Best luxury SUVs in Australia 2026: BMW, Audi, Lexus, Volvo and Porsche compared

The best premium SUVs in Australia in 2026, from the BMW X3 and Audi Q5 to the Lexus RX, BMW iX3, BMW X5, Volvo XC90 and Porsche Macan, with current pricing and our pick for every type of buyer.

By Varun Punyamurtula ·

New generation BMW X5 40 xDrive in green, front three quarter view (Image: BMW Group)

Luxury SUVs are the most hotly contested part of the premium market in Australia. Every brand has at least two, prices range from about $80,000 to well over $150,000, and the choice now includes petrol, diesel, hybrid, plug in hybrid and electric power.

We have sorted the field into clear categories so you can find the right one for your budget and needs, with current Australian pricing on every pick.

Quick answer: The best luxury SUV for most buyers is the BMW X3 20 xDrive, from $86,100 plus on road costs. The best value is the Audi Q5 from $81,000 plus on road costs. Want a hybrid that will run forever? The Lexus RX 350h. For a big five seater, the new BMW X5. The best electric luxury SUV is the BMW iX3 40, and the best to drive is the Porsche Macan.
New generation BMW X5 40 xDrive in green, front three quarter view (Image: BMW Group)

Our verdict in one line: you do not need to spend $150,000 to get a genuinely premium SUV, because the best mid size models now offer nearly everything the big ones do.

Best luxury SUVs at a glance

  • Best overall: BMW X3 20 xDrive, from $86,100 plus on road costs
  • Best value: Audi Q5 TFSI, from $81,000 plus on road costs
  • Best hybrid: Lexus RX 350h Luxury, from $93,550 plus on road costs (FWD)
  • Best electric: BMW iX3 40, from $89,900 plus on road costs
  • Best large five seater: BMW X5 40d xDrive, from $143,900 plus on road costs
  • Best seven seater: Volvo XC90 T8 plug in hybrid, from $120,990 plus on road costs
  • Best to drive: Porsche Macan 4 Electric, from $137,600 plus on road costs

Best overall: BMW X3 20 xDrive

The current X3 is roomier, better equipped and more modern inside than the car it replaced. The entry 20 xDrive uses a 2.0 litre turbo petrol with mild hybrid assistance and all wheel drive, and it rides and handles with the polish you expect from BMW.

BMW X3 20 xDrive medium luxury SUV (Image: Alexander Migl, CC BY-SA 4.0)
  • Price: from $86,100 plus on road costs. The 30e xDrive plug in hybrid and the M50 xDrive sit above it.
  • Why we pick it: the best balance of driving quality, technology and price in the class.
  • The catch: options and paint can push the price up quickly.

Best value: Audi Q5 TFSI

The new generation Q5 undercuts its German rivals while offering a modern cabin with big screens, a quiet ride and quattro all wheel drive in most versions. If you want a premium badge without paying top dollar, start here.

New generation Audi Q5 medium luxury SUV in blue (Image: Alexander Migl, CC BY-SA 4.0)
  • Price: from $81,000 plus on road costs (TFSI). The TDI quattro diesel is $87,600 plus on road costs and the e-hybrid plug in hybrid is $96,900 plus on road costs.
  • Why we pick it: the lowest entry price of the big three German brands in this class.
  • Also consider: the Mercedes-Benz GLC if you want the most luxurious cabin feel, though it costs more.

Best hybrid: Lexus RX 350h

Lexus has spent more than two decades refining hybrid luxury SUVs, and the RX is the result. It is quiet, smooth and efficient, and Lexus has a strong record for reliability and service.

  • Price: RX 350h Luxury from $93,550 plus on road costs (FWD) or $97,200 plus on road costs (AWD). The sportier RX 500h F Sport Performance is $131,100 plus on road costs.
  • Why we pick it: low running costs, excellent build quality and resale strength.
  • The catch: it is not as sharp to drive as the Germans and the touchscreen takes some learning.

Best electric: BMW iX3 40

The all new iX3 is the first of BMW's Neue Klasse cars, and it is a big leap forward. It has up to 635km of claimed range, very fast charging, and a striking new interior with a panoramic display across the base of the windscreen.

New 2026 BMW iX3 electric SUV in blue, front three quarter view, European model shown (Image: BMW Group)
  • Price: iX3 40 from $89,900 plus on road costs. The iX3 50 xDrive is $109,900 plus on road costs.
  • Why we pick it: long range, fast charging, five star ANCAP safety and a price that sits under the luxury car tax threshold for fuel efficient cars, which also helps on a novated lease.
  • Read more: our full BMW iX3 review.

Best large five seater: BMW X5

The new generation X5 arrives in the final quarter of 2026 with a much more modern interior and a choice of diesel, petrol and plug in hybrid power. It is the default choice in the large luxury SUV class for good reason.

New BMW X5 40 xDrive driving on a mountain road, front view (Image: BMW Group)
  • Price: X5 40d xDrive diesel from $143,900 plus on road costs. The X5 40 xDrive petrol is $145,900 plus on road costs.
  • Why we pick it: strong towing ability, a superb ride and plenty of space for five.
  • The catch: you are looking at well over $150,000 once on road costs and a few options are added.

Best seven seater: Volvo XC90

If you need a third row in a luxury SUV, the XC90 is still one of the most comfortable and family friendly choices. The calm Scandinavian cabin and strong safety focus suit families well.

  • Price: XC90 Plus T8 plug in hybrid from $120,990 plus on road costs. The Ultra T8 is $130,990 plus on road costs.
  • Why we pick it: seven seats, plug in hybrid efficiency and a relaxing drive.
  • Also consider: the Genesis GV80 for a well equipped alternative with a long warranty.

Best to drive: Porsche Macan Electric

The electric Macan is the sports car of luxury SUVs. Even the entry Macan 4 is very quick, and the steering and body control feel like a Porsche should.

Porsche Macan 4S Electric in Volcano Grey on display (Image: Damian B Oh, Wikimedia Commons, CC BY-SA 4.0)
  • Price: Macan 4 from $137,600 plus on road costs. The Macan 4S is $149,300 plus on road costs.
  • Why we pick it: the most engaging SUV to drive in this group, with strong electric range.
  • The catch: the price climbs fast with options, and the rear seat is tighter than an X5.

Which luxury SUV should you buy?

  • Best for most buyers: BMW X3 20 xDrive
  • Best for tight budgets: Audi Q5 TFSI
  • Best for reliability and low running costs: Lexus RX 350h
  • Best for home charging: BMW iX3 40
  • Best for towing and long trips: BMW X5 40d
  • Best for big families: Volvo XC90 T8
  • Best for keen drivers: Porsche Macan

Go for it if: you want comfort, safety and technology for long term ownership.

Skip it if: you change cars every two or three years. Luxury SUVs lose value quickly, so a demo or near new car can save you thousands.

At this price, the gap between the best deal and an average deal can be big. Tell us which luxury SUV you want and we will find the best price anywhere in Australia on a new, demo, near new or used one. Get the best deal.

Frequently asked questions

What is the best luxury SUV in Australia in 2026?

Our pick is the BMW X3 20 xDrive from $86,100 plus on road costs. It offers the best mix of driving quality, technology and price.

What is the cheapest luxury SUV from a German brand?

In the mid size class, the Audi Q5 TFSI starts at $81,000 plus on road costs, which undercuts the BMW X3 and Mercedes-Benz GLC.

What is the most reliable luxury SUV?

Lexus has the strongest reputation for reliability, and the RX 350h hybrid is our pick for owners who keep their cars for a long time.

What is the best electric luxury SUV?

The BMW iX3 40 from $89,900 plus on road costs, with up to 635km of claimed range. For a sportier drive, the Porsche Macan Electric.

Which luxury SUV has seven seats?

The Volvo XC90 is our pick, from $120,990 plus on road costs for the Plus T8 plug in hybrid. The Genesis GV80 and Mercedes-Benz GLE are other options.

Selling your current SUV? We can help you sell your car, and you can check what it is worth with our car value tool. Prefer a sedan? See our best luxury sedans guide. Compare all luxury brands in our guide to BMW, Mercedes or Audi.

Prices checked on 28 October 2026 against published Australian pricing. All prices are manufacturer list prices plus on road costs. Images: BMW Group and Wikimedia Commons contributors as credited.

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Tags: Family, BMW, Hybrid, Electric, Comparisons

Sources

  1. ANCAP safety ratings
  2. BMW Australia
  3. Audi Australia
  4. Lexus Australia
  5. Volvo Car Australia
  6. Porsche Australia

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