MG · hatch

MG4 Urban 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

$2,050 a year

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

Breakdown

Under $75,000MG4 Urban Essence 43

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

$2,050 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 $510 a year: $4,610 less over a 3-year lease.

908 days left to commit by 31 March 2029

$31,990

$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%	$2,050
Apr 2027 – Mar 2029	100%	$2,050
From Apr 2029	25%	$510

Reportable fringe benefits: about $12,070 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 MG4 Urban 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 MG4 Urban

MG prices the MG4 Urban drive-away only: $31,990 for the Essence 43 and $34,990 for the Essence 54 in New South Wales. Because those numbers include registration, stamp duty and CTP, the figure we test overstates the car's value, which at this price only makes the answer more certain.

The Urban is a different, smaller car from the MG4, not a trim of it. Its two versions differ in battery, 43 kWh or 54 kWh, and MG quotes 316 km and 405 km. The tables on this page use the drive-away price, so the real tax saving is a little lower than they show; ask the dealer for the price before government charges to tighten it.

MG ran an October 2026 cash-back on the Urban. Among the cheapest electric cars here it sits next to the BYD Atto 2 and Dolphin, and all three face the same FBT treatment, so the choice comes down to the car and the quote.

MG4 Urban variants against the lines

MG4 Urban 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 43	$31,990drive-away, NSW	Under $75,000	$2,050	$2,050	$510	MG, 3 Oct 2026
Essence 54	$34,990drive-away, NSW	Under $75,000	$2,240	$2,240	$560	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 43, by salary

Essence 43, $31,990

Salary	By 31 Mar 2027	Apr 2027 – Mar 2029	From Apr 2029	Missing the deadline, 3-year lease
$60,000	$2,140	$2,140	$540	$4,820
$90,000	$2,050	$2,050	$510	$4,610
$120,000	$2,050	$2,050	$510	$4,610
$160,000	$2,500	$2,500	$620	$5,610
$220,000	$3,010	$3,010	$750	$6,770

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

2,604 MG4 Urbans 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 MG4 Urban

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.