If you walked into a Geely showroom and compared the Starray EM-i with the fully electric EX5, the decision might initially look fairly straightforward.
Both are five-seat, front-wheel-drive SUVs from the same brand. Both offer generous interior space, modern technology, extensive safety equipment and electrified powertrains. And, importantly, they’re sitting within a few thousand dollars of each other on price.
The Geely Starray EM-i Complete PHEV has an on-road price of $40,877 in the novated lease quote supplied to Fleet Auto News, while the Geely EX5 Complete Extended Range EV is $45,500.
So the Starray is $4,623 cheaper. Surely that means it should also be cheaper on a novated lease? Not even close.
Once Australia’s Fringe Benefits Tax treatment of electric vehicles is applied, the numbers flip completely.
PHEV or EV? The ownership proposition is surprisingly similar
The Starray EM-i and EX5 approach electrification differently.
The EX5 is a battery electric vehicle, while the Starray combines an electric motor, battery and 1.5-litre petrol engine.
For the Starray Complete, Geely quotes an 18.4kWh battery, 83km of WLTP electric range and 943km of combined range. Move to the Inspire Extended Range and the battery increases to 29.8kWh, providing 136km of electric range and up to 996km combined.
That makes the Starray an appealing proposition for someone who wants to commute electrically but still likes having a petrol engine available for longer trips.
During our test, the Starray demonstrated exactly why PHEVs appeal.
Around town it can behave much like an EV: quiet, smooth and easy to drive. On our Sydney-to-Canberra run, once the battery had been depleted, we recorded approximately 5.2L/100km while travelling at motorway speeds.
The EX5 takes the next step and removes the petrol engine altogether.
For private buyers, that could make the choice largely about lifestyle. Can you charge at home? How regularly do you travel long distances? Do you prefer the security of having a petrol engine?
For novated leasing customers, however, there’s another question. How much does each vehicle actually take out of your pay? And that’s where things become interesting.
The cheaper car costs more each week
Summit Fleet Leasing and Management provided Fleet Auto News with quotes for both vehicles using the same basic assumptions: an $80,000 annual salary, NSW registration, a 48-month novated lease and 60,000 contracted kilometres.
Here’s what happens.
| Starray EM-i Complete PHEV | EX5 Complete EV | |
|---|---|---|
| On-road price | $40,877 | $45,500 |
| Amount financed | $37,364.33 | $41,579.24 |
| Vehicle finance rental/month | $679.85 | $756.54 |
| Weekly net cost | $242.07 | $188.08 |
| Fortnightly net cost | $484.15 | $376.16 |
| Monthly net cost | $1,048.99 | $815.01 |
| Estimated saving over lease | $12,216.41 | $24,162.57 |
The result looks almost backwards. The EX5 costs $4,623 more to purchase, and its vehicle finance rental is around $77 a month higher. Yet the EX5 has an estimated net cost of just $188.08 a week, compared with $242.07 for the Starray.
That’s a saving of $53.99 every week by choosing the more expensive EV. Or approximately $234 a month.
Thank FBT for the difference
This is where the Federal Government’s electric car FBT exemption becomes incredibly important when comparing vehicles for a novated lease.
Eligible battery electric vehicles can receive an exemption from FBT when the legislative requirements are met. The ATO also confirms that, from 1 April 2025, plug-in hybrids generally ceased to qualify as zero or low-emission vehicles for this exemption, except where transitional rules apply to certain existing arrangements. (Australian Taxation Office)
These novated quotes demonstrate the difference clearly.
For the EX5, the quote shows $0 FBT and $0 post-tax employee contribution. Its $14,382.48 annual leasing cost is shown as a pre-tax employee contribution.
The Starray is treated very differently.
Its quote shows an annual pre-tax employee contribution of $7,271.67 and an annual post-tax employee contribution of $7,643.16.
And that’s why concentrating solely on the vehicle’s purchase price can be misleading.
The Starray starts cheaper. It costs less to finance. But significantly more of its novated lease cost ultimately comes from post-tax income.
The EX5 starts dearer, but the tax treatment means more of its cost can be salary packaged pre-tax under this quote.
Running costs add another advantage
There’s another difference hiding inside the figures.
Summit’s Starray quote budgets $125 per month for fuel, while the EX5 quote allows $68.38 per month for charging.
That doesn’t necessarily mean every Starray owner will spend $125 a month on petrol.
A PHEV owner who plugs in every night and drives predominantly within the Starray’s electric range could potentially use considerably less petrol. Actual costs will depend on where and how the vehicle is driven and charged.
But it highlights an important part of the PHEV ownership equation: you need to plug it in to get the maximum benefit from owning one.
If you don’t, you’re carrying a battery and an electric drivetrain while continuing to buy petrol.
$12,000 versus $24,000 in estimated lease savings
Perhaps the most striking number is Summit’s estimated total saving over the four-year lease.
For the Starray EM-i, it’s $12,216.41. For the EX5, it’s $24,162.57. That’s a difference of $11,946.16.
It doesn’t mean everybody will achieve exactly those savings. Novated lease calculations depend on salary, kilometres travelled, vehicle price, finance, running-cost assumptions and an employer’s salary packaging arrangements.
But when the same salary, lease term and kilometres are applied to these two Geely SUVs, it provides a compelling demonstration of the impact of the EV FBT exemption.
The Starray still has a very good argument
None of this makes the Starray EM-i a poor choice. In fact, after spending time with it, there is plenty to like.
It’s a large, comfortable and well-equipped SUV for the money. The electric drivetrain makes urban driving smooth and quiet, while the petrol engine makes a Sydney-to-Canberra trip straightforward without needing to plan charging stops.
It also has technology such as wireless Apple CarPlay and Android Auto, connected services and OTA software updates, with Geely already using over-the-air updates to improve functions after customers have taken delivery.
For somebody buying privately, or somebody whose driving pattern makes a PHEV particularly suitable, the Starray deserves serious consideration.
But novated leasing creates a very different contest.
Forget the sticker price — compare the take-home pay
This comparison is a useful reminder of why buyers considering salary packaging shouldn’t simply walk around a dealership comparing windscreens.
At face value, you’d reasonably expect the $40,877 Starray to be cheaper to own than the $45,500 EX5.
Under these novated lease quotes, it’s the opposite.
- Starray EM-i: $242.07 a week.
- EX5: $188.08 a week.
That’s the power of the FBT exemption.
Two closely matched Geely SUVs can sit only a few thousand dollars apart in the showroom, yet produce dramatically different numbers once they’re put through a novated lease calculation.
The Starray offers the convenience of petrol and electric power in one vehicle. The EX5 asks you to commit completely to electric.
But if you can charge an EV and your lifestyle suits one, the novated leasing numbers make a very strong argument for skipping the petrol engine altogether.
