Skoda Peaq: Is Australia's New Large Electric SUV Worth a Novated Lease?
Skoda has revealed pricing for the flagship Peaq large electric SUV. Here's what Australian PAYG employees need to know about novating one. Read more.
Skoda has just announced first pricing and specifications for the Peaq, its largest electric SUV and a direct rival to the Hyundai Ioniq 9 and Kia EV9 in the Australian market. According to The Driven, the Peaq is positioned as Skoda's flagship EV — and at its expected price point, it's squarely in the territory where a novated lease starts to make real financial sense for PAYG employees.
The large electric SUV segment is heating up. If you've been watching the Ioniq 9 or EV9 and wondering whether a European alternative stacks up, the Peaq is worth a look — particularly if you're already thinking about how to structure the purchase.
What this means for novated lease customers
The Peaq, like the Ioniq 9 and EV9, is a battery electric vehicle (BEV). Under current Australian tax law, eligible BEVs under the luxury car tax threshold are exempt from fringe benefits tax (FBT) when held under a novated lease — meaning the full lease cost can be structured from your pre-tax salary. This is the core reason large EVs are attracting so much attention from salary-packagers right now.
It's worth being clear: the FBT exemption applies to the vehicle, not the brand. Whether it's a Skoda, a Kia or a Hyundai, what matters is that the vehicle is a zero-emissions BEV and sits under the relevant LCT threshold. The Peaq's final Australian pricing hasn't been confirmed yet, so LCT eligibility needs to be verified once local specs land — that's a conversation worth having with a licensed novated lease provider before you sign anything.
For employees in higher income brackets, the potential pre-tax savings on a large family EV like the Peaq can be meaningful — though the exact numbers depend on your salary, the vehicle's drive-away price, and your employer's packaging arrangements. Use a proper calculator, not a back-of-envelope guess.
Common questions
Is the Skoda Peaq FBT-exempt under a novated lease?
Potentially yes — if it's a BEV and priced under the luxury car tax threshold that applies to low-emission vehicles. Final Australian pricing hasn't been confirmed, so this needs to be checked once the local spec sheet is released.
How does the Skoda Peaq compare to the Kia EV9 and Hyundai Ioniq 9 for novated leasing?
All three are large BEV SUVs competing in a similar segment, and all can potentially be structured under an FBT-exempt novated lease. The right choice comes down to pricing, features, and which sits cleanest inside the LCT threshold for your preferred spec.
When will the Skoda Peaq be available in Australia?
Skoda has announced first pricing and specs, but Australian availability and final local pricing are yet to be confirmed. It's worth registering interest early so you can move quickly when ordering opens.
Can I novate a car before it's delivered?
Yes. Many employees place a novated lease on order for a vehicle that hasn't arrived yet. Your employer and your lease provider need to be aligned on this, but it's a common arrangement for new model launches.
Does millarX handle Skoda novated leases?
Yes. millarX is ACL-licensed and can arrange novated leases across a wide range of makes and models, including new entrants like the Peaq once they're available to order in Australia.