MG S6 Electric SUV — Is It Worth a Novated Lease?
The MG S6 EV is taking on Tesla Model Y and Kia EV5. Here's what Australian PAYG employees need to know about novated leasing it. Read the plain-English breakdown.
A new contender has arrived in the family electric SUV space. The MG S6 has been revealed as a family-sized electric SUV pitched directly against the Tesla Model Y and Kia EV5 — two vehicles that have already proven popular with Australian novated lease customers. According to The Driven's first-look coverage, the S6 is a walk-around-ready, production-intent model targeting the mainstream SUV segment.
For PAYG employees considering a novated lease, the timing is relevant. Under current Australian FBT legislation, eligible battery electric vehicles that fall below the luxury car tax threshold are exempt from fringe benefits tax when financed through a novated lease — meaning more of your pre-tax salary stays working for you. The MG S6, if priced competitively as expected, could sit comfortably within that exemption.
What this means for novated lease customers
The MG brand already has runs on the board in Australia — the MG4 has been one of the more accessible EV novated lease options on the market. The S6 steps up to a larger, more practical SUV body, which is exactly what a lot of families shopping in the Model Y segment actually want.
If the S6 lands below the luxury car tax threshold (currently $91,387 for fuel-efficient vehicles in 2025–26), it would qualify for the EV FBT exemption that the government has confirmed remains in place for eligible zero-emission vehicles. That exemption is the single biggest lever in a novated lease for an EV — it removes FBT from the equation entirely, which is what drives the potential savings versus buying the same car outright or on a standard loan.
Pricing and a confirmed on-sale date haven't been locked in yet, so it's worth watching closely. The competitive set — Model Y, EV5, BYD Sealion 6 — gives you a sense of where MG will likely need to land to be relevant. Once specs and pricing are confirmed, running a proper novated lease comparison across that shortlist is a smart move.
Common questions
Is the MG S6 eligible for the EV FBT exemption?
Eligibility depends on the final drive-away price falling below the relevant luxury car tax threshold and the vehicle meeting the zero-emission definition under Australian tax law. Until MG confirms Australian pricing, eligibility can't be confirmed — but based on MG's typical positioning, it's a reasonable expectation.
How does the MG S6 compare to the Tesla Model Y on a novated lease?
Both would potentially qualify for the EV FBT exemption if priced under the LCT threshold. The key differences will come down to purchase price, residual value projections, and running costs — all of which affect your fortnightly lease payment. A side-by-side quote is the only reliable way to compare.
When can I novated lease an MG S6 in Australia?
No confirmed on-sale date has been announced as of this writing. The Driven's first-look video indicates the vehicle is close to production-ready, so an Australian launch announcement is likely in the near term. We'll update this page when pricing lands.
Is MG a reliable choice for a novated lease?
MG vehicles are manufactured by SAIC Motor, one of the world's largest automotive groups. The MG4 has been in the Australian market long enough to establish a service network. As with any vehicle, residual value assumptions and service costs should be factored into your lease structure.
Do I have to choose an EV for a novated lease?
No — novated leasing works for petrol, hybrid, and diesel vehicles too. The EV FBT exemption just makes the numbers significantly more attractive for eligible zero-emission vehicles compared to non-exempt vehicles.