Tesla Model Y L: Is Australia's $80k Seven-Seat EV Worth Leasing?
The Tesla Model Y L just landed with 7 seats and an ~$80k price tag. Here's what PAYG employees need to know about leasing it — and the FBT exemption angle.
The Tesla Model Y L has arrived in Australia, and it's making a lot of family-car buyers sit up. As reviewed by The Driven (Source 1), this stretched, seven-seat version of the Model Y carries an ~$80,000 price point — putting it firmly in the territory where a novated lease can genuinely shift the numbers.
Before anyone gets too excited: $80k is real money, and a novated lease isn't magic. What it is is a legitimate, ATO-sanctioned way for PAYG employees to use pre-tax salary to cover a car's lease payments and running costs. Whether it makes sense depends on your income, your employer, and — critically — whether the vehicle qualifies for the current EV FBT exemption.
What this means for novated lease customers
The Model Y L's eligibility for the EV FBT exemption is the headline question here. Under the current rules, a zero-emissions vehicle must sit below the luxury car tax threshold for fuel-efficient vehicles to qualify for the exemption — and that threshold sits well below $80,000. This means the Model Y L, at its current drive-away pricing, is likely to attract FBT rather than sidestep it entirely. That's not a dealbreaker, but it does change the maths compared to a base Model Y or other EVs priced under the threshold.
What a novated lease still does for a vehicle like this is let you use pre-tax dollars for the bulk of your repayments and eligible running costs — fuel (or charging), registration, insurance, and servicing. For a seven-seat family EV with higher-than-average running costs, that's a meaningful efficiency gain. The key is modelling it against your actual marginal tax rate rather than assuming the headline saving applies to you. That's exactly what millarX does before any deal goes forward.
Also worth noting: the seven-seat configuration may matter for your employer's packaging policy. Some salary packaging arrangements have restrictions by vehicle type — though passenger vehicles of any size are generally included. Confirm with your employer's HR or packager before you fall in love with the spec sheet.
Common questions
Does the Tesla Model Y L qualify for the EV FBT exemption?
Likely not at its current ~$80,000 price point. The EV FBT exemption only applies to eligible vehicles priced below the luxury car tax threshold for fuel-efficient vehicles. At the time of writing, the Model Y L appears to exceed that threshold, meaning standard FBT rules apply — not the exemption. Always verify current thresholds with a licensed adviser.
Is novated leasing still worth it for an EV above the FBT threshold?
Yes, it can be — the pre-tax treatment of lease repayments and running costs still delivers a real benefit for PAYG employees on higher marginal tax rates. It just won't be as dramatic as a fully FBT-exempt vehicle. The exact benefit depends on your salary, the lease term, and residual value.
Can I novate a seven-seat vehicle through my employer?
In most cases, yes. Seven-seat passenger vehicles are generally eligible under standard novated lease arrangements. Check your employer's salary packaging policy, as some employers impose their own vehicle restrictions.
How is the ~$80k price relevant to my lease payments?
The vehicle's drive-away price is one of the main inputs that determines your lease repayments. A higher purchase price means higher monthly costs — though the pre-tax efficiency of a novated structure still applies across the full amount.
What happens at the end of a novated lease on an EV?
At lease end you have three options: pay the residual and own the car outright, refinance the residual into a new lease, or sell the vehicle and use proceeds to settle the residual. EV residual values in Australia are still uncertain, so factoring in realistic resale projections matters — especially on a premium-priced vehicle.