Leapmotor B05: Is This Budget EV Worth a Novated Lease?
The Leapmotor B05 is a budget Chinese EV finished in Italy — and it could be FBT-exempt on a novated lease. Here's what Australian employees need to know.
A new player is turning heads in the Australian EV market. The Leapmotor B05 — made in China, assembled in Italy via a partnership with Stellantis — has drawn early attention for being one of the more engaging Chinese EVs to drive, according to a hands-on review by EVcentral AU (Source 1). The 'Italian attitude adjustment' the review references isn't just marketing spin — Stellantis's involvement in manufacturing and tuning appears to have produced a car that punches above its price bracket.
For PAYG employees considering a novated lease, the headline here isn't just the driving dynamics. It's the word budget. A lower purchase price generally means a lower lease cost — and if the B05 qualifies as a zero or low-emissions vehicle under the current FBT exemption rules, the potential tax savings become even more relevant.
What this means for novated lease customers
Under current Australian tax law, eligible battery electric vehicles accessed via a novated lease can be exempt from Fringe Benefits Tax (FBT) — meaning the lease payments are funded entirely from your pre-tax salary. That's a material difference compared to financing the same car through a standard car loan. The B05 appears positioned as an affordable warm hatch, which is exactly the kind of vehicle that makes the FBT exemption work hardest for everyday employees — not just high-income earners chasing a premium badge.
That said, not every EV automatically qualifies for the exemption. The vehicle must meet the ATO's eligibility criteria, including a luxury car tax threshold check and confirmation it's a zero or low-emissions vehicle as defined under the Fringe Benefits Tax Assessment Act 1986. Until the B05 has confirmed Australian pricing and compliance status, treat any savings as potential rather than guaranteed. millarX will confirm eligibility details as they become available.
If the B05 lands at the price point the early coverage suggests, it could be one of the more accessible entry points into an FBT-exempt novated lease — particularly for employees who want a practical hatch rather than an SUV.
Common questions
Is the Leapmotor B05 available in Australia yet?
As of mid-2026, the B05 is generating early review coverage but has not yet officially launched with confirmed Australian pricing or delivery timelines. Check back as details are confirmed.
Would the Leapmotor B05 qualify for the FBT exemption on a novated lease?
Potentially — but eligibility depends on the vehicle meeting the ATO's zero or low-emissions vehicle criteria and falling under the relevant luxury car tax threshold. We can't confirm this until Australian pricing and compliance details are announced.
Does buying a cheaper EV make the novated lease tax benefit smaller?
A lower vehicle price means lower lease repayments, but the FBT exemption still applies to the full pre-tax treatment of those payments. The tax benefit scales with your income and the lease cost — your adviser can run the specific numbers for your situation.
What's the difference between a novated lease and a standard car loan for an EV?
With a novated lease, your repayments and running costs come out of your pre-tax salary, which reduces your taxable income. A standard car loan is paid from after-tax dollars, so you get no income tax benefit on the repayments.
Is Leapmotor a reputable brand?
Leapmotor is a Chinese EV manufacturer that has entered a major manufacturing and distribution partnership with Stellantis — the group behind Jeep, Peugeot, Fiat, and others. EVcentral AU's early drive review (Source 1) noted it as one of the better-driving Chinese EVs tested to date.