With rising fuel prices placing pressure on household budgets across New Zealand, commuting by car has become expensive for many employees. For businesses, this creates an opportunity to provide meaningful support while also improving sustainability outcomes. Auckland Transport’s FareShare scheme offers a practical, cost-effective way to respond.
What is FareShare?
FareShare is an employer-supported public transport programme that allows businesses to subsidise employee travel on buses, trains, and ferries. Employers can choose to cover 25%, 50%, or 75% of fares, with the discount automatically applied via employees AT HOP cards.
The system is simple to manage, with no administration fees and monthly billing based only on actual usage.
Supporting Employees Through Rising Petrol Costs
As fuel prices rise, employees using private vehicles face higher daily expenses and increased financial stress. FareShare addresses this by making public transport significantly more affordable, offering a reliable alternative to using the car.
By easing commuting costs, businesses can deliver immediate, tangible value to staff, helping them better manage the cost of living while improving overall morale.
Business Benefits in a High Fuel Cost Environment
1. Reduced Costs and Greater Efficiency
Fuel price increases also impact businesses through mileage claims, fleet costs, and parking expenses. Encouraging public transport use through FareShare can reduce these costs while improving efficiency. Employers are only charged for actual usage, making it a flexible and scalable solution.
Additionally, FareShare is exempt from Fringe Benefit Tax (FBT), making it more cost-effective than many other employee benefits.
2. Less Dependence on Fuel
FareShare helps organisations reduce reliance on petrol by shifting commuting habits toward public transport. This not only protects businesses and employees from ongoing fuel price volatility but also contributes to reduced congestion on busy roads.
3. Stronger Sustainability Outcomes
Reducing fuel consumption directly supports environmental goals. By encouraging public transport use, businesses can lower emissions, particularly Scope 3 emissions linked to staff commuting, and align with broader climate targets. It’s a great marketing tool as well.
This makes FareShare a practical step toward achieving sustainability objectives.
4. Improved Employee Experience
Commuting can be one of the most stressful parts of the day, especially when fuel costs are high. FareShare provides a more affordable and often less stressful alternative, allowing employees to avoid traffic and enjoy a more predictable journey.
It also strengthens employee satisfaction, helping attract and retain talent in a competitive job market.
A Proven Impact
FareShare doesn’t just reduce costs, it changes behaviour. Businesses using the programme have seen public transport usage increase by over 30%, helping to reduce congestion and reliance on private vehicles.
Looking Ahead
As petrol prices continue to fluctuate, solutions like FareShare are becoming increasingly valuable. By supporting public transport use, businesses can reduce costs, enhance employee wellbeing, and contribute to a more sustainable future.
Get Started
If your organisation is looking for a practical response to rising fuel costs, FareShare is a strong place to start: Auckland Transport FareShare
By rethinking commuting, businesses can turn the challenge of rising petrol prices into an opportunity, delivering smarter, more affordable, and more sustainable travel for their teams.
Disclaimer – While all care has been taken, Johnston Associates Chartered Accountants Ltd and its staff accept no liability for the content of this article; always see your professional advisor before taking any action that you are unsure about.
JOHNSTON ASSOCIATES, Level 1, One Jervois Road, Ponsonby, T: 09 361 6701. www.johnstonassociates.co.nz
