The Refreshed Xpeng G6 Is Here — Should You Novate It?
Xpeng's refreshed G6 SUV is taking on the Tesla Model Y in Australia. Here's what PAYG employees need to know before adding it to a novated lease.
The Xpeng G6 just got a significant mid-cycle refresh, and according to The Driven's first drive, it's a genuine step up — upgraded powertrain, improved sensing systems, and a clear shot aimed at the Tesla Model Y, currently Australia's best-selling EV. That's a bold target. But bold isn't always wrong.
For PAYG employees considering a novated lease, a new competitive entry in the mid-size electric SUV space is worth paying attention to — not because the Xpeng badge is flashy, but because more competition in this segment tends to mean better value, and novated leasing amplifies that value through pre-tax purchasing power.
What this means for novated lease customers
Here's the part the press releases won't tell you upfront: the FBT exemption for eligible EVs (vehicles under the luxury car tax threshold, used for private purposes) applies regardless of whether you pick a Tesla, a BYD, or an Xpeng — provided the vehicle meets the ATO's criteria. More eligible models entering the market means you have more genuine choices without losing the tax benefit.
The refreshed G6's positioning in the mid-size SUV bracket — competing on price and spec against the Model Y — could make it a compelling novated lease candidate for employees who want EV tax advantages but aren't sold on paying a premium for a Tesla badge. That said, residual values, service network coverage, and lender appetite for a given make all factor into what a novated lease actually costs you over the term. Xpeng is still building its Australian footprint, and that's a legitimate consideration your broker should walk you through — not gloss over.
We're not saying the G6 is the right call for everyone. We're saying it deserves a proper look alongside the obvious options, with the numbers run honestly.
Common questions
Is the Xpeng G6 eligible for the EV FBT exemption in Australia?
Eligibility depends on the vehicle's base price sitting under the luxury car tax threshold and the lease commencing while the exemption policy is in force. You'll need to confirm the specific variant's drive-away price and check against current ATO guidance — your novated lease broker should do this before you sign anything.
How does the Xpeng G6 compare to the Tesla Model Y for a novated lease?
On paper specs, the refreshed G6 is competitive. But a novated lease comparison isn't just about the car — it's about residual value projections, insurer appetite, and how lenders treat the brand. Model Y has an established track record in Australia; the G6 is newer to market, which introduces some uncertainty worth pricing in.
Can I novate any EV, or are some brands excluded by lenders?
Most mainstream lenders will finance well-known EV brands, but some newer or less-established marques can attract tighter lending criteria or lower residual value assumptions. Always ask your broker which lenders they're submitting to and why — the answer matters for your real out-of-pocket cost.
Does a novated lease still make sense if I'm unsure about EV charging at home?
Charging infrastructure is a practical question that affects your day-to-day costs, not the lease structure itself. Many novated lease packages can include a home charger installation in the pre-tax bundle — ask specifically about that when you're getting quotes.
What happens to my novated lease if the FBT exemption changes?
Leases entered into before any policy change are generally protected under the terms agreed at signing, but future policy shifts can affect new leases. This is exactly why you want a broker who stays across ATO and Treasury announcements — not one who just processes paperwork.