Polestar 4 Gets a 2026 Update — Is It Worth Leasing?
The updated Polestar 4 is now available to order in Australia with a lower carbon footprint. Here's what PAYG employees should know about novated leasing one.
Polestar has released the latest version of its Polestar 4 electric coupé-SUV for Australian buyers, according to The Driven. The updated model carries a lower carbon footprint than its predecessor and is available to order now — while the brand has simultaneously been blocked from selling in the US market, making Australia one of the few places you can actually get one.
The Polestar 4 sits in an interesting spot: it's a premium EV from a Volvo-linked brand, designed to compete with the likes of the Model Y Performance and the BMW iX2. It's also the kind of vehicle that looks very different on your payslip when you run it through a novated lease — because EVs under the luxury car tax threshold currently attract zero FBT under the federal government's fringe benefits tax exemption.
What this means for novated lease customers
The FBT exemption for eligible battery electric vehicles remains one of the most significant tax concessions available to Australian PAYG employees right now. If the Polestar 4 variant you're looking at is priced under the luxury car tax threshold for fuel-efficient vehicles (indexed annually — check the ATO's current figure before you sign anything), it could qualify for zero FBT, which changes the economics of leasing it considerably.
That said, not every Polestar 4 configuration will necessarily sit under that threshold — trim level and options matter. Before you get attached to a spec sheet, get the driveaway price confirmed and run it past a proper novated lease calculation. The potential savings on an FBT-exempt EV are real, but the numbers depend heavily on your individual income, employer participation, and the final vehicle price.
Polestar's focus on a lower carbon footprint in this update is also worth noting for employees whose employers track Scope 3 emissions or have sustainability commitments — a greener manufacturing story can matter internally when getting sign-off on salary packaging arrangements.
Common questions
Is the Polestar 4 eligible for the EV FBT exemption in Australia?
Potentially yes — battery electric vehicles can qualify for the federal FBT exemption, provided the vehicle's driveaway price falls under the luxury car tax threshold for fuel-efficient vehicles. The exact threshold is indexed each financial year, so confirm the current figure with the ATO or your novated lease provider before ordering.
Can I novated lease a Polestar 4 if my employer hasn't done it before?
Yes. Your employer doesn't need prior experience with Polestar or EVs specifically — novated leasing is a standard salary packaging arrangement. millarX handles the setup, including the employer agreement, so there's minimal administrative burden on your HR team.
Does the lower carbon footprint of the updated Polestar 4 affect my lease terms?
No — residual values and lease structure aren't directly tied to a vehicle's carbon footprint. It's more relevant if your employer has sustainability reporting obligations or internal green-vehicle policies that could smooth the approval process.
What happens to my novated lease if Polestar exits the Australian market?
Your lease agreement is between you, your employer, and the finance provider — it's not contingent on the manufacturer remaining in market. That said, resale value and parts availability are real considerations for any brand with uncertain market presence, and worth factoring into your decision.
Is now a good time to lock in an EV novated lease?
The FBT exemption for EVs is current government policy, but it's not legislated in perpetuity — any future budget could amend it. Locking in while the exemption exists is a reasonable approach, but nobody can predict policy changes, so don't let urgency override a vehicle choice that doesn't actually suit you.