The Refreshed Xpeng G6 Is Coming — Is It Worth a Novated Lease?
Xpeng has refreshed the G6 electric SUV with upgraded powertrain and tech. Here's what Australian PAYG employees should know before signing a novated lease.
Australia's EV market just got a bit more crowded at the top. Xpeng has unveiled a significant refresh of its G6 electric SUV, directly targeting Tesla's Model Y — currently Australia's best-selling EV — with upgraded powertrain grunt and improved sensing systems, according to The Driven.
For most people, a new EV launch is just car news. But if you're a PAYG employee thinking about your next vehicle, a competitive EV market matters — more genuinely comparable choices means you're less likely to be talked into a vehicle that isn't right for you.
What this means for novated lease customers
The refreshed G6 enters a segment where novated leasing already makes a lot of sense. Under current federal legislation, eligible battery electric vehicles under the luxury car tax threshold are exempt from fringe benefits tax (FBT) when held under a novated lease — meaning your pre-tax salary covers the full running cost of the car, including fuel (charging), insurance, registration, and servicing.
The Xpeng G6 has previously sat below the FBT exemption price cap, though you should confirm the exact drive-away pricing of the refreshed model before assuming eligibility. That's not us being coy — it's genuinely the detail that determines whether you get the tax benefit or not, and pricing on new variants can shift.
What a stronger competitor to the Model Y does create is real negotiating leverage. When two comparable EVs are fighting for the same buyer, dealerships move. For novated lease customers, a lower drive-away price means a smaller finance amount, which reduces your overall cost of ownership — even before the tax treatment kicks in.
Common questions
Is the Xpeng G6 eligible for the FBT exemption on a novated lease?
Battery electric vehicles under the luxury car tax threshold for fuel-efficient vehicles are currently FBT-exempt under a novated lease. The G6's eligibility depends on its final drive-away price for the refreshed model — confirm this before proceeding, as pricing on new variants isn't always locked in at launch.
How does the Xpeng G6 compare to the Tesla Model Y for novated leasing purposes?
Both are electric SUVs competing in a similar price band, and both have previously qualified for the FBT exemption. The tax treatment is similar — the difference comes down to residual values, service costs, and your personal preference. Residual value assumptions affect your lease repayments, so it's worth modelling both.
Should I wait for the refreshed G6 before starting a novated lease?
That depends on your current vehicle situation and when the refreshed model actually reaches Australian dealerships. A launch announcement isn't the same as stock on the ground. If you need a car now, waiting indefinitely for a new variant is rarely worth it financially.
Can I novated lease a Chinese-branded EV like Xpeng?
Yes — the FBT exemption and novated lease structure are not brand-specific. What matters is that the vehicle is a battery electric vehicle, it's under the relevant price threshold, and it's a new or qualifying car. Your employer also needs to be willing to participate in the lease arrangement.
What running costs are covered under a novated lease for an EV?
A fully maintained novated lease typically bundles charging costs (treated like fuel), registration, insurance, tyres, and scheduled servicing into your pre-tax salary deductions. This is where a lot of the practical benefit sits, beyond just the FBT exemption itself.