Refreshed Xpeng G6 vs Tesla Model Y: What It Means for Your Novated Lease
The Xpeng G6 just got a major refresh and it's gunning for the Model Y. Here's what Australian PAYG employees should know before leasing either EV. Read more.
The Xpeng G6 has always been a credible alternative to the Tesla Model Y — decent range, competitive pricing, and enough tech to make a spec sheet blush. Now Xpeng has pushed out a significant refresh, upgrading the powertrain and sensing systems, and it's clearly aimed squarely at Australia's best-selling EV (The Driven, June 2026).
For most car buyers that's mildly interesting. For Australian employees considering a novated lease, it's worth paying closer attention — because the vehicle you choose directly affects how much FBT exemption you can access, and more competition in the mid-size electric SUV segment generally means better pricing, which flows through to your lease.
What this means for novated lease customers
Both the Xpeng G6 and the Tesla Model Y currently sit below the luxury car tax threshold and are eligible for the electric vehicle FBT exemption — meaning eligible PAYG employees pay no fringe benefits tax on the vehicle when it's structured correctly through a novated lease. That exemption is the single biggest lever in the novated lease equation, and it applies to both vehicles provided they meet the ATO's criteria.
What the G6 refresh does is give you a genuine second option in the same price bracket. More competition in this segment tends to push manufacturers toward sharper drive-away pricing, and since novated lease payments are based on the vehicle's purchase price, a lower cap price can reduce your pre-tax deductions and improve the overall package. Neither vehicle automatically wins on paper — your income, employer setup, lease term, and residual all factor in. But having a credible alternative to the Model Y is a good thing for anyone shopping this segment on a novated lease.
If you're weighing the two up, the honest advice is to get comparison quotes on both before committing. The 'best' EV for a novated lease isn't always the most popular one — it's the one that stacks up best against your specific salary and tax situation.
Common questions
Is the refreshed Xpeng G6 eligible for the EV FBT exemption?
Based on current ATO eligibility criteria, battery electric vehicles under the luxury car tax threshold can qualify for the FBT exemption when novated leased by an eligible employee. The G6's pricing has historically kept it under that threshold, but you should confirm the drive-away price on the refreshed model before assuming eligibility.
How does the Xpeng G6 compare to the Tesla Model Y for a novated lease?
Both vehicles target a similar price bracket and both are BEVs, so FBT exemption eligibility is similar. The practical differences — range, charging speed, resale value, and running costs — all affect total lease cost. Get a quote on both before deciding; the numbers sometimes surprise people.
Can I novated lease an Xpeng vehicle in Australia?
Yes, Xpeng vehicles are available through Australian dealerships and can be structured into a novated lease like any other eligible vehicle. Your employer needs to approve the arrangement and the vehicle must meet the relevant FBT eligibility rules.
Does more EV competition actually help me as a novated lease customer?
Generally, yes. More competitive pricing in the mid-size electric SUV segment can reduce the cap cost used in your lease structure, which may reduce your fortnightly pre-tax deductions. It also gives you leverage when negotiating with dealers.
Should I wait for the refreshed G6 before signing a lease?
That depends on when you need the vehicle and your current tax year timing. Rushing into a lease for tax reasons alone is rarely smart — but if you're already in the market, comparing the refreshed G6 alongside the Model Y is worth doing before you sign anything.