MG 07 Electric Sedan: What Australian Drivers Need to Know
MG's new 07 EV sedan rivals the Tesla Model 3 and BYD Seal. Here's what it means for novated leasing, FBT exemptions, and your take-home pay. Read on.
MG Motor has just unveiled the MG 07 — a new flagship all-electric mid-size sedan designed to take on the Tesla Model 3 and BYD Seal in Australia's increasingly crowded EV market. According to EVcentral AU, the 07 sits above the existing MG4 in the lineup and arrives packed with tech. It's a proper sedan — not a crossover — competing in the segment that's seen the most aggressive price competition among EV brands over the past two years.
For PAYG employees who've been watching the EV space, another credible option in this price bracket is genuinely useful news. More competition tends to mean better pricing, and better pricing matters a lot when you're running numbers on a novated lease.
What this means for novated lease customers
The headline opportunity here is the FBT exemption for eligible EVs. Under the current rules, battery electric vehicles below the luxury car tax threshold can be packaged through a novated lease with no fringe benefits tax applied — meaning your employer makes lease payments from your pre-tax salary and the FBT liability that would normally arise is wiped out. That's a structural tax advantage that doesn't apply to petrol or hybrid vehicles in the same way.
Where the MG 07 lands in terms of drive-away pricing will determine whether it sits inside the LCT threshold and qualifies. We don't yet have confirmed Australian pricing, so it's too early to run final numbers — but if MG prices it competitively against the Model 3 and BYD Seal (both of which have qualified), there's a reasonable chance it will fit. Watch this space closely before signing anything.
If you're already considering a novated lease on a Model 3, Seal, or similar sedan, the MG 07's arrival is worth factoring in. More supply and more competition across this segment can affect resale values, which in turn affects how lease residuals are set — something your broker should be modelling for you, not glossing over.
Common questions
Does the MG 07 qualify for the EV FBT exemption?
We don't yet have confirmed Australian pricing for the MG 07, so we can't say definitively. The exemption applies to battery electric vehicles priced below the luxury car tax threshold. Once pricing is confirmed, that's the first number to check.
How does a novated lease on an EV differ from one on a petrol car?
For eligible EVs, there's no fringe benefits tax applied to the lease benefit — that's the core difference. On a petrol vehicle, FBT is calculated and either paid by your employer or passed back to you, which significantly reduces the tax benefit of packaging.
Can I novate an MG 07 right now?
Not yet — the vehicle hasn't launched in Australia with confirmed pricing or availability. When it does, if it meets the LCT threshold requirement, it should be eligible. Get in touch and we'll alert you when we can run real numbers.
Is the MG 07 worth waiting for versus a Tesla Model 3 or BYD Seal?
That depends on your priorities — features, range, brand preference, and how soon you need the vehicle. From a pure novated leasing structure, the vehicle choice matters less than whether the car qualifies for the FBT exemption and fits your budget.
What if I'm mid-lease on another EV — does a new model launching affect me?
New model launches can influence used-car market values, which may affect your residual position at the end of the lease. It's worth reviewing your residual value assumptions with your broker if you're 12–24 months from end of term.