Leapmotor B05: Can This Budget Chinese EV Work on a Novated Lease?
The 2026 Leapmotor B05 is turning heads as an affordable EV option. Here's what Australian salary packagers need to know before signing anything.
A budget EV made in China and finished in Italy sounds like an unlikely combination, but that's exactly what the 2026 Leapmotor B05 is. EVcentral's brief drive calls it "one of the best driving EVs to come out of China to date" — high praise for a vehicle positioned at the affordable end of the market.
For PAYG employees considering a novated lease, a lower purchase price is genuinely interesting. Not because of marketing spin, but because the lease payments on a cheaper vehicle are smaller, and the pre-tax salary deductions that make novated leasing work are proportionally more impactful at lower income levels. A budget EV that still qualifies for the FBT exemption is worth a closer look.
What this means for novated lease customers
The key question for any EV and novated leasing is FBT exemption eligibility. Under current Australian tax law, battery electric vehicles under the luxury car tax threshold can be exempt from fringe benefits tax when held under a novated lease — meaning your employer doesn't pay FBT and your pre-tax deductions cover running costs too. That's the actual mechanism behind the savings people talk about.
The Leapmotor B05 hasn't launched in Australia yet, and pricing hasn't been confirmed locally. Before anyone gets excited, the practical checklist is: (1) Is it available from an Australian dealer? (2) Does the drive-away price sit under the relevant LCT threshold? (3) Can your employer's payroll system accommodate the brand? These aren't reasons to walk away — they're the questions a straight-talking broker should answer before you sign anything.
If the B05 lands at a genuinely accessible price point, it could be one of the more compelling novated lease candidates in the budget EV segment — a segment that has historically been thin on options.
Common questions
Is the Leapmotor B05 eligible for the EV FBT exemption?
Potentially — but eligibility depends on the final Australian drive-away price sitting under the luxury car tax threshold for fuel-efficient vehicles, and the vehicle being a battery electric or plug-in hybrid meeting ATO criteria. Pricing hasn't been confirmed locally, so this can't be locked in yet.
Can I novated lease a Chinese-made EV in Australia?
Yes. Country of manufacture doesn't affect novated lease eligibility in Australia — what matters is that the vehicle is registered in Australia and meets ATO requirements for the arrangement. Plenty of Chinese-origin EVs are already being leased through novated arrangements.
Does a cheaper EV mean the novated lease benefits are smaller?
Not necessarily smaller in impact — the FBT exemption and pre-tax running cost benefits still apply regardless of vehicle price. A lower-cost vehicle can actually make the arrangement more accessible for employees on moderate salaries.
What should I check before novated leasing a new-to-market EV brand?
Residual value assumptions matter a lot with newer brands — if the vehicle doesn't hold its value, you could face a balloon payment gap at lease end. A good broker will factor realistic residuals in, not just manufacturer-optimistic ones.
When will the Leapmotor B05 be available to lease in Australia?
No confirmed Australian launch date or pricing is available at the time of writing. We'll update this page when official details are released. Sign up or contact millarX to be notified.