Tesla Model Y L: Is the $80k Seven-Seat EV Worth It on a Novated Lease?
The Tesla Model Y L just landed in Australia. Here's what PAYG employees need to know about leasing the 7-seat EV under the FBT exemption. Read on.
Tesla has expanded the Model Y lineup with the Model Y L — a stretched, seven-seat variant sitting at around $80,000 drive-away. According to The Driven's hands-on review (Source 1), it's positioned as the family EV the standard Model Y arguably should have always been. A third row, more cargo flexibility, and the same electric drivetrain — on paper, it ticks a lot of boxes for growing households.
But at $80k, the natural question isn't just "is it worth it?" — it's "is it worth it for me, and can I structure this purchase in a tax-efficient way?" If you're a PAYG employee, a novated lease is almost certainly the most cost-effective way to get into this vehicle.
What this means for novated lease customers
The Tesla Model Y L is a battery electric vehicle (BEV), which means it currently qualifies under the Federal Government's FBT exemption for eligible EVs — provided it sits below the luxury car tax (LCT) threshold for fuel-efficient vehicles. That threshold for the 2025–26 financial year is $91,387, meaning the Model Y L at approximately $80k should fall comfortably within the exemption at the time of writing. You should confirm the on-road price and applicable threshold at the time you sign, as both figures can shift.
What the FBT exemption means in practice: your employer pays the lease costs from your pre-tax salary, and because eligible EVs are exempt from fringe benefits tax, you don't get hit with the FBT bill that would normally accompany a novated lease on a petrol or hybrid vehicle. The result is a materially lower effective cost compared to buying the same vehicle outright with after-tax dollars — though the exact saving depends on your income, lease term, and residual. Use our calculator for a personalised figure.
One thing worth flagging: the Model Y L's higher price point means your monthly pre-tax deduction will be larger than on the standard Model Y. Whether that suits your cash flow is a personal call. It's also worth checking whether your employer's novated lease policy has a vehicle price cap — some do.
Common questions
Does the Tesla Model Y L qualify for the EV FBT exemption?
Based on its current price sitting below the fuel-efficient LCT threshold, it should qualify — but you must confirm the final drive-away price and the threshold applicable in your financial year before signing anything. millarX will verify this as part of your quote.
What's the difference between the Tesla Model Y and the Model Y L for novated lease purposes?
The Model Y L is a longer-wheelbase, third-row variant at a higher price point. Both are BEVs and both should be eligible for the FBT exemption, but the higher base price means larger pre-tax deductions and a higher residual value at lease end.
Can I include charging costs and running costs in my novated lease?
Yes. A properly structured novated lease includes a budgeted running cost component covering registration, insurance, servicing, and charging — all paid from pre-tax salary, which adds to the overall tax efficiency of the arrangement.
What happens if the LCT threshold changes and the Model Y L falls above it?
If the vehicle price exceeds the fuel-efficient LCT threshold at the time of delivery, it may no longer qualify for the FBT exemption. This is a genuine risk on vehicles priced close to the threshold — your millarX consultant will flag this before you proceed.
Is $80k too expensive to make a novated lease worthwhile?
Not necessarily. The FBT exemption applies regardless of price (up to the LCT threshold), and a higher-priced vehicle means there's more tax to save in absolute terms. Whether the repayments suit your budget is a separate question — one the calculator can help answer.