Which PHEV should you buy below the FBT threshold?

Sales of plug-in hybrid electric vehicles (PHEVs) are booming in Australia, albeit from a lower base than hybrids and electric vehicles (EVs).

There are currently incentives for buying plug-in hybrid cars in Australia, but it depends on how you buy.

Currently, if you buy a PHEV or EV under the Luxury Car Tax (LCT) threshold ($91,387) on a lease renewal, you’re exempt from the FBT.

Hundreds of new car deals available via car expert Now. Get the experts on your side and get big rewards. Browse now.

Despite calls from industry experts for an extension, plug-in hybrids will no longer be considered zero- or low-emission vehicles (ZLEV) from April 1, 2025, according to the Australian government, and therefore will not receive exemptions from FBT.

But in the meantime, there are some plug-in hybrid cars on sale in Australia that meet the standards.

Here are some contenders:

• Alfa Romeo Tonale Veloce plug-in hybrid
• Sea Lion World 6
• Cupra Formentor VZe
• Cupra Leon VZe
• Kia Sorento PHEV
• Mazda CX-60 PHEV
• MG HS+ electric car
• Mitsubishi Eclipse Cross PHEV
• Mitsubishi Outlander PHEV

Many other applicable models are being axed locally, leaving only dealer stock. These include the Peugeot 308 PHEV and 3008 PHEV, as well as the 508 PHEV in hatchback and estate forms.

There’s also the Volvo S60 Recharge T8 Black Edition, a special edition that’s only available now while dealers have stock.

under, car expert The editorial team shares which PHEV they would buy under the FBT threshold.

Paul Maric: BYD Hiace 6

I think it’s hard to look beyond Sealion 6 to find value. It’s very affordable and leaves you plenty of room to buy another car before you approach the LCT spending cap.

Charging and plug-in hybrid logic need some work, but these issues can be easily fixed with over-the-air updates.

Marton Petttendy: Kia Sorento PHEV

Plug-in hybrids are perfect for Australia as many of them have a range longer than most of our daily commutes and, if charged regularly, don’t need to be fully charged throughout the week.

Their total driving range is often longer than equivalent electric cars or even diesel cars, making their total cost of ownership almost unbeatable – especially if FBT is still exempt under a newer lease.

When it comes to which one is the most valuable, it’s a no-brainer. The Kia Sorento has an electric range of 68 kilometers and a total range of 740 kilometers, with a list price of about $80,000, more than $10,000 below the PHEV FBT threshold, making it the only large plug-in to escape the ATO’s control Hybrid SUV.

But the Sorento PHEV doesn’t just offer more metal than any other PHEV. The driving experience is exceptional, thanks to best-in-class local chassis tuning, backed by best-in-class refinement and materials quality, intuitive multimedia and safety technology, seven-seat flexibility and a seven-year warranty.

Interested in buying a Kia Sorento? Contact one of CarExpert’s trusted dealers here

More: Everything about Kia Sorento

William Stopford: Cupra Formentor VZe

The Peugeot 508 fastback and estate are among the most beautiful vehicles the French brand has ever launched, both inside and out. Peugeot has been offering deep discounts, so if you can pick up remaining stock at a good price, it will help allay concerns about resale value and make up for sometimes frustrating technical issues.

Although the PHEV version of the Peugeot 3008 is not as beautiful, it still looks sharp, has an extremely stylish interior, and also has more power and all-wheel drive.

But ultimately, I think my choice has to be the Cupra Formentor VZe. I experienced this powertrain in the Leon VZe and was impressed, although a longer-range PHEV powertrain will be launched next year.

The Formentor feels more like a hatchback than an SUV to drive, but it’s easier to get in and out of than the Leon and feels roomier inside. Still, it’s no less stylish and feels more special than the similarly priced (if admittedly more practical) Outlander plug-in hybrid.

Interested in purchasing Cupra Formentor? Contact one of CarExpert’s trusted dealers here

More: All About Cupra Formentor

James Wong: Peugeot 508 GT Sportswagon PHEV

Unfortunately, Australians have turned away from passenger cars, leading brands to abandon car-based plug-in hybrids in favor of electric SUVs.

Yes, the Peugeot 508 is something of an orphan now that it has disappeared from the local lineup, but the Peugeot 508 is one of the prettiest “station wagons” you can buy.

A few years ago I reviewed the “Fastback” version with a plug-in hybrid powertrain, and it was like driving an affordable luxury car. It’s smooth, quiet, comfortable, and reduces traffic congestion.

Now, the MSRP when the new car officially goes on sale is high, close to the price point of the BMW 3 Series PHEV, but I think you can get a good deal on the retired model. Enjoy the fragrance!

Interested in buying a Peugeot 508? Contact one of CarExpert’s trusted dealers here

More: Everything about the Peugeot 508

Jack Quick: BYD Shark 6

This is a big deal, as the Shark 6 will only be available in one top-tier premium version from launch. At this price point, it’s less expensive than many mid-range turbodiesel crew-cab pickups and close to what Mitsubishi is asking for the entry-level Outlander plug-in hybrid.

I recently spent some time (albeit a brief one) with a pre-production Shark 6 prototype, and I came away impressed. It’s unlike any ute I’ve driven to date, more like an SUV in nature.

The interior is very luxurious and has a lot of game-changing technology, especially in the pickup truck space.

One feature worth noting is vehicle-to-load (V2L) functionality. There are 3 230V household power sockets in the tub (total output 6.6kW) and 1 10A socket in the cabin to power any household appliances or power tools you like.

Max Davis: Cupra Formentor VZe

Cupra is one of the most interesting brands on the market right now that really appeals to me, and the Formentor VZe is a great example of that.

One of the key appeals is the way it drives, which, as Will puts it, is more like a hatchback than an SUV. The hybrid system is also very lively in Sport mode, not to mention good fuel economy from the plug-in hybrid setup.

Then there’s how it looks. The Formentor is already one of the better-looking cars in the category, with its aggressive shapes and lines showcasing bronze wheels and trim.

Its interior is stylish and spacious, while still retaining a level of screen familiarity and a minimal selection of buttons.

Of course, there may be smarter options out there, but the Formentor VZe doesn’t leave much to be desired.

Interested in purchasing Cupra Formentor? Contact one of CarExpert’s trusted dealers here

More: All About Cupra Formentor

Jordan Mulak: BYD Hiace 6

Josh Nevitt: Volvo S60 Recharge T8 Black Edition

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

It’s a modern take on an old formula that seems to be going the way of the Dodo – taking a utilitarian sedan body and infusing it with equal parts performance and luxury. Paint the whole thing black and you end up with one of the fastest leather lounges money can buy.

Overall figures are impressive – 340kW, 709Nm, 0-100km/h in 4.5 seconds. What’s more, you can complete your daily commute in the silence of an electric vehicle.

The S60’s interior is quiet and comfortable, packed with user-friendly technology, and will age gracefully.

Of course, the Volvo doesn’t corner like an M3, but in my opinion it’s the perfect performance all-rounder for daily driving.

Interested in buying a Volvo S60? Contact one of CarExpert’s trusted dealers here

More: All things Volvo S60