MG 07 Electric Sedan — What It Means for Your Novated Lease
The MG 07 electric sedan has arrived to challenge Tesla Model 3 and BYD Seal. Here's what Australian PAYG employees need to know about novating one.
A new electric mid-sizer has entered the chat. SAIC-owned MG Motor has revealed the MG 07, a flagship electric sedan positioned to compete directly with the Tesla Model 3 and BYD Seal in the Australian market. According to the EVcentral report [Source 1], the MG 07 is an all-new platform — not a refresh — and arrives loaded with tech.
For most buyers, the headline story is price positioning. MG has historically undercut the competition, and if the 07 lands at a competitive driveaway price, it could become one of the more accessible electric sedans in the segment. That matters a lot when you're running the numbers on a novated lease.
What this means for novated lease customers
Here's the part the press release won't tell you: whether the MG 07 qualifies for the FBT exemption on electric vehicles matters far more to your take-home pay than the sticker price alone. Under current legislation, eligible battery electric vehicles under the luxury car tax threshold can attract zero fringe benefits tax when held under a novated lease — meaning your employer deducts lease payments from your pre-tax salary and the FBT liability disappears.
The MG 07 hasn't been officially priced for Australia yet, so we can't confirm eligibility right now. But if it lands below the LCT threshold (currently $91,387 for fuel-efficient vehicles for the 2024–25 income year), it's worth running a proper quote. The potential tax savings on a vehicle in this segment — compared with buying the same car outright — are material for PAYG employees in the mid-to-upper tax brackets.
It's also worth comparing the MG 07 against the BYD Seal and Tesla Model 3, both of which are already novated-lease-ready in Australia. Different residual values, different running costs, and different lease terms all affect your real cost. Don't just compare the cars — compare the structures.
Common questions
Is the MG 07 eligible for the EV FBT exemption?
It hasn't been priced for Australia yet, so we can't confirm eligibility. The key tests are: it must be a battery electric vehicle, and the value must fall under the luxury car tax threshold for fuel-efficient cars. We'll update this page once official Australian pricing is confirmed.
How does the MG 07 compare to the BYD Seal or Tesla Model 3 on a novated lease?
All three are electric sedans that could qualify for the FBT exemption, but residual values, service costs, and finance rates differ. The right choice depends on your salary, km estimate, and lease term — not just which car you prefer.
Can I novate a car before it's officially on sale?
Yes, in many cases you can lock in a novated lease structure ahead of delivery, particularly once a dealer order is confirmed. Talk to us before you sign anything at the dealership.
What's the LCT threshold for electric vehicles in 2024–25?
The luxury car tax threshold for fuel-efficient vehicles (including BEVs) is $91,387 for the 2024–25 income year. Vehicles priced above this are ineligible for the EV FBT exemption.
Does millarX handle MG novated leases?
Yes. millarX is ACL-licensed and can arrange novated leases across most makes and models available in Australia, including MG vehicles. Contact us once the MG 07 is officially priced and available to order.