The Leapmotor B05: A Budget EV Worth Putting on a Novated Lease?
The 2026 Leapmotor B05 is a Chinese-made, Italian-finished warm hatch generating buzz. Here's what it means for novated lease buyers chasing value. Read on.
A budget EV that drives well is a rare thing. According to a recent hands-on review by EVcentral AU (Source 1), the 2026 Leapmotor B05 — made in China and finished in Italy via Stellantis — might be one of the best-driving EVs to emerge from China so far. That's a meaningful claim in a market that's seen a flood of competent-but-forgettable Chinese EVs land on Australian shores.
The B05 is positioned as a warm hatch: think practical size, everyday usability, and a price point aimed squarely at buyers who want an EV without stretching into Tesla or premium European territory. For PAYG employees thinking about a novated lease, that combination of lower purchase price and EV status is worth paying attention to.
What this means for novated lease customers
Here's why the Leapmotor B05 matters specifically if you're considering a novated lease. Under current Australian tax rules, battery electric vehicles priced below the luxury car tax threshold (which sits around $91,387 for fuel-efficient vehicles in 2025–26) can qualify for the FBT exemption for eligible employee use — meaning the fringe benefits tax that normally makes novated leasing a bit complicated gets removed from the picture entirely on qualifying EVs.
A lower-priced EV means a lower finance base, which generally means lower pre-tax deductions to cover your payments — and that's where the potential savings compound. You're not just avoiding FBT; you're doing it on a vehicle that costs less to begin with. The Leapmotor B05, if it lands at the price point being signalled, could sit comfortably inside that threshold and offer genuine running-cost efficiency on top.
That said, Leapmotor is still establishing its dealer and service network in Australia, and residual values for newer Chinese brands remain an unknown. That's a real consideration when structuring a novated lease, because your balloon payment at the end is tied to what the car is actually worth. We'd recommend getting a clear picture on resale data before committing.
Common questions
Does the Leapmotor B05 qualify for the EV FBT exemption in Australia?
If the B05 is a battery electric vehicle and its price sits below the luxury car tax threshold for fuel-efficient vehicles, it should be eligible — but final pricing hasn't been confirmed. Your novated lease provider should check eligibility once the vehicle is officially listed in Australia.
Is it risky to novate a lesser-known Chinese EV brand?
There's genuine uncertainty around residual values and parts/service availability for newer entrants like Leapmotor. That doesn't make it a bad choice, but it does mean you should factor in a conservative residual value when structuring the lease to avoid a nasty surprise at the end of term.
What's the advantage of novating a lower-cost EV versus a pricier one?
A lower purchase price means smaller pre-tax salary deductions to cover your lease payments, which can mean less disruption to your take-home pay. Combined with FBT exemption eligibility, budget EVs can deliver strong value on a novated lease — qualitatively, the savings potential is real.
When will the Leapmotor B05 be available in Australia?
No confirmed on-sale date has been announced for Australia as of mid-2026. The EVcentral AU review was based on a brief international drive. Keep an eye on official Leapmotor Australia channels for local launch details.
Can I use millarX to novate a Leapmotor vehicle?
millarX can novate most passenger vehicles available for sale in Australia. Once the B05 has a confirmed local price and delivery timeline, get in touch and we'll structure it properly.