2026 Leapmotor B05: Is It Worth a Novated Lease?
The Leapmotor B05 has landed in Australia to take on the MG4 and BYD Dolphin. Here's what PAYG employees need to know about leasing one tax-effectively.
A new name has entered the affordable EV chat. Leapmotor — a Chinese manufacturer backed by Stellantis — has confirmed pricing and specs for its B05 electric hatchback in Australia, positioning it as a direct rival to the MG4 Urban and BYD Dolphin. According to the EVcentral AU report [Source 1], the B05 is a rear-wheel-drive small EV, a drivetrain layout that's relatively unusual at this price point and likely to get attention from buyers who've ruled out front-drive alternatives.
For context: this is a crowded segment, and 'challenger' is a word the EV industry throws around a lot. The B05 still needs to prove reliability and resale value in the Australian market — two factors that matter a lot when you're locking into a three-to-five year novated lease.
What this means for novated lease customers
If the B05 is priced under the luxury car tax threshold (currently $91,387 for fuel-efficient vehicles for the 2024–25 year), it will likely qualify for the electric vehicle FBT exemption, meaning the car's private use value won't attract fringe benefits tax when packaged through a novated lease. That exemption — legislated under the Treasury Laws Amendment (Electric Car Discount) Act 2022 — is the single biggest reason affordable EVs have become so attractive to salary-packaged employees.
The practical upside: PAYG employees can fund the car's lease payments and running costs (charging, registration, insurance, tyres) from pre-tax salary, reducing their taxable income. The lower the vehicle's drive-away price, the larger the proportion of your salary packaging cap the car consumes — so a competitively priced B05 could be a genuinely efficient use of the FBT exemption. That said, potential savings vary materially depending on your income, employer, and lease term — run the numbers before you commit.
One caveat worth saying plainly: Leapmotor is a new entrant to Australia. Residual values on unfamiliar brands can be harder to predict, and some fleet managers will price that uncertainty into the lease. Ask your novated lease provider how they're treating the residual before you sign anything.
Common questions
Does the Leapmotor B05 qualify for the EV FBT exemption?
Almost certainly yes, provided its drive-away price sits below the luxury car tax threshold for fuel-efficient vehicles. Confirm the final pricing with your employer or novated lease provider once the vehicle is listed, as on-road costs can push a vehicle over the threshold.
How does the B05 compare to the MG4 or BYD Dolphin for a novated lease?
All three sit in a similar price bracket and should qualify for the same FBT exemption. The key differences to weigh are range, residual value projections, and your employer's approved vehicle list. The B05's rear-wheel-drive layout is a differentiator, but resale data is thin for Leapmotor in Australia.
Can I include charging costs in my novated lease?
Yes. Under a fully maintained novated lease, eligible running costs — including home charging and public charging — can be bundled into your pre-tax package alongside the lease payment.
What happens at the end of the lease if residual values on the B05 are low?
If the car's market value at lease end is below the agreed residual, you may face a balloon payment shortfall. This is a real risk with new-brand EVs. Discuss residual value guarantees and fleet pricing with your provider upfront — it's one of the things millarX works through with customers before they sign.
Is the EV FBT exemption permanent?
No. The exemption is legislated but has been subject to ongoing political debate. Plug-in hybrid vehicles lost the exemption from 1 April 2025. It's worth understanding the current rules at the time you enter a lease, not just at the time you're researching.