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Individual income tax Tāke moni whiwhi mō te takitahi

Salary exchanged for private use of an employer-provided motor vehicle

From 1 April 2014 if you agreed to a lower salary in exchange for private use of a company motor vehicle, the amount of your salary reduction is treated as part of your income for WfFTC and student loans.

If the use of the vehicle just comes with the job then do not include the value. For example, you can use the work vehicle for private and work-related use without it affecting your salary or wage.


When Erin started work, her employer offered her a:

  • $50,000 salary and the private use of the work car, or
  • $58,000 salary without private use of the work car.

Erin decided to use the employer-provided car instead of the $8,000 in additional salary.

Erin must include the $8,000 as income for WfFTC and student loans.