Novated lease
MG4 Urban on a novated lease: what it really costs
Short answer: the MG4 Urban Essence 43 has a manufacturer's drive-away price of A$31,990, far below the A$91,661 threshold, so it qualifies for the EV FBT exemption. On our calculator's default assumptions, a 5-year novated lease works out at about A$526 a month before tax, reduces take-home pay by about A$270 a fortnight on a A$120,000 salary, and leaves a A$8,999 balloon. The longer-range Essence 54 is A$34,990 drive-away and about A$576 a month.
General information, not tax or financial advice. We don't recommend any lease provider.
General information, not tax advice. Rules change and your circumstances differ. Check the ATO sources linked here and speak to a registered tax agent or your employer's payroll team before you decide.
Price by variant and FBT status
| Variant | Drive-away price (MG) | Under A$91,661 FBT threshold? |
|---|---|---|
| MG4 Urban Essence 43 | A$31,990 | Yes |
| MG4 Urban Essence 54 | A$34,990 | Yes |
MG sells the MG4 Urban at a single drive-away price that includes 12 months' registration and CTP, maximum dealer delivery and estimated stamp duty (MG offers and terms; MG4 Urban configurator, checked 21 October 2026). MG's configurator didn't accept our 3162 postcode and showed the price for NSW delivery, but MG publishes the same drive-away figure nationally and reviewers quote it unchanged (Drive). Ask a Victorian dealer to confirm.
An electric car is exempt from FBT on a novated lease if its first retail price is below the luxury car tax threshold for fuel-efficient vehicles, which is A$91,661 for 2026–27 (ATO, LCT thresholds; ATO, Electric cars exemption). The MG4 Urban is also far under A$75,000, the proposed cap from April 2027 (not yet law; see what happens after March 2027).
Worked lease examples
These use exactly the same maths as our novated lease calculator: a standard loan formula on the full drive-away price, the ATO minimum residual (46.88% for 3 years, 28.13% for 5 years, ATO TD 93/142), 2026–27 tax rates plus the 2% Medicare levy, and no FBT.
Assumptions: interest rate 8% a year, running costs A$4,000 a year (rego, insurance, tyres, servicing and charging) packaged before tax. These are the calculator's default inputs, not a quote. Real providers add fees and usually finance the GST-exclusive price, so your quote will differ.
MG4 Urban Essence 43, A$31,990 drive-away
| Salary | Term | Lease payment (each month, before tax) | Take-home pay drop (each fortnight) | Balloon (residual) |
|---|---|---|---|---|
| A$80,000 | 3 years | A$632 | A$303 | A$14,997 |
| A$120,000 | 3 years | A$632 | A$303 | A$14,997 |
| A$180,000 | 3 years | A$632 | A$272 | A$14,997 |
| A$80,000 | 5 years | A$526 | A$270 | A$8,999 |
| A$120,000 | 5 years | A$526 | A$270 | A$8,999 |
| A$180,000 | 5 years | A$526 | A$242 | A$8,999 |
MG4 Urban Essence 54, A$34,990 drive-away
| Salary | Term | Lease payment (each month, before tax) | Take-home pay drop (each fortnight) | Balloon (residual) |
|---|---|---|---|---|
| A$80,000 | 3 years | A$692 | A$322 | A$16,403 |
| A$120,000 | 3 years | A$692 | A$322 | A$16,403 |
| A$180,000 | 3 years | A$692 | A$289 | A$16,403 |
| A$80,000 | 5 years | A$576 | A$285 | A$9,843 |
| A$120,000 | 5 years | A$576 | A$285 | A$9,843 |
| A$180,000 | 5 years | A$576 | A$256 | A$9,843 |
The take-home figure includes the A$4,000 of running costs, because those are paid from your pre-tax salary too. On a cheap car like this, running costs are a big share of the total, so a realistic running-cost budget matters more than the interest rate. A$80,000 and A$120,000 give the same result because both salaries stay in the 30% tax bracket after the deduction.
Run your own numbers: Essence 43, 5 years, A$120k · Essence 54, 5 years, A$120k.
Running costs
Home charging: MG claims 16.5 kWh/100 km for the Essence 43 and 16.1 kWh/100 km for the Essence 54 on the WLTP test; Drive saw as low as 13.5 kWh/100 km in its own testing (Drive). On OVO Energy's EV Plan at 4.5c/kWh from midnight to 6am in Victoria (OVO), the claimed figures work out at about A$0.74 per 100 km (Essence 43) or A$0.72 per 100 km (Essence 54). Supply charges and rates outside the window are extra. See EV electricity plans in Victoria compared.
What a lease package typically includes: rego and CTP, comprehensive insurance, servicing, tyres, roadside assistance and a charging or electricity budget, all paid from pre-tax salary. A home charger can often be packaged too. Our novated lease inclusions guide lists 25 items to ask about.
Key specs
| Essence 43 | Essence 54 | |
|---|---|---|
| Range (WLTP) | 316 km | 405 km |
| Battery | 43 kWh (LFP) | 54 kWh (LFP) |
| DC charging (peak) | 82 kW | 87 kW |
| AC charging | 6.6 kW | 6.6 kW |
| Power | 110 kW | 118 kW |
| 0–100 km/h | 9.0 s | 8.7 s |
Sources: MG4 Urban configurator (variant details), Gladstone MG (LFP battery chemistry), checked 21 October 2026.
MG4 Urban vs its nearest rivals
Lease figures use the same assumptions as above: 5 years, A$120,000 salary, 8%, A$4,000 running costs.
| Car | Drive-away price | Lease payment (each month, before tax) | Take-home pay drop (each fortnight) |
|---|---|---|---|
| MG4 Urban Essence 54 | A$34,990 (MG) | A$576 | A$285 |
| GWM Ora 5 LUX | A$33,990 | A$559 | A$280 |
| BYD Atto 2 Dynamic | A$35,438 | A$583 | A$288 |
| BYD Atto 3 Evo Dynamic | A$45,950 (VIC 3162, BYD) | A$756 | A$342 |
GWM and Atto 2 prices are from EV Price Tracker Australia (data updated October 2026), which doesn't state the state used, so treat them as a guide and check the maker's site for your postcode.
Deals
We only list deals we've verified, and MG isn't advertising a novated-lease-specific offer on the MG4 Urban. MG is running a general A$2,000 cashback that brings the drive-away price to A$29,990 (Essence 43) or A$32,990 (Essence 54), for cars sold and delivered by 31 October 2026 at participating dealers, while stocks last. The terms exclude fleet buyers and say it can't be combined with other offers (MG offers), so ask your provider whether it applies to a novated purchase. For other current verified offers, see our Deals page.
FAQ
How much is an MG4 Urban on a novated lease?
On our calculator's defaults (8% interest, A$4,000 a year running costs), an MG4 Urban Essence 43 at A$31,990 drive-away costs about A$526 a month before tax over 5 years, or A$632 a month over 3 years. On a A$120,000 salary, take-home pay drops by about A$270 a fortnight over 5 years.
What is the balloon payment on an MG4 Urban novated lease?
The ATO minimum residual is 28.13% of the price for a 5-year lease and 46.88% for 3 years. For the Essence 43 that's about A$8,999 (5 years) or A$14,997 (3 years).
Is the MG4 Urban FBT-exempt?
Yes. Both grades are far below the 2026–27 luxury car tax threshold for fuel-efficient vehicles of A$91,661, so they qualify for the EV FBT exemption on a novated lease.
Should I get the Essence 43 or Essence 54?
The Essence 54 costs A$3,000 more drive-away, which adds about A$50 a month to the lease payment over 5 years, and gives 405 km of WLTP range instead of 316 km.
Sources
- MG Motor Australia, MG4 Urban configurator (checked 21 October 2026): https://mgmotor.com.au/configurator/mg4-ev-urban
- MG Motor Australia, Offers and terms: https://mgmotor.com.au/offers
- Drive, 2026 MG 4 Urban review: https://www.drive.com.au/reviews/2026-mg-4-urban-review-australian-first-drive/
- Gladstone MG, MG4 EV Urban: https://gladstonemg.com.au/new-mg-mg4evurban/
- ATO, Luxury car tax rate and thresholds: https://www.ato.gov.au/tax-rates-and-codes/luxury-car-tax-rate-and-thresholds
- ATO, Electric cars exemption: https://www.ato.gov.au/businesses-and-organisations/hiring-and-paying-your-workers/fringe-benefits-tax/types-of-fringe-benefits/fbt-on-cars-other-vehicles-parking-and-tolls/electric-cars-exemption
- ATO, TD 93/142 minimum residual values: https://www.ato.gov.au/law/view/document?DocID=TXD%2FTD93142%2FNAT%2FATO%2F00001
- OVO Energy, The EV Plan: https://pages.ovoenergy.com.au/the-ev-plan
- EV Price Tracker Australia: https://evpricetracker.au/
- Image: Captainmorlypogi1959, Wikimedia Commons, CC BY-SA 4.0: https://commons.wikimedia.org/wiki/File:Morris_Garages_MG4_Urban_EV_2026_%281%29.jpg
Last checked: 21 October 2026. General information only, not tax, financial, legal or credit advice. We don’t recommend any provider; where businesses are named, it’s for information. See our affiliate disclosure.