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FBT Cliff

Kia · SUV

Kia EV5 novated lease and the FBT cliff

908days left to commit,
under the draft
Last day: 31 March 2029
  • Treasury draft · not law yet

Tax the exemption saves

$3,630 a year

Full exemption to 31 Mar 2029 under the draft. Estimate only. General information, not tax advice.

Breakdown
Under $75,000Kia EV5 Air Standard Range

Under the draft, the full exemption lasts for commitments until 31 March 2029.

$3,630 a year

Estimated tax the exemption saves you compared with a car that gets no FBT concession. Commit from 1 April 2029 and that drops to $910 a year: $8,170 less over a 3-year lease.

908 days left to commit by 31 March 2029

$56,770
$25,000$75,000$91,661$125,000+
Up to $75,000: full exemption for commitments until 31 Mar 2029$75,001 to $91,661: full exemption only if you commit by 31 Mar 2027Over $91,661: no FBT concession

Estimated tax effect by when you commit to the lease

If you commitDiscountFBT discountSaved a yearTax saved a year
By 31 Mar 2027100%$3,630
Apr 2027 – Mar 2029100%$3,630
From Apr 202925%$910

Reportable fringe benefits: about $21,420 a year would appear on your income statement if you commit by 31 March 2027. It isn’t taxed, but income tests such as HELP repayments and the Medicare levy surcharge count it.

Estimate only. General information, not tax advice. It uses 2026–27 tax rates and the FBT statutory formula, and assumes you pay an after-tax contribution to clear any FBT. The rules for commitments from 1 April 2027 are a Treasury exposure draft, not law, and may change. Confirm your numbers with your employer, your novated lease provider or a registered tax agent.

Updated 3 Oct 2026 · every figure links to its source · Some links are referral links; that never changes the order.

Every Kia EV5 is under $75,000: full FBT exemption on a novated lease committed to by 31 March 2029, under the Treasury draft.

$25,000$75,000$91,661$125,000+
Up to $75,000: full exemption for commitments until 31 Mar 2029$75,001 to $91,661: full exemption only if you commit by 31 Mar 2027Over $91,661: no FBT concession

What to know about the Kia EV5

The EV5 is Kia's best-selling electric car here, and its four versions climb from $56,770 for the Air Standard Range to $71,770 for the GT-Line on Kia's recommended retail prices before on-road costs. The GT-Line is the one to price carefully: it leaves just over three thousand dollars below the $75,000 line, and dealer delivery plus a paint or interior option could use that up. If the dealer's itemised figure, before registration and stamp duty, lands over the line, the car moves to the 2027 deadline.

The Air Long Range is the range pick of the four, quoted at 555 km against 400 km for the Standard Range, for a little over four thousand dollars more. Kia's build page was advertising drive-away prices well under these retail figures in October 2026. A dealer discount on the GT-Line does double duty: it cuts what you pay and pulls the car's value further from the line. Kia also lists a GT-Line Two-Tone at the same price as the GT-Line, so the paint choice doesn't change its band.

Kia EV5 variants against the lines

Kia EV5 at a $100,000 salary

VariantMaker's priceWhere it sitsBy 31 Mar 2027Apr 2027 – Mar 2029From Apr 2029Price source
Air Standard Range $56,770before on-roads Under $75,000 $3,630 $3,630 $910 Kia, 3 Oct 2026
Air Long Range $61,170before on-roads Under $75,000 $3,910 $3,910 $980 Kia, 3 Oct 2026
Earth $64,770before on-roads Under $75,000 $4,150 $4,150 $1,040 Kia, 3 Oct 2026
GT-Line $71,770before on-roads Under $75,000 $4,590 $4,590 $1,150 Kia, 3 Oct 2026
Estimated income tax and Medicare levy saved each year compared with a car that gets no FBT concession. “Close” means within $3,000 of a line, where dealer delivery, options or on-road costs can move the car across it.

Tax saved a year on the Air Standard Range, by salary

Air Standard Range, $56,770

SalaryBy 31 Mar 2027Apr 2027 – Mar 2029From Apr 2029Missing the deadline, 3-year lease
$60,000 $3,800 $3,800 $950 $8,560
$90,000 $3,630 $3,630 $910 $8,170
$120,000 $3,630 $3,630 $910 $8,170
$160,000 $4,430 $4,430 $1,110 $9,960
$220,000 $5,340 $5,340 $1,330 $12,010
The last column is the extra tax over a three-year lease from committing just after 31 March 2029 instead of just before. Salaries between $45,000 and $66,667 can show a slightly bigger figure than higher ones, because the low income tax offset phases out across that range.

Estimate only. General information, not tax advice. It uses 2026–27 tax rates and the FBT statutory formula, and assumes you pay an after-tax contribution to clear any FBT. The rules for commitments from 1 April 2027 are a Treasury exposure draft, not law, and may change. Confirm your numbers with your employer, your novated lease provider or a registered tax agent.

About these prices

  • 4,213 Kia EV5s were sold in Australia from January to August 2026. (CarExpert Sales Atlas, VFACTS and EV Council data, checked )
  • Kia's recommended retail price from its build page; the drive-away price it displayed in October 2026 reflected an offer. (Kia Australia, checked )
  • Prices are the maker’s own: before on-road costs. The value FBT uses includes dealer delivery and options but not registration, stamp duty or CTP.

Getting a quote for a Kia EV5

Check that your employer offers novated leasing, then ask a provider to quote the exact car, with delivery and options, and to confirm the date your commitment becomes binding. These providers offer novated leases; we list them alphabetically and don’t rank them.

We compare only the 5 providers listed here, not the whole market.

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