Tesla Model Y L: What the New Long-Range Means for Your Novated Lease
The Tesla Model Y L lands in Australia with V2L and a plushier cabin. Here's what PAYG employees need to know about leasing it under the EV FBT exemption.
Tesla has refreshed its best-selling SUV with the Model Y L — a longer, more premium version of the car that has dominated Australian EV sales charts for the past few years. According to a hands-on review published by The Driven on 19 June 2026 (Source 1), the Model Y L is the most versatile Tesla yet, and — critically for cost-conscious drivers — it finally ships with Vehicle-to-Load (V2L) capability.
For PAYG employees considering a novated lease, the headline question isn't "is it a nice car?" It clearly is. The real question is whether it still qualifies for the federal EV FBT exemption, and whether the numbers actually work in your favour.
What this means for novated lease customers
The EV FBT exemption — which removes Fringe Benefits Tax on eligible battery electric vehicles under the luxury car tax threshold — remains one of the most straightforward tax breaks available to Australian employees right now. If the Model Y L is priced under the relevant LCT threshold for fuel-efficient vehicles (check the current ATO threshold before signing anything), it could qualify, meaning you pay for the car entirely from pre-tax salary with no FBT added on top.
The addition of V2L changes the practical maths slightly. V2L lets you run appliances — or even another EV — directly from the car's battery. That's not a tax benefit, but it does change the total-cost-of-ownership conversation, particularly if you're pairing the vehicle with a home solar setup. Running costs and energy flexibility matter when you're locked into a three-to-five year lease.
One thing worth flagging: the Model Y L is a newer, larger variant, so its drive-away pricing may sit higher than the existing Model Y. Confirm the final on-road cost before assuming FBT exemption eligibility. millarX will confirm this for you as part of a quote — no assumptions baked in.
Common questions
Does the Tesla Model Y L qualify for the EV FBT exemption?
Eligibility depends on whether the vehicle's value falls under the ATO's luxury car tax threshold for fuel-efficient vehicles at the time of delivery. The exemption applies to battery electric vehicles that meet this threshold. Confirm the final drive-away price before assuming eligibility — millarX checks this as part of every quote.
What is V2L and does it matter for a novated lease?
V2L (Vehicle-to-Load) lets you draw power from the car's battery to run appliances or other devices. It doesn't directly affect your lease structure or tax treatment, but it can reduce your overall running costs — which do factor into a novated lease budget.
How is a novated lease different from just buying the Model Y L outright?
A novated lease lets you pay for the car — including running costs like charging, registration, and insurance — from your pre-tax salary. For eligible EVs, no FBT is added on top, which can represent meaningful potential savings depending on your income and tax bracket.
Can I novated lease a Tesla Model Y L if my employer isn't already set up with millarX?
Yes. millarX can work with most employers regardless of whether they have an existing novated leasing arrangement in place. We handle the paperwork with your employer's payroll team.
Is the existing Tesla Model Y still a better lease option than the Model Y L?
That depends entirely on the respective prices and your personal preferences. The standard Model Y has a longer track record on price and eligibility. The Model Y L offers more space and V2L capability but may sit at a higher price point. We'd run both scenarios side by side for you.