BMW iX3 passes 3,000 Australian orders as proposed FBT change puts novated buyers on the clock
BMW Group Australia has taken more than 3,000 local orders for the new iX3 electric SUV, the first model from the brand’s Neue Klasse generation. Chief executive Vikram Pawah says demand has outstripped supply across both the rear-drive iX3 40 and the dual-motor iX3 50 xDrive.
The strong order bank comes with a catch for salary packagers. A proposed change to fringe benefits tax would remove the full exemption for electric cars priced above $75,000 from 1 April 2027, and the $89,900 iX3 40 sits right in that band. The change has been announced by the Federal Government but is not yet law.
BMW iX3 prices and specs in Australia
| Spec | iX3 40 | iX3 50 xDrive |
|---|---|---|
| Price before on-road costs | $89,900 | $109,900 |
| Drive | Rear, single motor | All-wheel drive, dual motor |
| Power and torque | 235kW and 500Nm | 345kW and 645Nm |
| Battery (usable) | 82.6kWh | 108.7kWh |
| WLTP range | 635km | 805km |
| Peak DC charging | 300kW | 400kW |
| Australian status | Due in showrooms this quarter | Deliveries under way |
Both grades share the same core equipment, including 20-inch M Sport alloys, a fixed panoramic glass roof, BMW’s Panoramic iDrive display with a 17.9-inch touchscreen and Harman Kardon audio. The $20,000 step to the 50 xDrive buys the bigger battery, the second motor and faster charging. BMW quotes a 10 to 80 per cent charge in about 21 minutes for the 50 xDrive on a 400kW charger.
What the proposed FBT change means
Under current rules, an eligible electric car is fully exempt from fringe benefits tax on a novated lease if it sits under the luxury car tax threshold for fuel-efficient vehicles, which is $91,661 for 2026 to 2027. The iX3 40 qualifies today when the usual lease conditions are met. The iX3 50 xDrive is already above the threshold, so its buyers are not affected by the change.
| Period (as proposed) | Treatment of eligible electric cars |
|---|---|
| Now to 31 March 2027 | Full exemption for eligible EVs under the luxury car tax threshold |
| 1 April 2027 to 1 April 2029 | Full exemption only at $75,000 or less, with a 25 per cent FBT discount above that up to the threshold |
| From 1 April 2029 | A 25 per cent FBT discount for all eligible EVs under the threshold |
The Australian Taxation Office says existing leases will not be affected, and that the measure is not yet law. What is less clear is how cars ordered before the deadline but delivered after it will be treated. Transitional protection has been offered for binding orders in the past, but nothing has been locked in this time, so the safest path is to have the car delivered and the lease in place before 1 April 2027.
Why timing is tight for the iX3 40
Dealers are reportedly telling new iX3 40 customers that cars due before 1 April 2027 are effectively spoken for, with the order book stretching into the second half of 2027 unless BMW secures extra supply from Germany. If that holds, a buyer ordering today may take delivery after the change starts and lose the full exemption, which can add thousands of dollars a year to the cost of a lease.
Pawah has ruled out repricing the iX3 to slip under the $75,000 cap, saying BMW does not intend to chop and change its model hierarchy because inconsistent pricing would hurt resale values. The upcoming electric i3 sedan, expected in the first quarter of 2027 from $96,900 before on-road costs, will also sit above the cap.
Options for novated lease buyers
If you want to keep the full exemption after March 2027, the closest BMW alternatives are smaller models such as the BMW iX1, though some of its variants also sit above $75,000. Our BMW iX1 price guide breaks down each grade, and the larger BMW iX remains the flagship SUV. Buyers prepared to look beyond BMW can compare sub-$60,000 choices in our best electric SUVs under $60,000 list.
Whichever car you choose, ask your lease provider to confirm in writing which FBT treatment applies and when the lease will start, because it is the start date of the arrangement, not the order date, that is expected to decide the outcome.
