MG S6 EV Lands in Australia: Is It Worth a Novated Lease?
MG S6 EV priced under $50K with 500km+ range. Here's what Australian PAYG employees should know before considering a novated lease. Read the breakdown.
MG has confirmed Australian pricing and specifications for the S6 EV, its new mid-size SUV that slots in as a direct rival to the Tesla Model Y. According to the EVcentral report [Source 1], the S6 EV offers more than 500km of range and comes in under the $50,000 mark — a combination that's caught a lot of attention in the local EV market.
That price point matters for a specific reason: vehicles under the FBT exemption threshold for eligible EVs can be salary-packaged through a novated lease with no Fringe Benefits Tax applied, potentially making the real cost significantly lower than the sticker price for PAYG employees.
What this means for novated lease customers
The MG S6 EV's sub-$50K pricing means it sits comfortably within reach of the luxury car tax threshold and, more importantly, within the parameters of the FBT exemption for eligible low-emission vehicles introduced by the Australian Government. If the S6 EV meets the eligibility criteria — which requires the vehicle to be a battery electric, hydrogen fuel cell, or plug-in hybrid car below the luxury car tax threshold — it could qualify for zero FBT under a novated lease arrangement.
That's the headline benefit for employees: you're using pre-tax salary to cover the lease payments, running costs, and on-roads, and if the vehicle is FBT-exempt, the usual tax impost on the benefit disappears entirely. The result is potential savings on your overall cost of ownership compared with buying the same car outright with after-tax dollars.
That said, not every EV under $50K automatically qualifies, and the rules around FBT exemption eligibility, luxury car tax thresholds, and employer participation all need to be checked before you sign anything. The S6 EV is new to market — confirm specs, delivery timelines, and compliance status with your employer and a licensed novated lease provider before committing.
Common questions
Does the MG S6 EV qualify for the FBT exemption on novated leases?
Based on its pricing and battery-electric drivetrain, the S6 EV appears likely to meet the eligibility criteria, but formal confirmation requires checking the vehicle's LCT value and ensuring your employer participates in a novated lease arrangement. Always verify with a licensed provider before proceeding.
Is a sub-$50K EV like the MG S6 better value through a novated lease than buying outright?
For PAYG employees whose employer offers novated leasing, using pre-tax salary to fund an FBT-exempt EV can meaningfully reduce your effective cost of ownership compared to an outright cash or finance purchase. The actual benefit depends on your income tax rate, the lease term, and running cost estimates.
How does the MG S6 EV compare to the Tesla Model Y for novated leasing purposes?
Both are battery-electric SUVs that may qualify for the FBT exemption, but the S6 EV's lower entry price means a smaller lease principal, which can reduce your pre-tax deductions and potentially free up more salary packaging capacity. The right choice depends on your personal preferences and financial situation.
Can I novate a brand-new MG S6 EV right now?
The S6 EV has had pricing announced ahead of its Australian showroom arrival, so delivery timelines are still being confirmed. Most novated lease agreements are structured around delivery — your provider can help you get paperwork in order so you're ready when the car lands.
What running costs can be bundled into a novated lease?
A fully-maintained novated lease can include registration, insurance, servicing, tyres, and charging costs — all funded from your pre-tax salary. For an EV, home charging costs may also be includable, though the treatment varies by lease structure.