# BMW iX3 novated lease: what you need to know The iX3 is BMW’s electric mid-size SUV. As a premium car, its versions are likely to sit above the lower threshold from 1 April 2027, and some may be near the luxury car tax threshold, above which there is no exemption at all. This page covers what matters for a novated lease on the iX3, and the examples open it in the Navo engine for your figures. ## The short answer The BMW iX3 is a fully electric car, so on a novated lease it can be exempt from fringe benefits tax while its value is under the luxury car tax threshold for fuel-efficient cars. Under the changes announced in the May 2026 Budget (not yet law), from 1 April 2027 the full exemption is only for cars under a lower price threshold, with a partial discount above it, and from 1 April 2029 new arrangements get the partial discount. As a premium car, its versions are likely to be above the lower threshold, and some may be near the luxury car tax threshold. Check the exact version and its price first. Existing leases aren’t affected. ## The FBT position for the iX3 As a premium car, its versions are likely to be above the lower threshold, and some may be near the luxury car tax threshold. Check the exact version and its price first. Under the announced changes, a version under the lower threshold keeps the full exemption for commitments made before 1 April 2029. Above it, only commitments made before 1 April 2027 keep it; after that, a partial discount applies. These changes are not law yet. ## Novated lease or car loan for a iX3? Suits: Buyers wanting a premium electric SUV, and directors packaging through their own company. On an exempt electric car a novated lease often costs less than a loan, especially on higher incomes. A loan can still suit if your employer doesn’t package, your income is lower, or a job change is likely. ## What to check before you sign - The exact version and its drive-away price. - Where that price sits against the lower threshold and the luxury car tax threshold. - When you commit and when the car will be provided. - What happens to the lease if you change jobs. - The residual at the end, and what the car is likely to be worth. ## Worked examples Open an example in the Navo engine, add your own income, and see the figures for every way to pay. [Work it out](https://navo.au/#start). - **A BMW iX3 on a novated lease.** Salary packaging at work, owning the car at the end. Add the drive-away price of your version. - **A BMW iX3 with no packaging at work.** No salary packaging available: see the car loan. Add the drive-away price. ## Questions ### Is the BMW iX3 FBT exempt? Only if its value is under the luxury car tax threshold for fuel-efficient cars. Under the announced changes, from 1 April 2027 a car above the lower threshold gets a partial discount instead. Check the exact version’s price. ### Do I need my employer’s agreement for a iX3 novated lease? Yes. Your employer signs the lease agreement and runs the deductions through payroll. Any employer can, and our partner millarX can set it up with them. ### What if I change jobs during the lease? The lease can move to your new employer if they package it, or the payments come back to you. From 1 April 2029 a lease moved to a new employer may get only the partial discount. ## Related guides - [Buy an electric car now or wait? What the FBT changes mean for your lease](https://navo.au/guides/electric-car-buy-now-or-wait/) - [The electric car FBT exemption, explained](https://navo.au/guides/electric-car-fbt-exemption/) - [When a novated lease is not for you](https://navo.au/guides/when-a-novated-lease-is-not-for-you/) Reviewed 2026-10-07. --- General information only, not tax advice. Check the final law and ATO guidance; prices and versions change. Navo's results are general information and indicative only. They are based on what you tell us and our assumptions, are not a credit assessment, quote or tax advice, and don't take all of your circumstances into account. Credit is subject to the lender's criteria. Fees and charges apply. Navo is a trading name of Blackrock Leasing Pty Ltd ABN 15 681 267 818, Australian Credit Licence 569484.