Which PHEV under the FBT threshold should you buy?

Plug-in hybrid electric vehicle (PHEV) sales are booming in Australia, albeit from a lower base than hybrids and electric vehicles (EVs).

There’s also currently an incentive for buying a PHEV in Australia, though it depends on how you purchase it.

For now, if you’re buying a PHEV or EV under the Luxury Car Tax (LCT) threshold ($91,387) through a novated lease, you’re exempt from fringe benefits tax (FBT).

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Despite calls from industry experts for an extension, as it currently stands a PHEV will no longer be considered a zero- or low-emissions vehicle (ZLEV) from April 1, 2025, according to the Australian government, and hence won’t be exempt from FBT.

In the meantime, however, there are a few PHEVs on sale in Australia that meet the criteria.

Here are some of the contenders:

Alfa Romeo Tonale Veloce Plug-in Hybrid
BYD Sealion 6
Cupra Formentor VZe
Cupra Leon VZe
Kia Sorento PHEV
Mazda CX-60 PHEV
MG HS +EV
Mitsubishi Eclipse Cross PHEV
Mitsubishi Outlander PHEV

A number of other applicable models are being axed locally, with only dealer stock remaining. These include the Peugeot 308 PHEV and 3008 PHEV, as well as the 508 PHEV in both liftback and wagon guise.

There’s also the Volvo S60 Recharge T8 Black Edition, which is a special-edition that’s now only available if there’s dealer stock.

Below, the CarExpert editorial team has shared which PHEV under the FBT threshold they would buy.

Paul Maric: BYD Sealion 6

I think it’s hard to look beyond the Sealion 6 for value. It’s incredibly affordable for what it is and leaves you with enough space to go and buy another car before you get anywhere near the LCT spend cap.

There are some improvements required for the charging and PHEV logic, but it’s all stuff that can easily be addressed with over-the-air updates.

Interested in buying a BYD Sealion 6? Get in touch with one of CarExpert’s trusted dealers here

MORE: Everything BYD Sealion 6

Marton Pettendy: Kia Sorento PHEV

PHEVs are perfectly suited to Australia because the EV range of many of them is longer than most of our daily commutes, negating the need to fill them up during the week if they’re charged regularly.

They generally also have a longer total range than an equivalent EV or even diesel vehicle, making their total cost of ownership almost unbeatable – especially while they’re still exempt from FBT under a novated lease.

And when it comes to which is the best value, it’s a no-brainer. The Kia Sorento comes with a 68km EV range, 740km of total range and a circa-$80,000 list price, which is more than $10k under the PHEV FBT threshold and makes it the only large plug-in hybrid SUV to escape the ATO’s clutches.

But the Sorento PHEV not only offers more metal for your money than any other PHEV. It’s great to drive thanks to a class-leading local chassis tune, and is backed by first-class refinement and material quality, intuitive multimedia and safety tech, seven-seat flexibility and a seven-year warranty.

Interested in buying a Kia Sorento? Get in touch with one of CarExpert’s trusted dealers here

MORE: Everything Kia Sorento

William Stopford: Cupra Formentor VZe

The Mitsubishi Outlander PHEV is the most sensible option here, while the BYD Sealion 6 is among the most wallet-friendly, but the PHEV segment in Australia has some really exciting, left-field options.

The Peugeot 508 fastback and wagon are among the best-looking vehicles the French brand has ever introduced, both inside and out. Peugeot has been offering significant discounts, so if you can get a good deal on remaining stock it would help counteract concerns over resale value and make up for the sometimes frustrating tech.

The PHEV version of the Peugeot 3008 isn’t as pretty, but it’s still a sharp looker with an extremely stylish interior, and it also features more power and all-wheel drive.

Ultimately, though, I think my choice would have to be the Cupra Formentor VZe. I’ve experienced this powertrain in the Leon VZe and came away impressed, even though there’s an even longer-range PHEV powertrain coming next year.

The Formentor feels more like a hatchback to drive than an SUV, but it’s a little easier to get in and out of than the Leon and feels a little bit more spacious inside. It’s no less stylish, though, and feels a little more special than the similarly priced (if admittedly more practical) Outlander PHEV.

Interested in buying a Cupra Formentor? Get in touch with one of CarExpert’s trusted dealers here

MORE: Everything Cupra Formentor

James Wong: Peugeot 508 GT Sportswagon PHEV

It’s a shame that Australians have turned their backs on passenger cars, and as such led brands to omit car-based PHEVs in favour of electrified SUVs.

Yes it’s something of an orphan now that it has been dropped from the local lineup, but the Peugeot 508 is one of the most beautiful ‘station wagons’ you can buy.

A few years back I reviewed the ‘Fastback’ version with the plug-in hybrid drivetrain, and it was like driving a budget luxury car. It’s smooth, quiet, comfortable, and cuts a line in traffic.

Now, the RRP when it was officially on sale as a new vehicle was lofty, nearing the price point of a BMW 3 Series PHEV, but I imagine you could snag a good deal on a runout model. Vive la FRAAAAANCE!

Interested in buying a Peugeot 508? Get in touch with one of CarExpert’s trusted dealers here

MORE: Everything Peugeot 508

Jack Quick: BYD Shark 6

Although we don’t know exactly how much the BYD Shark 6 plug-in hybrid ute will cost just yet, the carmaker’s local distributor EVDirect has confirmed it will be under $60,000.

This is a huge deal given only a single range-topping Premium variant of the Shark 6 will be available from launch. At this price point it undercuts many mid-range turbo-diesel dual-cab utes, and comes close to what Mitsubishi is asking for the entry-level Outlander PHEV.

After a spending (an albeit brief) time behind the wheel of a pre-production Shark 6 prototype recently, I came away thoroughly impressed. It’s unlike any ute I’ve driven to date and is rather SUV-like in nature.

The interior is properly plush and there’s plenty of game-changing technology, especially in the ute space.

A feature of note is the vehicle-to-load (V2L) functionality. There are three 230V household power outlets in the tub (total output of 6.6kW), as well as a 10A outlet in the cabin that can be used to power any household appliance or power tool you like.

Interested in buying a BYD Shark 6? Get in touch with one of CarExpert’s trusted dealers here

MORE: Everything BYD Shark 6

Max Davies: Cupra Formentor VZe

Cupra appeals to me as one of the more interesting brands on the market right now, and the Formentor VZe is a good example of why.

One of the key drawcards is the way it drives, which as Will says is much more like a hatch than an SUV. The hybrid powertrain is quite peppy in sport mode too, not to mention the decent fuel economy you get as a product of the PHEV setup.

Then there’s the way it looks. The Formentor is already one of the better-looking cars in this category, with those aggressive shapes and lines showing off the bronze wheels and accents.

Its interior is stylish and spacious, while still retaining a degree of familiarity with its screens and minimal selection of buttons.

Sure, there may be more sensible choices out there, but the Formentor VZe doesn’t leave a lot to be desired.

Interested in buying a Cupra Formentor? Get in touch with one of CarExpert’s trusted dealers here

MORE: Everything Cupra Formentor

Jordan Mulach: BYD Sealion 6

Despite launching a few months ago, the BYD Sealion 6 is on track to pass the Mitsubishi Outlander as Australia’s favourite PHEV for the year, and you can see why.

A damn good powertrain, loads of tech and plenty of space make this one hell of a proposition, and BYD’s done well to branch out from just EVs to jump-start Australia’s PHEV sales.

While it’s not here just yet, the BYD Shark 6 is also a tantalising proposition, doing everything the Sealion 6 does but with bold ute looks. Could it be the perfect camping companion?

Interested in buying a BYD Sealion 6? Get in touch with one of CarExpert’s trusted dealers here

MORE: Everything BYD Sealion 6

Josh Nevett: Volvo S60 Recharge T8 Black Edition

This is a no-brainer for me, because the S60 PHEV stands out as one of my favourite cars that I’ve driven this year.

It’s a modern take on an old formula that seems to be going the way of the dodo – take a practical sedan body and inject it with equal doses of performance and luxury. Colour the whole thing black and you end up with one of the quickest leather lounges money can buy.

The headline numbers are impressive – 340kW, 709Nm, and a 0-100km/h sprint of 4.5 seconds. What’s more, you can complete the daily commute in EV silence.

Inside, the S60 is quiet and comfortable with user-friendly technology that’s likely to age gracefully.