MG · SUV

MG S5 EV novated lease and the FBT cliff

908days left to commit,
under the draft
Last day: 31 March 2029

Treasury draft · not law yet

Electric carVariant

Car’s value for FBT ($, incl. GST)Maker's drive-away price. Your value for FBT is lower: take off registration, stamp duty and CTP.

Salary ($ a year)Before tax and packaging, from $45,000.Lease term

How the estimate works

Without a concession, FBT’s statutory formula makes 20% of the car’s value taxable each year.
Novated leases clear that by moving the same amount from pre-tax to after-tax pay.
The saving is the 2026–27 income tax and Medicare levy you avoid on that amount.

Tax the exemption saves

$2,690 a year

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

Breakdown

Under $75,000MG S5 EV Essence 49 kWh

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

$2,690 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 $670 a year: $6,050 less over a 3-year lease.

908 days left to commit by 31 March 2029

$41,990

$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 commit	DiscountFBT discount	Saved a yearTax saved a year
By 31 Mar 2027	100%	$2,690
Apr 2027 – Mar 2029	100%	$2,690
From Apr 2029	25%	$670

Reportable fringe benefits: about $15,850 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 MG S5 EV 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 MG S5 EV

The S5 EV is MG's small electric SUV, priced drive-away in New South Wales at $41,990 with the 49 kWh battery and $46,990 with the 62 kWh battery. Drive-away figures include government charges that the FBT value leaves out, but here that changes nothing about where the car sits.

MG quotes 450 km for the larger battery and gave no range for the smaller one on its configurator, so we don't show one. MG was running a cash-back on the S5 in October 2026. Cross-shopping it with a Kia EV3 Air, both are well under every line and the reportable amount on your income statement will be similar, so the lease quote is what separates them. The larger battery costs five thousand dollars more; since MG gave no range for the smaller one, test-drive both before choosing on range alone.

MG S5 EV variants against the lines

MG S5 EV at a $100,000 salary

Variant	Maker's price	Where it sits	By 31 Mar 2027	Apr 2027 – Mar 2029	From Apr 2029	Price source
Essence 49 kWh	$41,990drive-away, NSW	Under $75,000	$2,690	$2,690	$670	MG, 3 Oct 2026
Essence 62 kWh	$46,990drive-away, NSW	Under $75,000	$3,010	$3,010	$750	MG, 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 Essence 49 kWh, by salary

Essence 49 kWh, $41,990

Salary	By 31 Mar 2027	Apr 2027 – Mar 2029	From Apr 2029	Missing the deadline, 3-year lease
$60,000	$2,810	$2,810	$700	$6,330
$90,000	$2,690	$2,690	$670	$6,050
$120,000	$2,690	$2,690	$670	$6,050
$160,000	$3,280	$3,280	$820	$7,370
$220,000	$3,950	$3,950	$990	$8,880

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.

About these prices

2,336 MG S5 EVs were sold in Australia from January to August 2026. (CarExpert Sales Atlas, VFACTS and EV Council data, checked 3 October 2026)
MG advertised a cash-back offer for October 2026; this is the price without it. (MG Australia, checked 3 October 2026)
Prices are the maker’s own: drive-away for NSW. The value FBT uses includes dealer delivery and options but not registration, stamp duty or CTP.

Getting a quote for a MG S5 EV

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.

Carbar (opens in a new tab) Referral link: we may earn a commission. It never changes the order.
Maxxia (opens in a new tab) Referral link: we may earn a commission. It never changes the order.
Oly (opens in a new tab) Referral link: we may earn a commission. It never changes the order.
RemServ (opens in a new tab) Referral link: we may earn a commission. It never changes the order.
Smart (opens in a new tab) Referral link: we may earn a commission. It never changes the order.

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