced doesn’t make it legal.

But the 300 watt limit is super limiting?

While we understand the 300W restriction may be limiting — particularly for taller and larger riders or hilly commutes — Workride is actively working with policymakers to advocate for a more appropriate framework, such as a speed limit rather than a power cap. Until then, we remain committed to safety, compliance, and risk minimisation for every employer and employee we support.

Employees can still access compliant e-scooters with a power output up to 300 watts, as long as the unit meets the definition of low-powered transport equipment under both the Land Transport Act and the CX 19D ITA. Reputable brands offer compliant models, and Workride ensures that scooters acquired through our program meet all necessary requirements to keep employers and employees safe and protected.

Why are these high powered scooters not tax compliant?

From a tax compliance perspective, these scooters fall outside the scope of the CX 19D ITA issued by Inland Revenue, which explicitly applies only to “low-powered transport equipment.” Equipment exceeding 300W of rated power does not meet this definition and is not tax-exempt under this legislation. If an employer enables an employee to access a high-powered e-scooter through a salary sacrifice scheme or other benefit structure, they are in breach of tax legislation and may be liable for unpaid Fringe Benefit Tax (FBT), interest, and penalties — all of which can be backdated.

In addition, program providers facilitating access to non-compliant equipment may be viewed as enablers of tax avoidance or evasion, creating severe legal exposure for both the provider and the employer. Inland Revenue has wide powers to audit and enforce these rulings. While enforcement may appear limited day-to-day, this does not remove the liability or risk, and any incident, injury, or audit can quickly expose non-compliant schemes to serious financial and reputational damage.

Why does non-compliant equipment create significant exposure to business directors?

The risk is even more serious if an injury or fatality occurs involving non-compliant equipment. Under the Health and Safety at Work Act 2015, an employer — particularly if they knowingly approved or facilitated the use of equipment that is illegal to operate on public roads — may face criminal liability, civil claims, and severe reputational damage. Directors and officers can also be held personally liable for failing to take reasonably practicable steps to manage these risks.

The program provider that enabled or facilitated access to such equipment could likewise face significant consequences. If a provider knowingly supports the procurement of non-compliant transport under a salary sacrifice or benefits scheme, they may be considered a party to the breach, and could be subject to civil proceedings, regulatory action, or investigation by Inland Revenue or WorkSafe depending on the nature of the incident.

Finally, if a bike shop knowingly supplies an overpowered e-scooter (above 300W) for use in a workplace commute—particularly through a benefit scheme like Workride—they may be exposing themselves and their directors to serious legal consequences. Under the Health and Safety at Work Act 2015, directors and officers have a duty of due diligence to ensure that the business does not expose others to risk through unsafe or non-compliant products. Supplying a product that is illegal to operate on public roads for commuting use may be considered a breach of this duty, especially if an injury or fatality occurs. In such cases, directors can be personally liable—facing fines, civil action, or even prosecution—if it’s found they did not take reasonably practicable steps to ensure compliance with transport law and workplace safety obligations.

This is why Workride enforces strict compliance checks with every ride processed, protecting our retail partners from inadvertently taking on this risk if their in-store team makes a mistake.

Workride ensures your business is compliant and safe.

Workride exists to eliminate this risk. Our program is fully compliant with both tax law and transport legislation, ensuring that only equipment meeting the CX 19D ITA and Land Transport Act is eligible for the ride-to-work benefit. If a ride does not qualify, it is automatically excluded from the program.

Workride, in partnership with our trusted retailer network, reviews and checks every single ride order to ensure business directors are protected from the significant risks of non-compliance. This includes potential tax penalties, legal exposure, and health & safety liabilities that could arise from approving non-compliant equipment.

We are aware of other program operators permitting a “wild west” approach — allowing ineligible, non-compliant equipment through under the radar exposing employers to significant risk. Workride takes a zero-tolerance stance on this. As stewards and pioneers of New Zealand’s ride-to-work benefit program, we support and educate employees, employers, and retail partners on this, and if deemed appropriate, will report any non-compliant activity to Inland Revenue’s investigations team to protect the integrity of the benefit and the safety of the employees it serves.