Skoda Peaq Electric SUV: What It Means for Your Novated Lease
Skoda's Peaq large electric SUV is coming to Australia. Here's what PAYG employees need to know about novating it under the EV tax exemption. Read more.
Skoda has announced pricing and specifications for its flagship Peaq electric SUV — a large, seven-seat EV that will compete directly with the Hyundai Ioniq 9 and Kia EV9 in the Australian market, and potentially take on higher-priced alternatives like the Volvo EX90. According to The Driven [Source 1], it's Skoda's biggest EV to date and a clear signal that the brand is serious about the family SUV segment.
For PAYG employees thinking about a novated lease, a new large EV entering the market is worth paying attention to — more competition generally means more choice, and the Peaq sits in a segment where novated leasing can genuinely make a material difference to your take-home cost.
What this means for novated lease customers
Australia's EV FBT exemption — which removes fringe benefits tax on eligible battery electric vehicles under the luxury car tax threshold — applies to EVs novated through your employer. The Kia EV9 and Hyundai Ioniq 9 are already on the radar of a lot of salary packagers for exactly this reason. The Skoda Peaq entering that same competitive space gives employees another credible large-SUV option to assess.
The key questions — final drive-away pricing in Australia, whether it lands under the LCT threshold, and an on-sale date — aren't fully confirmed yet. Based on the information available from The Driven [Source 1], Australian specs and pricing details are still emerging. That matters because the FBT exemption only applies to vehicles below the luxury car tax threshold (currently $91,387 for fuel-efficient vehicles in 2024-25). If the Peaq's Australian pricing lands above that line, the FBT exemption won't apply, which changes the novated lease calculus significantly.
Bottom line: watch this space. If the Peaq prices aggressively — the way Skoda typically does against premium German and Korean rivals — it could become one of the more compelling large EVs to novate.
Common questions
Can I novate a Skoda Peaq under the EV FBT exemption?
Potentially yes, but it depends on where Australian pricing lands relative to the luxury car tax threshold. If the drive-away price stays below $91,387 (the 2024-25 fuel-efficient LCT threshold), the FBT exemption should apply. Final Australian pricing hasn't been confirmed yet — check back once local specs are announced.
How does the Peaq compare to the Kia EV9 and Ioniq 9 for novated leasing?
All three are large seven-seat EVs competing in the same segment. The right choice depends on Australian pricing, your employer's approved vehicle list, and your personal preferences. Skoda's reputation for value pricing relative to spec level is worth watching when local numbers drop.
What is the EV FBT exemption and how does it work with a novated lease?
The FBT exemption means eligible battery electric vehicles novated through your employer are not subject to fringe benefits tax, which can meaningfully reduce your overall cost compared to buying the same car outright. The vehicle must be below the luxury car tax threshold to qualify.
When will the Skoda Peaq be available in Australia?
According to The Driven, Skoda has announced initial pricing and specs but a confirmed Australian on-sale date has not been published yet. We'll update this page as local details emerge.
Should I wait for the Peaq or novate a Kia EV9 or Ioniq 9 now?
That depends on your circumstances — lease timing, your employer's policies, and how urgently you need a vehicle. A millarX consultant can help you model the options once the Peaq's Australian pricing is confirmed.