2026 MG S6: Is This the Sub-$60K EV SUV Worth Leasing?
The 2026 MG S6 enters the value EV SUV fight below $60K. Here's what Australian PAYG employees should know before considering a novated lease.
MG has launched the S6, a mid-size electric SUV pitched below the $60,000 mark and aimed squarely at rivals like Tesla, BYD, Zeekr and Geely. According to the EVcentral review [Source 1], the S6 is slightly larger than the existing S5 and makes a clear play for the value-conscious end of the electric SUV market.
For context: the $60,000 price point matters in the novated lease world. Under the Treasury Laws Amendment (Electric Car Discount) Act, battery electric vehicles (BEVs) under the luxury car tax threshold — currently $91,387 for fuel-efficient vehicles — are exempt from fringe benefits tax (FBT) when held under a novated lease. A vehicle priced well under that ceiling means more of the financial structure works in your favour.
What this means for novated lease customers
The MG S6 slotting in under $60K puts it comfortably inside FBT-exempt territory. That's relevant because the FBT exemption is the core reason EVs on novated leases can produce meaningful pre-tax savings for PAYG employees — the vehicle's running costs (fuel, registration, insurance, servicing) are bundled into your pre-tax salary deduction without triggering an FBT liability.
A cheaper drive-away price also means lower GST payable on acquisition, and a smaller principal to finance — both of which reduce your fortnightly lease payment compared with pricier rivals. None of this is a guarantee of savings for your specific situation — income, marginal tax rate, state, and driving patterns all shift the numbers — but the pricing positioning of the S6 is structurally attractive for the novated lease use case.
It's also worth noting that Chinese-brand EVs at this price point have been moving fast off novated lease books over the past 18 months. BYD's Atto 3 and Seal have dominated sub-$60K EV novated enquiries. The MG S6 now gives employees another serious option to compare.
Common questions
Is the 2026 MG S6 FBT-exempt under a novated lease?
If the MG S6 is a battery electric vehicle (BEV) with a drive-away price below the luxury car tax threshold for fuel-efficient vehicles ($91,387 for the 2024-25 year), it should qualify for the FBT exemption under current legislation. Confirm the final drive-away price and vehicle classification with your novated lease provider before signing anything.
How does the MG S6 compare to a BYD or Tesla on a novated lease?
The comparison comes down to drive-away price, residual value assumptions, and your employer's approved vehicle list. A lower purchase price generally means a lower fortnightly payment, but residual values and insurance costs vary by brand. Run a proper quote across all three before deciding.
Can I novated lease any EV under $60K?
Your employer needs to offer novated leasing as a benefit, and the vehicle needs to meet ATO eligibility criteria for the FBT exemption. Most PAYG employees whose employers offer salary packaging can access novated leasing — but check your employer's specific policy first.
Does the FBT exemption for EVs have an end date?
As of mid-2025, the FBT exemption for eligible BEVs is legislated with no announced end date for new leases, but the government has flagged a future review. Leases entered before any legislative change are generally protected for their term — another reason not to wait too long if you're considering one.
What's the catch with cheap EVs from Chinese brands on a novated lease?
Residual values on newer Chinese-brand EVs are less proven than established brands, which can affect end-of-lease settlement costs. Some lenders also apply different residual value policies to these brands. millarX uses multiple funders including Pepper Money to find competitive terms — but it's a fair question to ask your provider upfront.