Novated Lease Cost for a MG4 Urban
What a MG4 Urban costs from your pay through a novated lease, and how much you'd save compared with buying it yourself, at salaries from $80,000 to $150,000.
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Take-home pay reduction per fortnight. MG4 Urban Essence 43, from about $31,990 drive-away, prices vary by state. Source: The Beep, MG4 Urban pricing (March 2026).
About the MG4 Urban
The MG4 Urban is a smaller, front-drive hatch that sits alongside, and is cheaper than, the regular rear-drive MG4. MG prices it drive-away: the Essence 43 has a 43 kWh LFP battery and a claimed 316 km WLTP range, and the Essence 54 ($34,990 drive-away) has 54 kWh and 405 km. It was the number 15 best-selling electric car in Australia from January to September 2026, with 2,930 sales.
At $31,990, the MG4 Urban sits in the busiest part of the electric car market. You get back the GST of about $2,908 on the price, and the lease is small enough that the residual ($8,999 after 5 years) is easy to pay out or refinance. It's also under the $75,000 cap in the proposed FBT changes, so a new lease signed between 1 April 2027 and 1 April 2029 would still be fully exempt if the change becomes law.
MG4 Urban novated lease cost by salary
Over 5 years, with running costs of about $4,550 a year bundled into the lease.
| Salary | Pre-tax deduction a year | Take-home pay drop a fortnight | Buying it yourself a year | Saving a year | Saving over 5 years |
|---|---|---|---|---|---|
| $80,000 | $10,478 | $274 | $10,975 | $3,851 | $19,253 |
| $100,000 | $10,478 | $274 | $10,975 | $3,851 | $19,253 |
| $120,000 | $10,478 | $274 | $10,975 | $3,851 | $19,253 |
| $150,000 | $10,478 | $246 | $10,975 | $4,584 | $22,920 |
The saving grows with your salary because each pre-tax dollar saves your marginal tax rate: 30% plus Medicare between $45,001 and $135,000, and 37% plus Medicare above that. On $150,000 the MG4 Urban saves $4,584 a year, against $3,851 on $80,000.
Over 3 years
A shorter lease has higher payments but a bigger residual ($14,997 after 3 years) to pay or refinance at the end.
| Salary | Pre-tax deduction a year | Take-home pay drop a fortnight | Saving a year | Saving over 3 years |
|---|---|---|---|---|
| $80,000 | $11,647 | $305 | $4,342 | $13,025 |
| $100,000 | $11,647 | $305 | $4,342 | $13,025 |
| $120,000 | $11,647 | $305 | $4,342 | $13,025 |
| $150,000 | $11,647 | $273 | $5,157 | $15,471 |
The electric car FBT exemption
The MG4 Urban Essence 43 costs $31,990 drive-away, well under the 2026–27 luxury car tax threshold for fuel-efficient cars of $91,661, so it's exempt from fringe benefits tax when provided through a novated lease (for a car first held and used from 1 July 2022). The threshold is tested on the car's value including GST and options, but not registration or stamp duty, so most variants and option packs stay well clear of it. With no FBT, the whole lease and running costs can come from pre-tax pay, and the provider claims back GST on the price (up to $6,353) and on running costs.
The 2026–27 Budget proposed phasing the exemption down: from 1 April 2027 only cars costing $75,000 or less would stay fully exempt, cars between $75,000 and the threshold would get a 25% discount, and from 1 April 2029 every electric car would get a 25% discount. Existing leases wouldn't be affected. This isn't law yet. An exempt car still adds a reportable fringe benefit to your income statement, which counts for HECS-HELP, the Medicare levy surcharge and some payments.
Charging vs petrol
From its battery and WLTP range, the MG4 Urban uses about 13.6 kWh/100 km on the test cycle, or roughly 15.6 kWh/100 km in real-world driving. Driving 15,000 km a year and charging mostly at home, that's about $845 a year in electricity, against $2,194 for a petrol car using 7.5 L/100 km at $1.95 a litre: a saving of about $1,349 a year before the tax benefit. On an off-peak EV tariff or with solar, charging can cost much less.
MG4 Urban vs similar electric cars
| Model | From | Range (WLTP) | Per fortnight at $100k | Saving a year |
|---|---|---|---|---|
| MG4 Urban Essence 43 | $31,990* | 316 km | $274 | $3,851 |
| BYD Dolphin Essential | $29,990 | 340 km | $264 | $3,686 |
| Geely EX2 Complete | $26,490 | 252 km | $248 | $3,436 |
On a $100,000 salary, the BYD Dolphin would cost $10 a fortnight less than the MG4 Urban through a novated lease, and the Geely EX2 $26 a fortnight less. The MG4 Urban has a claimed 316 km WLTP range, against 340 km and 252 km. *Drive-away price. Compare all 15 electric cars.
Assumptions
Assumes a 5-year lease (3-year figures shown separately), 15,000 km a year, a 8.5% interest rate and $500 a year management fee (the calculator's defaults), the ATO minimum residual (28.13% at 5 years, 46.88% at 3 years, of the price less GST), and running costs of $3,700 a year for registration, insurance, servicing and tyres plus charging. Charging uses real-world energy use of WLTP figures + 15%, 85% home charging at 29c/kWh (plus 10% charging losses) and 15% public fast charging at 60c/kWh. Take-home pay uses 2026–27 resident tax rates with the Medicare levy and no HECS. "Buying it yourself" means a car loan at the same rate and term with the same balloon, paid from after-tax pay. Prices are list prices before on-road costs unless marked drive-away; your lease is usually based on the drive-away price, which is higher. Running costs for the MG4 Urban are $4,550 a year ($3,700 plus $845 charging).
Sources
- The Beep, MG4 Urban pricing: price and specifications (March 2026)
- The Driven: Australian EV sales by model, 2026
- ATO: luxury car tax rate and thresholds
- ATO: proposed changes to the electric car FBT discount
Frequently asked questions
How much does a novated lease on a MG4 Urban cost?
On a $100,000 salary, a 5-year novated lease on a MG4 Urban Essence 43 (from about $31,990 drive-away) would reduce your take-home pay by about $274 a fortnight, including running costs. That's about $3,851 a year less than buying the car with a loan from after-tax pay. On $150,000 it's $246 a fortnight.
Is the MG4 Urban FBT exempt on a novated lease?
Yes. At $31,990 it's under the 2026–27 luxury car tax threshold for fuel-efficient cars ($91,661), so it qualifies for the electric car FBT exemption. It's also under the $75,000 cap in the proposed changes from 1 April 2027.
How much does it cost to charge a MG4 Urban?
About $845 a year for 15,000 km, mostly charged at home at 29c/kWh, or roughly $6 per 100 km. A comparable petrol car would cost about $2,194 a year in fuel.
Prices as at October 2026; check with the dealer. Last reviewed October 2026. These are estimates for general information only, based on 2026–27 tax rates, and aren't financial or tax advice. Lease quotes vary between providers. Check figures with your employer's packaging provider or a licensed professional.