2026 MG S6: Is This Sub-$60K EV Worth a Novated Lease?
The 2026 MG S6 enters Australia's crowded sub-$60K EV SUV market. Here's what PAYG employees should know before putting it on a novated lease.
MG has launched the S6, a mid-size electric SUV pitched squarely below the $60,000 mark and aimed at taking market share from Tesla, BYD, Zeekr, and Geely — according to a June 2026 review by EVcentral AU [Source 1]. The S6 sits slightly larger than MG's existing S5, giving buyers more room without a dramatic jump in price.
For the average PAYG employee, that price point matters for one specific reason: the FBT exemption for eligible EVs. Under current legislation, battery electric vehicles under the luxury car tax threshold (currently $91,387 for fuel-efficient vehicles for 2024–25) are exempt from fringe benefits tax when held under a novated lease. A sub-$60K SUV fits comfortably inside that threshold.
What this means for novated lease customers
The MG S6's positioning in the sub-$60K bracket means it could be one of the more accessible FBT-exempt EVs available for salary packaging. You're not stretching to a Tesla Model Y or a premium BYD Seal — you're getting a mid-size SUV that, on paper at least, ticks the threshold box cleanly.
That said, the FBT exemption is only one part of the novated lease equation. The total cost of ownership — charging costs, insurance, residual value at end of lease, and how the vehicle holds its value in a fast-moving EV market — all factor into whether this stacks up for your situation. Chinese-brand EVs in particular are still proving their long-term residual values in Australia, which can affect your lease payments.
Bottom line: the S6 is worth a closer look if you want an FBT-exempt EV without paying Tesla or Zeekr prices. But do the numbers on your specific salary and lease term before committing.
Common questions
Does the 2026 MG S6 qualify for the FBT exemption on a novated lease?
Based on its sub-$60K pricing, the MG S6 should sit well below the luxury car tax threshold for fuel-efficient vehicles, which is the key eligibility hurdle for the FBT exemption. You'll want to confirm the exact drive-away price with a dealer before signing anything, as on-road costs can push the figure higher.
How does the MG S6 compare to a Tesla Model Y on a novated lease?
Both should be FBT-exempt under current rules, but the MG S6's lower price point means your pre-tax lease payments are likely to be lower. The trade-off is that Tesla has a more established residual value track record in Australia, which lenders factor into lease pricing.
Is MG a reliable brand to put on a novated lease?
MG (now owned by SAIC) has grown its Australian service network significantly and offers competitive warranty terms. That said, residual value projections for Chinese-brand EVs carry more uncertainty than established brands — something your novated lease provider should be pricing in honestly.
What's the difference between the MG S5 and the new S6 for leasing purposes?
The S6 is slightly larger than the S5 according to early reviews, which may affect insurance and registration costs included in a fully maintained novated lease. The price difference between the two models will also influence your salary packaging benefit.
Can I novate any EV under $60K or are there other conditions?
The vehicle must be a battery electric, plug-in hybrid, or hydrogen fuel cell vehicle, and it must be a new or used car first held and used on or after 1 July 2022. The ATO sets out the full eligibility criteria — your novated lease provider should walk you through these before you sign.