Lexus Australia has cut the price of its RZ electric SUV by up to $42,059, marking a reduction of just over 30 per cent on the outgoing RZ450e range. The updated model, now called the RZ500e, starts at $84,500 before on-road costs for the Luxury variant and $91,000 for the Sports Luxury.
Two of the three variants now sit under the Luxury Car Tax threshold for fuel-efficient vehicles. That makes the RZ500e Luxury and Sports Luxury eligible for the EV FBT exemption, opening them up to novated lease customers for the first time at a competitive price point.
New Pricing vs the Outgoing Range
The price cuts are significant across the board. The entry-level Luxury replaces the RZ450e Luxury with a saving of $36,559, while the Sports Luxury saves buyers $42,059. A new range-topping RZ550e F Sport is priced at $105,000 before on-roads and sits above the LCT threshold, making it the only variant ineligible for FBT exemption.
👉 Get a novated lease quote
Why Lexus Cut the Price
Lexus Australia CEO Jack Hobbs said the cuts reflect both improved manufacturing efficiencies and a shifting market.
"I think there's a number of contributing factors that go into the price repositioning in terms of battery technology and production efficiencies," Hobbs said. "Three years has been a long time, actually, and we've seen lots of improvements over that period."
Hobbs also pointed to a broader uptick in EV interest and global market changes as factors driving the repositioning. He stopped short of conceding the original pricing was too high, saying the new price reflects where the vehicle fits best in today's market.
The RZ did not find much of an audience at its previous prices. Just 41 were sold in 2025, compared to a combined 480 units across 2023 and 2024.
What's Changed: Specs and Features
The updated RZ500e is not just cheaper. It also delivers more performance and range than the model it replaces.
The dual-motor all-wheel drive system now produces 280kW, up 50kW on the outgoing RZ450e. Torque remains at 537Nm. The battery has grown from 71.4kWh to 74.7kWh, and WLTP range has increased 16 per cent to 460km. AC charging has been doubled to 22kW.
Lexus has also added additional body bracing, retuned front and rear dampers and springs, and made improvements targeting noise, vibration and harshness.
FBT Exemption and Novated Lease Eligibility
With the RZ500e Luxury and Sports Luxury now priced below the Luxury Car Tax threshold for fuel-efficient vehicles, both are eligible for the EV FBT exemption. This means eligible employees can package either variant through a novated lease without paying fringe benefits tax on the car.
The RZ550e F Sport at $105,000 sits above the LCT threshold and is not eligible for the exemption.
Lexus RZ Sales Performance
RZ sales dropped sharply last year. After 480 units across 2023 and 2024, just 41 found buyers in 2025. Hobbs said he expects the lower price to broaden the RZ's appeal, pointing to improving EV enquiry levels across the industry.
"There's been some global events that are reshaping the market, and certainly we've seen enquiries improve in BEVs, as well as plug-in hybrids and even hybrids," Hobbs said.
Platform Comparison
The RZ shares its platform with the Toyota bZ4X and Subaru Solterra. Both of those models also received price cuts with their latest updates, though the reductions were less substantial than those applied to the RZ.
About the author
Danny is a consultant and entrepreneur working at the cutting edge of the electric vehicle and energy transition. He is passionate about educating and helping consumers make better decisions through data.
