Australian real estate private credit is in a ‘wonderful position'
'Australian real estate private credit … is in a wonderful position,' Mr Andrews told Sky News Business Reporter Edward Boyd.
'We've seen sort of the market absorb the really high interest rate … over the last sort of four years.
'Borrowers are performing really, really strongly.'
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West Australian
14 minutes ago
- West Australian
Inheritance tax wake-up call for all expat Brits in Australia still with private pensions in the UK!
A major tax change in the UK could have serious consequences for thousands of British expats living in Australia with pension savings left behind in the old country. From April 2026, pension pots inherited after the age of 75 will no longer be tax-free for beneficiaries. Instead, they'll be taxed as income, at the recipient's marginal rate — potentially as high as 45 per cent.. And from April 2027, the UK is going a step further — pensions will be brought into the scope of inheritance tax, too. This 2027 change is a fresh move from the UK Treasury. Pensions, which were previously exempt from UK estate taxes, will now potentially face double taxation — income tax plus inheritance tax. If you're an Australian tax resident with a UK pension and you're assuming it'll all pass seamlessly to your family one day, then think again. Historically, UK defined contribution pensions — also known as 'private pensions' — were a handy estate planning tool. If the pension holder died before age 75, the entire pot could pass to beneficiaries tax-free, and even after 75 it was only subject to income tax when withdrawn. More importantly, pensions were excluded from the estate for UK inheritance tax purposes, meaning they avoided the UK's hefty 40 per cent estate tax altogether. But from April 2026, that income tax exemption ends for people who die over age 75. And from April 2027, the pension itself will be counted as part of the estate for inheritance tax purposes. The UK government has confirmed that from April 2027, defined contribution pensions will be reportable for inheritance tax, with the responsibility falling on executors. In some cases, families could have just six months to report and pay tax or face late penalties. If that sounds like a nightmare for grieving families navigating two tax systems, it's because it probably will be. In contrast, Australian superannuation is relatively generous when it comes to estate planning because: Adding further complexity is a lesser-known change to how the UK defines inheritance tax exposure. From April 6 this year, the UK moved to a residence-based system. If you've been a UK tax resident for 10 out of the last 20 tax years, you may be classified as a long-term resident and subject to UK inheritance tax on your worldwide assets. So, even if you've been living in Australia for years, you may still be caught by UK inheritance tax, because the new rules apply a 'tail' period of up to 10 years after you leave. For many, transferring UK pensions to Australia via a Qualifying Recognised Overseas Pension Scheme has for a long time — and in the right circumstances — made financial sense. It consolidates retirement savings, aligns your money with your tax residency and gives you more control. Now, with the emergence of this new tax regime, the argument for a transfer grows stronger. It also removes the burden from your family of having to deal with HM Revenue and Customs, complex executor responsibilities and international tax reporting. Of course, it's not always straightforward because: But with professional advice, the process can often be navigated smoothly and the long-term benefits can be significant. The UK's planned tax changes are a wake-up call for British expats in Australia because: So, if you have UK pension savings and live in Australia, it's time to reassess your strategy. A well-considered pension transfer, in the right circumstances and with the right personalised advice, could mean more of your hard-earned savings stay in the hands of your family — and not in the UK tax office. Nicholas Hart is a financial adviser and UK Pensions expert at Empire Financial Group
ABC News
2 hours ago
- ABC News
Do class actions really deliver justice?
Sam Hawley: On average, there's a class action launched in Australia every week. But do they really help bring justice to groups of Australians exposed to wrongdoing? Today, Anne Connolly on her Four Corners investigation into the class action traps leaving victims short-changed and lawyers richer. I'm Sam Hawley on Gadigal land in Sydney. This is ABC News Daily. Sam Hawley: Anne, in Australia, class actions have become pretty common, haven't they? It's a really important way to address injustices in this country. Anne Connolly: Well, yes, that's what class actions are designed to do. And I mean, when there were some really major catastrophes, such as the Victorian bushfires, the Queensland floods, class actions were taken to get some money back for those people. News report: Property owners around Horsham in Victoria have banded together to bring the first class action arising from the Black Saturday bushfires. Anne Connolly: Same with the pelvic mesh issue against Johnson & Johnson. News report: The federal court found Johnson & Johnson had been negligent and driven by commercial interest and ordered them to pay compensation. Anne Connolly: There's many, and they're very varied. Sam Hawley: Yeah, and you found during your Four Corners investigation, this is a billion dollar industry, but it's not always in favour of the individual victims. So to explain this further, why don't we look at a recent case, Anne, a legal fight between more than 8,000 Australian taxi drivers and Uber. Anne Connolly: Well, I mean, I think most people remember when Uber entered the market, obviously the taxi industry was absolutely decimated. They just couldn't compete any longer. One of the taxi owners I spoke to is a man called Stephen Lacaze. He said he had a licence in Queensland, which was at the time valued at about half a million dollars. It went to being virtually worthless once Uber came along. Stephen Lacaze, taxi owner: Oh, it was devastating. People virtually went into shock. Anne Connolly: So when Maurice Blackburn, which is one of the biggest class action firms in Australia, came along and proposed a class action, he was very keen to sign up. Stephen Lacaze, taxi owner: We were friendless. And here comes Maurice Blackburn with their Bradman-like batting averages, and their 'we fight for fair' banner, and we're there with bells on. Sam Hawley: OK, so Stephen was keen to fight this. Maurice Blackburn lawyers take it on, and they get a third party, a litigation funder, to pay the costs. Just explain how that works. Anne Connolly: Yeah, so what happens is Maurice Blackburn doesn't want to go this alone. So what they do is they engage somebody called a litigation funder. And litigation funders, they pay the lawyers' fees, they support them, and if they lose, they pay all of the costs, so there is some risk. But in return for taking that risk, they want a percentage of any payout that they win. So in this case, with Maurice Blackburn, they had a partnership with an offshore firm called Harbour Litigation Funding, which is actually registered in the Cayman Islands. It's a tax haven, and there's quite a few litigation funders in tax havens. Under this deal, they said, we want 30% of the proceeds. And Stephen signed up for that, as did most of the taxi drivers. Stephen said he did that because he thought they were going to get a payout worth billions because that's how much they'd lost. Sam Hawley: So in this case, Maurice Blackburn, the law firm, ends up settling this class action. So just tell me what happens then. Are the taxi drivers elated about this? Anne Connolly: Well, the night before the trial was due to start in March last year, Maurice Blackburn brokered a deal with Uber. That would be that Uber would pay $272 million in compensation. Now, once Harbour took its commission, that came out at $81.5 million. Maurice Blackburn took its legal costs, which came to $39 million. It means that the drivers were left with just over half the payout. Now, we don't know what individual taxi drivers will get. Stephen Lacaze believes he'll get about $20,000 once all of these fees and commissions come out of his payment, which he says is nowhere near what he lost. Sam Hawley: What did Maurice Blackburn have to say about that? Anne Connolly: They said the federal court had approved the settlement as fair and reasonable, and Harbour, the funder, said that the case was long-running and there were significant risks. Sam Hawley: Hmm, OK. So, Anne, that's the case of the taxi drivers against Uber, and we're going to talk about another really concerning case in a moment. But before we do, let's just look at the system more deeply. The worry here is that the whole class action system is set up to make profits for the law firms and the funders, but not deliver the justice to the victims, right? Anne Connolly: Well, there's some people who are concerned about that. I mean, the lawyers and the funders will say, without us, people would get nothing. The problem is that what's happening now is most people think a class action begins with a group of victims, but that's not really the case anymore. Now everything has changed because litigation funders have now entered the Australian market. So what happens is, it's the law firms and the litigation funders getting together and seeing, what are these issues that we could launch a class action on so that they can make money and then they can sign up the group members? So the concern is, are they really seeking justice for people or are they actually just finding a business opportunity so that they can make as much profit as they possibly can? Sam Hawley: Anne, let's now look at another case where the victims are left with, in comparison, petty change. Just tell me about Minnie McDonald. Anne Connolly: So Minnie McDonald is a woman in her 90s. She lives in Alice Springs and she was approached by Shine lawyers to become what's called the lead plaintiff in a class action in the Northern Territory for stolen wages of Indigenous workers who worked on cattle stations and missions for little or no money. Minnie McDonald, lead plaintiff: No shoes, get up in the morning, go to work. Come back afternoon, cold. Anne Connolly: So this case relates to the treatment of people like Minnie who, along with a lot of other... ..thousands of other Aboriginal men, women and children worked for little or no pay between the 1930s and the 1970s. Look, I just think, you know, one of the things I want to say about this is if ever there was a class action needed, perhaps it was in this particular case. I mean, there's questions about why the governments didn't just actually pay people what they deserved instead of being forced to court and forced to pay out compensation. But in any case, what Shine says and what the litigation funder says is we were doing our very best to get right a particular historical injustice. Sam Hawley: So the law firm Shine takes on this class action along with the litigation funder, Litigation Lending Services, and Minnie becomes the lead plaintiff. But the thing is, Anne, we know with legal cases, there's a lot of paperwork and Minnie had to sign a lot of that and she can't read or write. Anne Connolly: That's right, she can't read or write. So Minnie had her granddaughter Elizabeth to help her. However, Elizabeth does say, you know, it was complicated. It was difficult to understand at times. So Minnie did sign one document which said that Shine's costs had increased by $10 million and she signed off on that. I asked her about it and I asked her granddaughter if they remembered it. They didn't. I asked Shine, did they check that Minnie had the capacity to understand the complex legal and financial issues around class actions? They said being unable to read or write is no indication of intelligence and that they had an Indigenous barrister who helped to cross these cultural barriers and explain the process to them. Sam Hawley: So tell me what ended up happening with the case. Anne Connolly: So there were two class actions in WA and the NT and they both settled. So they didn't go to court. In Western Australia, there was a settlement for $180 million. In the Northern Territory, it was $200 million. Which sounds, you know, really positive. But what has to come out of that are the legal costs and the commission for the litigation funder. So they're not going to end up with that much. They'll end up with at least $10,000 and some will end up with more than that. Minnie McDonald, lead plaintiff: So somebody might... get a car and just take me for a picnic somewhere, you know, have a feed. But... I didn't get enough. Anne Connolly: You didn't get enough to buy a car? Minnie McDonald, lead plaintiff: Yeah, yeah. Nothing. Not enough. Anne Connolly: On the other hand, what's happened is Shine Lawyers is going to get about $30 million for its work. And the funder, Litigation Lending Services, they will take a commission of about $57 million. Sam Hawley: And you've had a really good look, haven't you, also, at the amount the law firm Shine was actually charging. Anne Connolly: Well, that's very interesting because Shine was roundly criticised in both WA and Northern Territory courts by the judges there. In one instance, Shine was charging for law clerks, charging them out at $375 an hour, even though many of them were unqualified uni students. They hired at least a dozen barristers that cost almost $3.5 million. One of those barristers charges almost $5,000 an hour. So, you know, the legal costs are the things that's really interesting. Sam Hawley: All right. So, Anne, the law firms and the funds are making a lot of money from these class actions in many cases. They do argue, as you mentioned, that they're actually giving people a chance to have these cases heard. What has Shine told you? Anne Connolly: Well, Shine said we were the only ones who were willing to take this on. We have given Aboriginal workers a chance to tell their stories. They've received compensation and they're being acknowledged for the historical injustices that they've suffered. And they said that these cases require experienced and well-resourced lawyers. And Litigation Lending Services, they said that they're proud of their involvement and that their commission was lower than the standard market rates because they wanted to reflect the social justice nature of these claims. Sam Hawley: And you spoke to the head of the Association of Litigation Funders. So this is a group that represents the firms that financially back these class actions, the funds. Its head is John Walker. So what's he had to say? Anne Connolly: Well, he said, look, you know, this is a market. This is a financial market that they operate in. They're trying to get some justice for people, but at the same time they're trying to make a profit and they don't shy away from that. John Walker, Association of Litigation Funders : We underwrite the project. We'll pay everybody if we lose, but in return, if we win, then we get a share of the recovery. We don't see it as gambling. We see it as investing. It's a market, and I don't step away from that. Anne Connolly: He essentially says, look, what we're doing is we're trying to correct the bad behaviour. Even if these class members are not getting enormous sums, it's sending a message to the big end of town that you can't operate in this way any longer. John Walker, Association of Litigation Funders : I'm absolutely proud of what's happened with class actions in Australia. They're absolutely essential to create accountability in respect of the big companies and governments. Sam Hawley: But, Anne, it does sound like a system that's not really working as it should. That is for the everyday people who need it. Anne Connolly: Well, I think what happens is a lot of people look at a class action sum and they believe that the sum that's been publicised is what people are getting. They don't realise that up to half of it can disappear in fees and commissions. The other point being the only class actions that actually get funded and get run are those that turn a profit. So when you're talking about others that might be very worthy, they won't get up if the bottom line doesn't look good. I think the problem arises when you're talking about people who have really suffered, such as these Aboriginal workers in the stolen wages cases who thought that they were going to get some proper compensation and what they're getting is simply a fraction of what they really deserve. And when they do see litigation funders and lawyers walking away with tens of millions of dollars, it makes it difficult for them to understand and sometimes it can feel like they've been exploited all over again. Sam Hawley: Anne Connolly is an investigative reporter with the ABC. You can see her Four Corners report on ABC TV tonight at 8.30pm or you can catch it on iView. This episode was produced by Sydney Pead. Audio production by Sam Dunn. Our supervising producer is David Coady. I'm Sam Hawley. Thanks for listening.
The Advertiser
4 hours ago
- The Advertiser
2025 Audi A5 Sedan TFSI 150kW review
Audi A5 Pros Audi A5 Cons The Audi A4 has been a staple of the German marque's range since the mid-1990s, and continued the lineage of the brand's mid-size premium sedan offering that dates right back to the '70s. But in 2024, after five generations of a very popular nameplate, Audi decided to throw out the A4 name and make the A5 the combustion-powered mid-size executive sedan and estate offering in its lineup. Yes, there was an A5 before it, but the previous generation was offered as a two-door coupe and cabriolet, as well as a five-door Sportback that was something of a four-door coupe-style liftback. Now though, the 'B10'-generation Audi A5 offers Sedan (liftback) and Avant (wagon) versions which effectively replace the old A4 Sedan and Avant, in addition to the previous A5 Coupe, Cabriolet and Sportback. Confused yet? The 2025 Audi A5 range is the first to ride on the brand's new PPC (or Premium Platform Combustion) architecture, which is an evolution of the ubiquitous MLB toolkit that has underpinned everything from the A4 to the Porsche Macan as far back as the late 2000s. Ushering in a new design language and the brand's latest in-car technologies, the A5 arrives as a rival to the A4's arch nemeses, the BMW 3 Series and Mercedes-Benz C-Class. In 2025, both are more niche offerings compared to their more popular SUV equivalents in Australia. Does the new A5 have what it takes to sway Australian buyers from BMW and Mercedes-Benz showrooms? We joined the Australian launch drive in Victoria to find out. The A5 range starts from $79,900 before on-road costs for the entry-level TFSI 150kW Sedan, which is about $9000 up on the previous A4's entry point, though the base A5 is specified more like a mid-range A4 which started at $82,000. At launch, just the A5 Sedan TFSI 150kW and the S5 range will be available, though Audi Australia has already confirmed four new grades of A5 for release in the third quarter, including a TFSI quattro 200kW and e-hybrid quattro 270kW. Both of these trim levels will be available in Sedan and Avant body styles, priced from $89,900 for the Sedan and $92,900 for the e-hybrid PHEV – yes, Audi has achieved price parity for the plug-in variant with more power. The addition of the e-hybrid models is also the first time Audi Australia has offered a PHEV in the mid-size passenger car segment. However, it's worth noting the Audi A4 became the first mass-produced hybrid from a European manufacturer way back in 1997, with a diesel-electric plug-in hybrid based on the B5-gen A4 Avant. To see how the Audi A5 lines up against the competition, check out our comparison tool The B10-gen A5 range ushers in a new design philosophy for Audi both inside and out, for better and for worse in your reviewer's opinion. Where Audi's previous A4 and its other MLB-based cars were lauded for their high-quality, classically laid out interiors; the new A5 and subsequent models are going hard on display tech, and reducing physical switchgear. The new 'digital stage' interior layout is headlined by the 11.9-inch Audi virtual cockpit plus (digital instrument cluster) and 14.5-inch MMI navigation plus infotainment touchscreen. This can be bolstered by an additional 10.9-inch passenger-side touchscreen in the A5 for an additional $1950 – like a Porsche. Compared to Audi's pared-back, fairly traditional cockpits of old, the new layout and interface can be a little daunting, even jarring. There's a lot of piano black in the bezels of the curved housing of the main driver displays, as well as the centre console, too. The interface is now powered by Android, which explains the smartphone-like widgets and app drawer. Audi says the software is fully tailored to the brand, and allows the installation of a wider set of in-car apps via the Audi Application Store as well as over-the-air software updates. While it's generally fairly usable and definitely not as fiddly as some other touch control-heavy interiors within the Volkswagen Group, the A5/S5's infotainment interface feels less conventional and less user-friendly than the previous generation of MMI. The displays offer beautiful clarity, brightness and graphics, though the widget-based menu structure isn't as clean as the tiled system it replaces and you will need to spend a bit more time learning where everything is. Unfortunately, Audi has also moved the A5 to touch-based climate controls, housed in a permanent virtual toolbar at the base of the central display. These aren't as user-friendly as even the clicky touch controls in larger vehicles like the Q7 and Q8, and feel like a step back. The toolbar is small relative to the available display real estate, as are the virtual buttons, meaning any quick changes while on the move require your eyes to be averted from the road and often result in a press of the neighbouring button or pressing it one too many times. I'm also not a big fan of the new multifunction steering wheel controls, which feel like a halfway house between Audi's old tactile physical buttons and the more fiddly touch-capacitive controls used in other VW Group models. They're not bad, but they're not great, either. Be prepared to have a microfibre cloth always at the ready too, because the glossy finish of the display and the swathes of piano black trim are a nightmare for fingerprints and smudges. But it's not all bad, I promise. Quick load times and gorgeously bright colours make these displays beautiful to look at, and while I miss the beautiful simplicity of the old Audi virtual cockpit layout, the new one with its central dial and adjustable side widgets make me feel like I'm wearing Iron Man's helmet. As you'd expect, the A5's infotainment fitout comes fully equipped with connected services, wireless Apple CarPlay and Android Auto, DAB+ digital radio, as well as native navigation with online mapping. As part of the optional $4900 premium package, the A5 is also available with a thumping 16-speaker Bang & Olufsen 3D audio system. At full blast this immersive in-car sound experience is fantastic – though if you turn the bass and subwoofer up too high I reckon it might feel too much like a nightclub. In the flagship S5, you can also opt for additional speakers built into the front head restraints for $980, bringing the speaker count to 20. The general feeling of quality is pretty good too, with a good mix of soft-touch and textured materials dotted throughout the cabin. While the base A5 doesn't get the all-out extended upholstery of the flagship S5, it's still a pretty nice place to spend time and doesn't feel as plasticky as the Mercedes-Benz C-Class, for example. Further back, there's good space for four adults, though the protruding rear centre console and raised centre seat cushion mean a full-size fifth passenger might only be a good idea on the odd occasion. Audi quotes a 77mm increase in wheelbase over the old A4, which opens up more leg and knee room for rear passengers. It can all feel quite closed in if you choose the standard black interior – I personally would be rushing to tick the pearl beige or nutmeg brown interior option boxes – and while the rear windows are decent in size, the rising shoulder line restricts outward visibility for shorter passengers. That said, you can really open up the cabin with the available panoramic glass roof, though you need to pay $4990 for the privilege. The optional roof also comes with what Audi calls 'switchable transparency', basically utilising similar tech to the Porsche Taycan whereby a liquid crystal sandwiched between two glass panels can be turned clear or opaque using electricity. That may all sound a little naff to you, but it removes the need for a conventional shade, which opens up more headroom while in theory offering similar if not better insulation from heat and UV rays. Rear climate controls and USB-C charge ports add to the back-seat amenity, and there are your requisite ISOFIX and top-tether anchors for child seats should you need them. Fun fact? The rear USB-C ports can output 100W to charge larger devices like laptops should you need the extra juice, too – provided you tick the $4990 Premium package. Despite being marketed as a 'Sedan', the Audi A5 is actually a liftback. This makes for a very wide and practical boot opening, which opens up to a 445-litre cargo area in base trim – and expands to 1299L with the rear seats folded. As is seemingly customary in most premium products these days, particularly European ones, there is no spare tyre – just a repair kit. To see how the Audi A5 lines up against the competition, check out our comparison tool At launch, just the 150kW 2.0-litre turbo-petrol and the 270kW 3.0-litre V6 turbo-petrol engines are available, the latter with Audi's new MHEV plus 48V mild-hybrid system. Overseas, there are also MHEV plus-equipped TFSI petrol and TDI diesel variants, and Audi's local product team has left the door open to offering more mild-hybrids here, though it hasn't confirmed when we might see them. Speaking of, the MHEV plus tech is effectively an extended 48V mild-hybrid system that can drive in EV mode unassisted at low speeds, like when crawling in traffic or rolling in carparks. Audi says official combined-cycle testing shows the system can save 0.74L/100km of fuel – likely more in stop-start traffic than in the real world. The system consists of an 18kW motor/generator mounted to the S tronic dual-clutch transmission, powered by a 1.7kWh lithium-ion battery pack. Audi claims its MHEV plus tech boosts performance and cuts turbo lag, in addition to the fuel savings that result from this. Following the initial launch, Audi Australia has confirmed it will release the TFSI 200kW quattro and e-hybrid 270kW quattro variants, both of which will be available in sedan and wagon body styles. The latter is the first plug-in hybrid Audi in the mid-size passenger car segment, and claims to offer just under 90km of WLTP-certified driving range while being about half a second slower from 0-100km/h than the hi-po S5. To see how the Audi A5 lines up against the competition, check out our comparison tool Our launch drive started at the Melbourne Airport north of Victoria's capital and headed out to Mount Macedon. A second transit leg in the A5 brought us back to the airport from the town of Trentham, also in Victoria's north-west. I drove a bog-standard A5 Sedan TFSI 150kW for the first leg, then spent the return trip in a highly optioned example with both the Style ($3900) and Premium ($4900) packages, the former including larger 20-inch wheels. Setting off from Melbourne in the base variant with 19-inch rims and chubbier tyres, the A5 Sedan proved to be a very refined and unassuming commuter that gets things done without much fuss. The 150kW 2.0-litre turbo-petrol engine offers all 340Nm of its torque from 2000rpm, and the seven-speed dual-clutch auto is one of the best of the breed. There's minimal engine noise unless you absolutely wring its neck, and performance is responsive and linear. Audi quotes a respectable 7.8-second dash from rest to 100km/h, but its real strength is muscular acceleration once you're already rolling. Given the A5's 2.0-litre turbo mill from the EA888 family is the same base engine as seen in the likes of the Volkswagen Golf GTI and R, it's no wonder the effortless yet punchy performance has a familiar feel to it. The ubiquitous power unit has been honed and refined over nearly two decades and it shows. Sadly, it doesn't have the new fuel-saving 'MHEV plus' 48V mild-hybrid tech like the Q5 mid-size SUV with the same engine, though Audi has hinted that this will eventually be added to the A5 at some point. While a 0.74L/100km saving on the combined cycle doesn't sound like much (based on the S5's V6 TFSI with MHEV plus), you'd see greater efficiency gains in stop-start city driving, as well as the ability to coast in EV mode when off the throttle or rolling along in low-speed traffic or car parks. The seven-speed 'S tronic' dual-clutch automatic is also one of the best in the business. You rarely get those moments of hesitation off the line like with DSGs of old, and while there's the odd elastic feeling as it shifts from first to second it's generally a very smooth and snappy gearbox. It's also not a thrashy or unrefined powertrain when pushed, with a muted and raspy note permeating the cabin under hard acceleration. The standard steering-mounted paddle shifters also allow you to take control of the gears yourself, should you desire – and it's generally very snappy and responsive here as well. Once the road gets a little twistier, you might be surprised by even the standard A5's cornering capability, even without quattro all-wheel drive and irrespective of the specified wheel and tyre package. This evolution of the VW Group's MLB platform has retained the sure-footed feel of its predecessors, thanks to a wider and lower-slung stance combined with pointy steering response. Even this base car is a bit of fun to sling through a succession of B-road bends. However, in both the A5 and S5, I felt there was something lacking in the steering feel, even with the Audi drive select system set to the sportiest driving mode. It just lacks the feel and feedback to make this a properly engaging drive, which is a shame given any 3 Series or even the electric BMW i4 Gran Coupe gives you more of a connection to the front axle. Particularly when trying to drive it harder, it feels too light and assisted to give you proper satisfaction through bends. Still, the quick response and keen handling makes up for that somewhat, and this is really only a criticism if you're a keen driver that holds these sort of qualities as a high priority. It rides well too, regardless of the wheels chosen, despite rolling on passive steel springs. In typical Audi fashion it errs on the firmer side which keeps the body fairly flat in corners and communicates the road surface and its imperfections, but even on patchy regional tarmac it rarely felt harsh or unsettled. As for driver assistance systems, which are typically an Audi strength, the A5 and S5 range is just about fully featured, with the exception of a lane centring system, which is notably absent from all PPC and PPE (EV) products Down Under. While the standard adaptive cruise control does a good job, as do the usual lane-keep assist and blind-spot/rear cross-traffic alert systems, the lack of semi-autonomous highway driving functionality seems odd – especially from a tech specialist like Audi. The brand's local product team has indicated the tech is still under development for Australia, which has various region-specific elements including lane markings, and will be rolled out ex-factory alongside other features potentially as soon as model year 2026 production, which starts later this year. It's understood most vehicles already in Australia should be fitted with the required hardware for these systems, meaning these systems should be retrofittable in existing customer cars at dealer level via a software update at some point in the future. To see how the Audi A5 lines up against the competition, check out our comparison tool Three distinct trim levels are available at launch, including the S5 edition one that's more of a pared-back 'purist' variant. It will be effectively replaced by the TFSI 200kW and e-hybrid 270kW quattro variants later this year. 2025 Audi A5 TFSI 150kW equipment highlights: A5 TFSI 200kW quattro adds: A5 e-hybrid 270kW quattro adds: To see how the Audi A5 lines up against the competition, check out our comparison tool There are a few key packages and single-item options available for the A5. Style package: $3900 Premium package: $4900 Single item options include: To see how the Audi A5 lines up against the competition, check out our comparison tool Since launch, the Audi A5 range has been awarded a five-star ANCAP safety rating, based on Euro NCAP testing. Standard safety equipment across the range includes: To see how the Audi A5 lines up against the competition, check out our comparison tool The A5 and S5 range is covered by Audi Australia's five-year, unlimited-kilometre warranty. Roadside assistance is included for the duration of the warranty period, too. To see how the Audi A5 lines up against the competition, check out our comparison tool The new A5 Sedan doesn't necessarily break the premium executive mould, but in the Australian market at least it makes a very strong value case against its direct German rivals. Mid-size premium sedan buyers can get a lot more for their money with Audi's new entrant, which starts nearly $10,000 under than the most affordable C-Class and $15,000 below the cheapest 3 Series. The strong value equation is bolstered by sharp looks, a tech-laden cabin and keen but not class-leading driving dynamics all are big ticks. While it lacks any form of electrification (at least for now), the base powertrain also has plenty of go and is quite refined, too. I personally am not hugely happy with the increased application of gloss black trim and the reduction in physical, tactile Audi switchgear, nor did I particularly take to the light, overly assisted feel of the steering. That said, a lot of that is down to personal preference. And while base pricing is very competitive, tick the two available main option packages and you're looking at nearly $90,000 before on-road costs for a well-optioned base model, which is nevertheless still cheaper than entry-level versions of its BMW and Mercedes-Benz rivals. I'd pass on the Style package, but I reckon the $4900 Premium package is a must-have. You also don't need the optional passenger display, but the (expensive) $4990 sunroof with high-tech shade will no doubt have high uptake. All told, in a segment that has been in decline for some time and could almost be regarded as 'niche' in 2025, the accomplished new Audi A5 shapes as a more value-driven alternative to its German competitors. If you're not fussed on electrification, the base petrol A5 is a very capable executive sedan (or liftback). CarExpert can save you thousands on a new Audi A5. Click here to get a great Explore the Audi A5 showroom Content originally sourced from: A5 Pros Audi A5 Cons The Audi A4 has been a staple of the German marque's range since the mid-1990s, and continued the lineage of the brand's mid-size premium sedan offering that dates right back to the '70s. But in 2024, after five generations of a very popular nameplate, Audi decided to throw out the A4 name and make the A5 the combustion-powered mid-size executive sedan and estate offering in its lineup. Yes, there was an A5 before it, but the previous generation was offered as a two-door coupe and cabriolet, as well as a five-door Sportback that was something of a four-door coupe-style liftback. Now though, the 'B10'-generation Audi A5 offers Sedan (liftback) and Avant (wagon) versions which effectively replace the old A4 Sedan and Avant, in addition to the previous A5 Coupe, Cabriolet and Sportback. Confused yet? The 2025 Audi A5 range is the first to ride on the brand's new PPC (or Premium Platform Combustion) architecture, which is an evolution of the ubiquitous MLB toolkit that has underpinned everything from the A4 to the Porsche Macan as far back as the late 2000s. Ushering in a new design language and the brand's latest in-car technologies, the A5 arrives as a rival to the A4's arch nemeses, the BMW 3 Series and Mercedes-Benz C-Class. In 2025, both are more niche offerings compared to their more popular SUV equivalents in Australia. Does the new A5 have what it takes to sway Australian buyers from BMW and Mercedes-Benz showrooms? We joined the Australian launch drive in Victoria to find out. The A5 range starts from $79,900 before on-road costs for the entry-level TFSI 150kW Sedan, which is about $9000 up on the previous A4's entry point, though the base A5 is specified more like a mid-range A4 which started at $82,000. At launch, just the A5 Sedan TFSI 150kW and the S5 range will be available, though Audi Australia has already confirmed four new grades of A5 for release in the third quarter, including a TFSI quattro 200kW and e-hybrid quattro 270kW. Both of these trim levels will be available in Sedan and Avant body styles, priced from $89,900 for the Sedan and $92,900 for the e-hybrid PHEV – yes, Audi has achieved price parity for the plug-in variant with more power. The addition of the e-hybrid models is also the first time Audi Australia has offered a PHEV in the mid-size passenger car segment. However, it's worth noting the Audi A4 became the first mass-produced hybrid from a European manufacturer way back in 1997, with a diesel-electric plug-in hybrid based on the B5-gen A4 Avant. To see how the Audi A5 lines up against the competition, check out our comparison tool The B10-gen A5 range ushers in a new design philosophy for Audi both inside and out, for better and for worse in your reviewer's opinion. Where Audi's previous A4 and its other MLB-based cars were lauded for their high-quality, classically laid out interiors; the new A5 and subsequent models are going hard on display tech, and reducing physical switchgear. The new 'digital stage' interior layout is headlined by the 11.9-inch Audi virtual cockpit plus (digital instrument cluster) and 14.5-inch MMI navigation plus infotainment touchscreen. This can be bolstered by an additional 10.9-inch passenger-side touchscreen in the A5 for an additional $1950 – like a Porsche. Compared to Audi's pared-back, fairly traditional cockpits of old, the new layout and interface can be a little daunting, even jarring. There's a lot of piano black in the bezels of the curved housing of the main driver displays, as well as the centre console, too. The interface is now powered by Android, which explains the smartphone-like widgets and app drawer. Audi says the software is fully tailored to the brand, and allows the installation of a wider set of in-car apps via the Audi Application Store as well as over-the-air software updates. While it's generally fairly usable and definitely not as fiddly as some other touch control-heavy interiors within the Volkswagen Group, the A5/S5's infotainment interface feels less conventional and less user-friendly than the previous generation of MMI. The displays offer beautiful clarity, brightness and graphics, though the widget-based menu structure isn't as clean as the tiled system it replaces and you will need to spend a bit more time learning where everything is. Unfortunately, Audi has also moved the A5 to touch-based climate controls, housed in a permanent virtual toolbar at the base of the central display. These aren't as user-friendly as even the clicky touch controls in larger vehicles like the Q7 and Q8, and feel like a step back. The toolbar is small relative to the available display real estate, as are the virtual buttons, meaning any quick changes while on the move require your eyes to be averted from the road and often result in a press of the neighbouring button or pressing it one too many times. I'm also not a big fan of the new multifunction steering wheel controls, which feel like a halfway house between Audi's old tactile physical buttons and the more fiddly touch-capacitive controls used in other VW Group models. They're not bad, but they're not great, either. Be prepared to have a microfibre cloth always at the ready too, because the glossy finish of the display and the swathes of piano black trim are a nightmare for fingerprints and smudges. But it's not all bad, I promise. Quick load times and gorgeously bright colours make these displays beautiful to look at, and while I miss the beautiful simplicity of the old Audi virtual cockpit layout, the new one with its central dial and adjustable side widgets make me feel like I'm wearing Iron Man's helmet. As you'd expect, the A5's infotainment fitout comes fully equipped with connected services, wireless Apple CarPlay and Android Auto, DAB+ digital radio, as well as native navigation with online mapping. As part of the optional $4900 premium package, the A5 is also available with a thumping 16-speaker Bang & Olufsen 3D audio system. At full blast this immersive in-car sound experience is fantastic – though if you turn the bass and subwoofer up too high I reckon it might feel too much like a nightclub. In the flagship S5, you can also opt for additional speakers built into the front head restraints for $980, bringing the speaker count to 20. The general feeling of quality is pretty good too, with a good mix of soft-touch and textured materials dotted throughout the cabin. While the base A5 doesn't get the all-out extended upholstery of the flagship S5, it's still a pretty nice place to spend time and doesn't feel as plasticky as the Mercedes-Benz C-Class, for example. Further back, there's good space for four adults, though the protruding rear centre console and raised centre seat cushion mean a full-size fifth passenger might only be a good idea on the odd occasion. Audi quotes a 77mm increase in wheelbase over the old A4, which opens up more leg and knee room for rear passengers. It can all feel quite closed in if you choose the standard black interior – I personally would be rushing to tick the pearl beige or nutmeg brown interior option boxes – and while the rear windows are decent in size, the rising shoulder line restricts outward visibility for shorter passengers. That said, you can really open up the cabin with the available panoramic glass roof, though you need to pay $4990 for the privilege. The optional roof also comes with what Audi calls 'switchable transparency', basically utilising similar tech to the Porsche Taycan whereby a liquid crystal sandwiched between two glass panels can be turned clear or opaque using electricity. That may all sound a little naff to you, but it removes the need for a conventional shade, which opens up more headroom while in theory offering similar if not better insulation from heat and UV rays. Rear climate controls and USB-C charge ports add to the back-seat amenity, and there are your requisite ISOFIX and top-tether anchors for child seats should you need them. Fun fact? The rear USB-C ports can output 100W to charge larger devices like laptops should you need the extra juice, too – provided you tick the $4990 Premium package. Despite being marketed as a 'Sedan', the Audi A5 is actually a liftback. This makes for a very wide and practical boot opening, which opens up to a 445-litre cargo area in base trim – and expands to 1299L with the rear seats folded. As is seemingly customary in most premium products these days, particularly European ones, there is no spare tyre – just a repair kit. To see how the Audi A5 lines up against the competition, check out our comparison tool At launch, just the 150kW 2.0-litre turbo-petrol and the 270kW 3.0-litre V6 turbo-petrol engines are available, the latter with Audi's new MHEV plus 48V mild-hybrid system. Overseas, there are also MHEV plus-equipped TFSI petrol and TDI diesel variants, and Audi's local product team has left the door open to offering more mild-hybrids here, though it hasn't confirmed when we might see them. Speaking of, the MHEV plus tech is effectively an extended 48V mild-hybrid system that can drive in EV mode unassisted at low speeds, like when crawling in traffic or rolling in carparks. Audi says official combined-cycle testing shows the system can save 0.74L/100km of fuel – likely more in stop-start traffic than in the real world. The system consists of an 18kW motor/generator mounted to the S tronic dual-clutch transmission, powered by a 1.7kWh lithium-ion battery pack. Audi claims its MHEV plus tech boosts performance and cuts turbo lag, in addition to the fuel savings that result from this. Following the initial launch, Audi Australia has confirmed it will release the TFSI 200kW quattro and e-hybrid 270kW quattro variants, both of which will be available in sedan and wagon body styles. The latter is the first plug-in hybrid Audi in the mid-size passenger car segment, and claims to offer just under 90km of WLTP-certified driving range while being about half a second slower from 0-100km/h than the hi-po S5. To see how the Audi A5 lines up against the competition, check out our comparison tool Our launch drive started at the Melbourne Airport north of Victoria's capital and headed out to Mount Macedon. A second transit leg in the A5 brought us back to the airport from the town of Trentham, also in Victoria's north-west. I drove a bog-standard A5 Sedan TFSI 150kW for the first leg, then spent the return trip in a highly optioned example with both the Style ($3900) and Premium ($4900) packages, the former including larger 20-inch wheels. Setting off from Melbourne in the base variant with 19-inch rims and chubbier tyres, the A5 Sedan proved to be a very refined and unassuming commuter that gets things done without much fuss. The 150kW 2.0-litre turbo-petrol engine offers all 340Nm of its torque from 2000rpm, and the seven-speed dual-clutch auto is one of the best of the breed. There's minimal engine noise unless you absolutely wring its neck, and performance is responsive and linear. Audi quotes a respectable 7.8-second dash from rest to 100km/h, but its real strength is muscular acceleration once you're already rolling. Given the A5's 2.0-litre turbo mill from the EA888 family is the same base engine as seen in the likes of the Volkswagen Golf GTI and R, it's no wonder the effortless yet punchy performance has a familiar feel to it. The ubiquitous power unit has been honed and refined over nearly two decades and it shows. Sadly, it doesn't have the new fuel-saving 'MHEV plus' 48V mild-hybrid tech like the Q5 mid-size SUV with the same engine, though Audi has hinted that this will eventually be added to the A5 at some point. While a 0.74L/100km saving on the combined cycle doesn't sound like much (based on the S5's V6 TFSI with MHEV plus), you'd see greater efficiency gains in stop-start city driving, as well as the ability to coast in EV mode when off the throttle or rolling along in low-speed traffic or car parks. The seven-speed 'S tronic' dual-clutch automatic is also one of the best in the business. You rarely get those moments of hesitation off the line like with DSGs of old, and while there's the odd elastic feeling as it shifts from first to second it's generally a very smooth and snappy gearbox. It's also not a thrashy or unrefined powertrain when pushed, with a muted and raspy note permeating the cabin under hard acceleration. The standard steering-mounted paddle shifters also allow you to take control of the gears yourself, should you desire – and it's generally very snappy and responsive here as well. Once the road gets a little twistier, you might be surprised by even the standard A5's cornering capability, even without quattro all-wheel drive and irrespective of the specified wheel and tyre package. This evolution of the VW Group's MLB platform has retained the sure-footed feel of its predecessors, thanks to a wider and lower-slung stance combined with pointy steering response. Even this base car is a bit of fun to sling through a succession of B-road bends. However, in both the A5 and S5, I felt there was something lacking in the steering feel, even with the Audi drive select system set to the sportiest driving mode. It just lacks the feel and feedback to make this a properly engaging drive, which is a shame given any 3 Series or even the electric BMW i4 Gran Coupe gives you more of a connection to the front axle. Particularly when trying to drive it harder, it feels too light and assisted to give you proper satisfaction through bends. Still, the quick response and keen handling makes up for that somewhat, and this is really only a criticism if you're a keen driver that holds these sort of qualities as a high priority. It rides well too, regardless of the wheels chosen, despite rolling on passive steel springs. In typical Audi fashion it errs on the firmer side which keeps the body fairly flat in corners and communicates the road surface and its imperfections, but even on patchy regional tarmac it rarely felt harsh or unsettled. As for driver assistance systems, which are typically an Audi strength, the A5 and S5 range is just about fully featured, with the exception of a lane centring system, which is notably absent from all PPC and PPE (EV) products Down Under. While the standard adaptive cruise control does a good job, as do the usual lane-keep assist and blind-spot/rear cross-traffic alert systems, the lack of semi-autonomous highway driving functionality seems odd – especially from a tech specialist like Audi. The brand's local product team has indicated the tech is still under development for Australia, which has various region-specific elements including lane markings, and will be rolled out ex-factory alongside other features potentially as soon as model year 2026 production, which starts later this year. It's understood most vehicles already in Australia should be fitted with the required hardware for these systems, meaning these systems should be retrofittable in existing customer cars at dealer level via a software update at some point in the future. To see how the Audi A5 lines up against the competition, check out our comparison tool Three distinct trim levels are available at launch, including the S5 edition one that's more of a pared-back 'purist' variant. It will be effectively replaced by the TFSI 200kW and e-hybrid 270kW quattro variants later this year. 2025 Audi A5 TFSI 150kW equipment highlights: A5 TFSI 200kW quattro adds: A5 e-hybrid 270kW quattro adds: To see how the Audi A5 lines up against the competition, check out our comparison tool There are a few key packages and single-item options available for the A5. Style package: $3900 Premium package: $4900 Single item options include: To see how the Audi A5 lines up against the competition, check out our comparison tool Since launch, the Audi A5 range has been awarded a five-star ANCAP safety rating, based on Euro NCAP testing. Standard safety equipment across the range includes: To see how the Audi A5 lines up against the competition, check out our comparison tool The A5 and S5 range is covered by Audi Australia's five-year, unlimited-kilometre warranty. Roadside assistance is included for the duration of the warranty period, too. To see how the Audi A5 lines up against the competition, check out our comparison tool The new A5 Sedan doesn't necessarily break the premium executive mould, but in the Australian market at least it makes a very strong value case against its direct German rivals. Mid-size premium sedan buyers can get a lot more for their money with Audi's new entrant, which starts nearly $10,000 under than the most affordable C-Class and $15,000 below the cheapest 3 Series. The strong value equation is bolstered by sharp looks, a tech-laden cabin and keen but not class-leading driving dynamics all are big ticks. While it lacks any form of electrification (at least for now), the base powertrain also has plenty of go and is quite refined, too. I personally am not hugely happy with the increased application of gloss black trim and the reduction in physical, tactile Audi switchgear, nor did I particularly take to the light, overly assisted feel of the steering. That said, a lot of that is down to personal preference. And while base pricing is very competitive, tick the two available main option packages and you're looking at nearly $90,000 before on-road costs for a well-optioned base model, which is nevertheless still cheaper than entry-level versions of its BMW and Mercedes-Benz rivals. I'd pass on the Style package, but I reckon the $4900 Premium package is a must-have. You also don't need the optional passenger display, but the (expensive) $4990 sunroof with high-tech shade will no doubt have high uptake. All told, in a segment that has been in decline for some time and could almost be regarded as 'niche' in 2025, the accomplished new Audi A5 shapes as a more value-driven alternative to its German competitors. If you're not fussed on electrification, the base petrol A5 is a very capable executive sedan (or liftback). CarExpert can save you thousands on a new Audi A5. Click here to get a great Explore the Audi A5 showroom Content originally sourced from: A5 Pros Audi A5 Cons The Audi A4 has been a staple of the German marque's range since the mid-1990s, and continued the lineage of the brand's mid-size premium sedan offering that dates right back to the '70s. But in 2024, after five generations of a very popular nameplate, Audi decided to throw out the A4 name and make the A5 the combustion-powered mid-size executive sedan and estate offering in its lineup. Yes, there was an A5 before it, but the previous generation was offered as a two-door coupe and cabriolet, as well as a five-door Sportback that was something of a four-door coupe-style liftback. Now though, the 'B10'-generation Audi A5 offers Sedan (liftback) and Avant (wagon) versions which effectively replace the old A4 Sedan and Avant, in addition to the previous A5 Coupe, Cabriolet and Sportback. Confused yet? The 2025 Audi A5 range is the first to ride on the brand's new PPC (or Premium Platform Combustion) architecture, which is an evolution of the ubiquitous MLB toolkit that has underpinned everything from the A4 to the Porsche Macan as far back as the late 2000s. Ushering in a new design language and the brand's latest in-car technologies, the A5 arrives as a rival to the A4's arch nemeses, the BMW 3 Series and Mercedes-Benz C-Class. In 2025, both are more niche offerings compared to their more popular SUV equivalents in Australia. Does the new A5 have what it takes to sway Australian buyers from BMW and Mercedes-Benz showrooms? We joined the Australian launch drive in Victoria to find out. The A5 range starts from $79,900 before on-road costs for the entry-level TFSI 150kW Sedan, which is about $9000 up on the previous A4's entry point, though the base A5 is specified more like a mid-range A4 which started at $82,000. At launch, just the A5 Sedan TFSI 150kW and the S5 range will be available, though Audi Australia has already confirmed four new grades of A5 for release in the third quarter, including a TFSI quattro 200kW and e-hybrid quattro 270kW. Both of these trim levels will be available in Sedan and Avant body styles, priced from $89,900 for the Sedan and $92,900 for the e-hybrid PHEV – yes, Audi has achieved price parity for the plug-in variant with more power. The addition of the e-hybrid models is also the first time Audi Australia has offered a PHEV in the mid-size passenger car segment. However, it's worth noting the Audi A4 became the first mass-produced hybrid from a European manufacturer way back in 1997, with a diesel-electric plug-in hybrid based on the B5-gen A4 Avant. To see how the Audi A5 lines up against the competition, check out our comparison tool The B10-gen A5 range ushers in a new design philosophy for Audi both inside and out, for better and for worse in your reviewer's opinion. Where Audi's previous A4 and its other MLB-based cars were lauded for their high-quality, classically laid out interiors; the new A5 and subsequent models are going hard on display tech, and reducing physical switchgear. The new 'digital stage' interior layout is headlined by the 11.9-inch Audi virtual cockpit plus (digital instrument cluster) and 14.5-inch MMI navigation plus infotainment touchscreen. This can be bolstered by an additional 10.9-inch passenger-side touchscreen in the A5 for an additional $1950 – like a Porsche. Compared to Audi's pared-back, fairly traditional cockpits of old, the new layout and interface can be a little daunting, even jarring. There's a lot of piano black in the bezels of the curved housing of the main driver displays, as well as the centre console, too. The interface is now powered by Android, which explains the smartphone-like widgets and app drawer. Audi says the software is fully tailored to the brand, and allows the installation of a wider set of in-car apps via the Audi Application Store as well as over-the-air software updates. While it's generally fairly usable and definitely not as fiddly as some other touch control-heavy interiors within the Volkswagen Group, the A5/S5's infotainment interface feels less conventional and less user-friendly than the previous generation of MMI. The displays offer beautiful clarity, brightness and graphics, though the widget-based menu structure isn't as clean as the tiled system it replaces and you will need to spend a bit more time learning where everything is. Unfortunately, Audi has also moved the A5 to touch-based climate controls, housed in a permanent virtual toolbar at the base of the central display. These aren't as user-friendly as even the clicky touch controls in larger vehicles like the Q7 and Q8, and feel like a step back. The toolbar is small relative to the available display real estate, as are the virtual buttons, meaning any quick changes while on the move require your eyes to be averted from the road and often result in a press of the neighbouring button or pressing it one too many times. I'm also not a big fan of the new multifunction steering wheel controls, which feel like a halfway house between Audi's old tactile physical buttons and the more fiddly touch-capacitive controls used in other VW Group models. They're not bad, but they're not great, either. Be prepared to have a microfibre cloth always at the ready too, because the glossy finish of the display and the swathes of piano black trim are a nightmare for fingerprints and smudges. But it's not all bad, I promise. Quick load times and gorgeously bright colours make these displays beautiful to look at, and while I miss the beautiful simplicity of the old Audi virtual cockpit layout, the new one with its central dial and adjustable side widgets make me feel like I'm wearing Iron Man's helmet. As you'd expect, the A5's infotainment fitout comes fully equipped with connected services, wireless Apple CarPlay and Android Auto, DAB+ digital radio, as well as native navigation with online mapping. As part of the optional $4900 premium package, the A5 is also available with a thumping 16-speaker Bang & Olufsen 3D audio system. At full blast this immersive in-car sound experience is fantastic – though if you turn the bass and subwoofer up too high I reckon it might feel too much like a nightclub. In the flagship S5, you can also opt for additional speakers built into the front head restraints for $980, bringing the speaker count to 20. The general feeling of quality is pretty good too, with a good mix of soft-touch and textured materials dotted throughout the cabin. While the base A5 doesn't get the all-out extended upholstery of the flagship S5, it's still a pretty nice place to spend time and doesn't feel as plasticky as the Mercedes-Benz C-Class, for example. Further back, there's good space for four adults, though the protruding rear centre console and raised centre seat cushion mean a full-size fifth passenger might only be a good idea on the odd occasion. Audi quotes a 77mm increase in wheelbase over the old A4, which opens up more leg and knee room for rear passengers. It can all feel quite closed in if you choose the standard black interior – I personally would be rushing to tick the pearl beige or nutmeg brown interior option boxes – and while the rear windows are decent in size, the rising shoulder line restricts outward visibility for shorter passengers. That said, you can really open up the cabin with the available panoramic glass roof, though you need to pay $4990 for the privilege. The optional roof also comes with what Audi calls 'switchable transparency', basically utilising similar tech to the Porsche Taycan whereby a liquid crystal sandwiched between two glass panels can be turned clear or opaque using electricity. That may all sound a little naff to you, but it removes the need for a conventional shade, which opens up more headroom while in theory offering similar if not better insulation from heat and UV rays. Rear climate controls and USB-C charge ports add to the back-seat amenity, and there are your requisite ISOFIX and top-tether anchors for child seats should you need them. Fun fact? The rear USB-C ports can output 100W to charge larger devices like laptops should you need the extra juice, too – provided you tick the $4990 Premium package. Despite being marketed as a 'Sedan', the Audi A5 is actually a liftback. This makes for a very wide and practical boot opening, which opens up to a 445-litre cargo area in base trim – and expands to 1299L with the rear seats folded. As is seemingly customary in most premium products these days, particularly European ones, there is no spare tyre – just a repair kit. To see how the Audi A5 lines up against the competition, check out our comparison tool At launch, just the 150kW 2.0-litre turbo-petrol and the 270kW 3.0-litre V6 turbo-petrol engines are available, the latter with Audi's new MHEV plus 48V mild-hybrid system. Overseas, there are also MHEV plus-equipped TFSI petrol and TDI diesel variants, and Audi's local product team has left the door open to offering more mild-hybrids here, though it hasn't confirmed when we might see them. Speaking of, the MHEV plus tech is effectively an extended 48V mild-hybrid system that can drive in EV mode unassisted at low speeds, like when crawling in traffic or rolling in carparks. Audi says official combined-cycle testing shows the system can save 0.74L/100km of fuel – likely more in stop-start traffic than in the real world. The system consists of an 18kW motor/generator mounted to the S tronic dual-clutch transmission, powered by a 1.7kWh lithium-ion battery pack. Audi claims its MHEV plus tech boosts performance and cuts turbo lag, in addition to the fuel savings that result from this. Following the initial launch, Audi Australia has confirmed it will release the TFSI 200kW quattro and e-hybrid 270kW quattro variants, both of which will be available in sedan and wagon body styles. The latter is the first plug-in hybrid Audi in the mid-size passenger car segment, and claims to offer just under 90km of WLTP-certified driving range while being about half a second slower from 0-100km/h than the hi-po S5. To see how the Audi A5 lines up against the competition, check out our comparison tool Our launch drive started at the Melbourne Airport north of Victoria's capital and headed out to Mount Macedon. A second transit leg in the A5 brought us back to the airport from the town of Trentham, also in Victoria's north-west. I drove a bog-standard A5 Sedan TFSI 150kW for the first leg, then spent the return trip in a highly optioned example with both the Style ($3900) and Premium ($4900) packages, the former including larger 20-inch wheels. Setting off from Melbourne in the base variant with 19-inch rims and chubbier tyres, the A5 Sedan proved to be a very refined and unassuming commuter that gets things done without much fuss. The 150kW 2.0-litre turbo-petrol engine offers all 340Nm of its torque from 2000rpm, and the seven-speed dual-clutch auto is one of the best of the breed. There's minimal engine noise unless you absolutely wring its neck, and performance is responsive and linear. Audi quotes a respectable 7.8-second dash from rest to 100km/h, but its real strength is muscular acceleration once you're already rolling. Given the A5's 2.0-litre turbo mill from the EA888 family is the same base engine as seen in the likes of the Volkswagen Golf GTI and R, it's no wonder the effortless yet punchy performance has a familiar feel to it. The ubiquitous power unit has been honed and refined over nearly two decades and it shows. Sadly, it doesn't have the new fuel-saving 'MHEV plus' 48V mild-hybrid tech like the Q5 mid-size SUV with the same engine, though Audi has hinted that this will eventually be added to the A5 at some point. While a 0.74L/100km saving on the combined cycle doesn't sound like much (based on the S5's V6 TFSI with MHEV plus), you'd see greater efficiency gains in stop-start city driving, as well as the ability to coast in EV mode when off the throttle or rolling along in low-speed traffic or car parks. The seven-speed 'S tronic' dual-clutch automatic is also one of the best in the business. You rarely get those moments of hesitation off the line like with DSGs of old, and while there's the odd elastic feeling as it shifts from first to second it's generally a very smooth and snappy gearbox. It's also not a thrashy or unrefined powertrain when pushed, with a muted and raspy note permeating the cabin under hard acceleration. The standard steering-mounted paddle shifters also allow you to take control of the gears yourself, should you desire – and it's generally very snappy and responsive here as well. Once the road gets a little twistier, you might be surprised by even the standard A5's cornering capability, even without quattro all-wheel drive and irrespective of the specified wheel and tyre package. This evolution of the VW Group's MLB platform has retained the sure-footed feel of its predecessors, thanks to a wider and lower-slung stance combined with pointy steering response. Even this base car is a bit of fun to sling through a succession of B-road bends. However, in both the A5 and S5, I felt there was something lacking in the steering feel, even with the Audi drive select system set to the sportiest driving mode. It just lacks the feel and feedback to make this a properly engaging drive, which is a shame given any 3 Series or even the electric BMW i4 Gran Coupe gives you more of a connection to the front axle. Particularly when trying to drive it harder, it feels too light and assisted to give you proper satisfaction through bends. Still, the quick response and keen handling makes up for that somewhat, and this is really only a criticism if you're a keen driver that holds these sort of qualities as a high priority. It rides well too, regardless of the wheels chosen, despite rolling on passive steel springs. In typical Audi fashion it errs on the firmer side which keeps the body fairly flat in corners and communicates the road surface and its imperfections, but even on patchy regional tarmac it rarely felt harsh or unsettled. As for driver assistance systems, which are typically an Audi strength, the A5 and S5 range is just about fully featured, with the exception of a lane centring system, which is notably absent from all PPC and PPE (EV) products Down Under. While the standard adaptive cruise control does a good job, as do the usual lane-keep assist and blind-spot/rear cross-traffic alert systems, the lack of semi-autonomous highway driving functionality seems odd – especially from a tech specialist like Audi. The brand's local product team has indicated the tech is still under development for Australia, which has various region-specific elements including lane markings, and will be rolled out ex-factory alongside other features potentially as soon as model year 2026 production, which starts later this year. It's understood most vehicles already in Australia should be fitted with the required hardware for these systems, meaning these systems should be retrofittable in existing customer cars at dealer level via a software update at some point in the future. To see how the Audi A5 lines up against the competition, check out our comparison tool Three distinct trim levels are available at launch, including the S5 edition one that's more of a pared-back 'purist' variant. It will be effectively replaced by the TFSI 200kW and e-hybrid 270kW quattro variants later this year. 2025 Audi A5 TFSI 150kW equipment highlights: A5 TFSI 200kW quattro adds: A5 e-hybrid 270kW quattro adds: To see how the Audi A5 lines up against the competition, check out our comparison tool There are a few key packages and single-item options available for the A5. Style package: $3900 Premium package: $4900 Single item options include: To see how the Audi A5 lines up against the competition, check out our comparison tool Since launch, the Audi A5 range has been awarded a five-star ANCAP safety rating, based on Euro NCAP testing. Standard safety equipment across the range includes: To see how the Audi A5 lines up against the competition, check out our comparison tool The A5 and S5 range is covered by Audi Australia's five-year, unlimited-kilometre warranty. Roadside assistance is included for the duration of the warranty period, too. To see how the Audi A5 lines up against the competition, check out our comparison tool The new A5 Sedan doesn't necessarily break the premium executive mould, but in the Australian market at least it makes a very strong value case against its direct German rivals. Mid-size premium sedan buyers can get a lot more for their money with Audi's new entrant, which starts nearly $10,000 under than the most affordable C-Class and $15,000 below the cheapest 3 Series. The strong value equation is bolstered by sharp looks, a tech-laden cabin and keen but not class-leading driving dynamics all are big ticks. While it lacks any form of electrification (at least for now), the base powertrain also has plenty of go and is quite refined, too. I personally am not hugely happy with the increased application of gloss black trim and the reduction in physical, tactile Audi switchgear, nor did I particularly take to the light, overly assisted feel of the steering. That said, a lot of that is down to personal preference. And while base pricing is very competitive, tick the two available main option packages and you're looking at nearly $90,000 before on-road costs for a well-optioned base model, which is nevertheless still cheaper than entry-level versions of its BMW and Mercedes-Benz rivals. I'd pass on the Style package, but I reckon the $4900 Premium package is a must-have. You also don't need the optional passenger display, but the (expensive) $4990 sunroof with high-tech shade will no doubt have high uptake. All told, in a segment that has been in decline for some time and could almost be regarded as 'niche' in 2025, the accomplished new Audi A5 shapes as a more value-driven alternative to its German competitors. If you're not fussed on electrification, the base petrol A5 is a very capable executive sedan (or liftback). CarExpert can save you thousands on a new Audi A5. Click here to get a great Explore the Audi A5 showroom Content originally sourced from: A5 Pros Audi A5 Cons The Audi A4 has been a staple of the German marque's range since the mid-1990s, and continued the lineage of the brand's mid-size premium sedan offering that dates right back to the '70s. But in 2024, after five generations of a very popular nameplate, Audi decided to throw out the A4 name and make the A5 the combustion-powered mid-size executive sedan and estate offering in its lineup. Yes, there was an A5 before it, but the previous generation was offered as a two-door coupe and cabriolet, as well as a five-door Sportback that was something of a four-door coupe-style liftback. Now though, the 'B10'-generation Audi A5 offers Sedan (liftback) and Avant (wagon) versions which effectively replace the old A4 Sedan and Avant, in addition to the previous A5 Coupe, Cabriolet and Sportback. Confused yet? The 2025 Audi A5 range is the first to ride on the brand's new PPC (or Premium Platform Combustion) architecture, which is an evolution of the ubiquitous MLB toolkit that has underpinned everything from the A4 to the Porsche Macan as far back as the late 2000s. Ushering in a new design language and the brand's latest in-car technologies, the A5 arrives as a rival to the A4's arch nemeses, the BMW 3 Series and Mercedes-Benz C-Class. In 2025, both are more niche offerings compared to their more popular SUV equivalents in Australia. Does the new A5 have what it takes to sway Australian buyers from BMW and Mercedes-Benz showrooms? We joined the Australian launch drive in Victoria to find out. The A5 range starts from $79,900 before on-road costs for the entry-level TFSI 150kW Sedan, which is about $9000 up on the previous A4's entry point, though the base A5 is specified more like a mid-range A4 which started at $82,000. At launch, just the A5 Sedan TFSI 150kW and the S5 range will be available, though Audi Australia has already confirmed four new grades of A5 for release in the third quarter, including a TFSI quattro 200kW and e-hybrid quattro 270kW. Both of these trim levels will be available in Sedan and Avant body styles, priced from $89,900 for the Sedan and $92,900 for the e-hybrid PHEV – yes, Audi has achieved price parity for the plug-in variant with more power. The addition of the e-hybrid models is also the first time Audi Australia has offered a PHEV in the mid-size passenger car segment. However, it's worth noting the Audi A4 became the first mass-produced hybrid from a European manufacturer way back in 1997, with a diesel-electric plug-in hybrid based on the B5-gen A4 Avant. To see how the Audi A5 lines up against the competition, check out our comparison tool The B10-gen A5 range ushers in a new design philosophy for Audi both inside and out, for better and for worse in your reviewer's opinion. Where Audi's previous A4 and its other MLB-based cars were lauded for their high-quality, classically laid out interiors; the new A5 and subsequent models are going hard on display tech, and reducing physical switchgear. The new 'digital stage' interior layout is headlined by the 11.9-inch Audi virtual cockpit plus (digital instrument cluster) and 14.5-inch MMI navigation plus infotainment touchscreen. This can be bolstered by an additional 10.9-inch passenger-side touchscreen in the A5 for an additional $1950 – like a Porsche. Compared to Audi's pared-back, fairly traditional cockpits of old, the new layout and interface can be a little daunting, even jarring. There's a lot of piano black in the bezels of the curved housing of the main driver displays, as well as the centre console, too. The interface is now powered by Android, which explains the smartphone-like widgets and app drawer. Audi says the software is fully tailored to the brand, and allows the installation of a wider set of in-car apps via the Audi Application Store as well as over-the-air software updates. While it's generally fairly usable and definitely not as fiddly as some other touch control-heavy interiors within the Volkswagen Group, the A5/S5's infotainment interface feels less conventional and less user-friendly than the previous generation of MMI. The displays offer beautiful clarity, brightness and graphics, though the widget-based menu structure isn't as clean as the tiled system it replaces and you will need to spend a bit more time learning where everything is. Unfortunately, Audi has also moved the A5 to touch-based climate controls, housed in a permanent virtual toolbar at the base of the central display. These aren't as user-friendly as even the clicky touch controls in larger vehicles like the Q7 and Q8, and feel like a step back. The toolbar is small relative to the available display real estate, as are the virtual buttons, meaning any quick changes while on the move require your eyes to be averted from the road and often result in a press of the neighbouring button or pressing it one too many times. I'm also not a big fan of the new multifunction steering wheel controls, which feel like a halfway house between Audi's old tactile physical buttons and the more fiddly touch-capacitive controls used in other VW Group models. They're not bad, but they're not great, either. Be prepared to have a microfibre cloth always at the ready too, because the glossy finish of the display and the swathes of piano black trim are a nightmare for fingerprints and smudges. But it's not all bad, I promise. Quick load times and gorgeously bright colours make these displays beautiful to look at, and while I miss the beautiful simplicity of the old Audi virtual cockpit layout, the new one with its central dial and adjustable side widgets make me feel like I'm wearing Iron Man's helmet. As you'd expect, the A5's infotainment fitout comes fully equipped with connected services, wireless Apple CarPlay and Android Auto, DAB+ digital radio, as well as native navigation with online mapping. As part of the optional $4900 premium package, the A5 is also available with a thumping 16-speaker Bang & Olufsen 3D audio system. At full blast this immersive in-car sound experience is fantastic – though if you turn the bass and subwoofer up too high I reckon it might feel too much like a nightclub. In the flagship S5, you can also opt for additional speakers built into the front head restraints for $980, bringing the speaker count to 20. The general feeling of quality is pretty good too, with a good mix of soft-touch and textured materials dotted throughout the cabin. While the base A5 doesn't get the all-out extended upholstery of the flagship S5, it's still a pretty nice place to spend time and doesn't feel as plasticky as the Mercedes-Benz C-Class, for example. Further back, there's good space for four adults, though the protruding rear centre console and raised centre seat cushion mean a full-size fifth passenger might only be a good idea on the odd occasion. Audi quotes a 77mm increase in wheelbase over the old A4, which opens up more leg and knee room for rear passengers. It can all feel quite closed in if you choose the standard black interior – I personally would be rushing to tick the pearl beige or nutmeg brown interior option boxes – and while the rear windows are decent in size, the rising shoulder line restricts outward visibility for shorter passengers. That said, you can really open up the cabin with the available panoramic glass roof, though you need to pay $4990 for the privilege. The optional roof also comes with what Audi calls 'switchable transparency', basically utilising similar tech to the Porsche Taycan whereby a liquid crystal sandwiched between two glass panels can be turned clear or opaque using electricity. That may all sound a little naff to you, but it removes the need for a conventional shade, which opens up more headroom while in theory offering similar if not better insulation from heat and UV rays. Rear climate controls and USB-C charge ports add to the back-seat amenity, and there are your requisite ISOFIX and top-tether anchors for child seats should you need them. Fun fact? The rear USB-C ports can output 100W to charge larger devices like laptops should you need the extra juice, too – provided you tick the $4990 Premium package. Despite being marketed as a 'Sedan', the Audi A5 is actually a liftback. This makes for a very wide and practical boot opening, which opens up to a 445-litre cargo area in base trim – and expands to 1299L with the rear seats folded. As is seemingly customary in most premium products these days, particularly European ones, there is no spare tyre – just a repair kit. To see how the Audi A5 lines up against the competition, check out our comparison tool At launch, just the 150kW 2.0-litre turbo-petrol and the 270kW 3.0-litre V6 turbo-petrol engines are available, the latter with Audi's new MHEV plus 48V mild-hybrid system. Overseas, there are also MHEV plus-equipped TFSI petrol and TDI diesel variants, and Audi's local product team has left the door open to offering more mild-hybrids here, though it hasn't confirmed when we might see them. Speaking of, the MHEV plus tech is effectively an extended 48V mild-hybrid system that can drive in EV mode unassisted at low speeds, like when crawling in traffic or rolling in carparks. Audi says official combined-cycle testing shows the system can save 0.74L/100km of fuel – likely more in stop-start traffic than in the real world. The system consists of an 18kW motor/generator mounted to the S tronic dual-clutch transmission, powered by a 1.7kWh lithium-ion battery pack. Audi claims its MHEV plus tech boosts performance and cuts turbo lag, in addition to the fuel savings that result from this. Following the initial launch, Audi Australia has confirmed it will release the TFSI 200kW quattro and e-hybrid 270kW quattro variants, both of which will be available in sedan and wagon body styles. The latter is the first plug-in hybrid Audi in the mid-size passenger car segment, and claims to offer just under 90km of WLTP-certified driving range while being about half a second slower from 0-100km/h than the hi-po S5. To see how the Audi A5 lines up against the competition, check out our comparison tool Our launch drive started at the Melbourne Airport north of Victoria's capital and headed out to Mount Macedon. A second transit leg in the A5 brought us back to the airport from the town of Trentham, also in Victoria's north-west. I drove a bog-standard A5 Sedan TFSI 150kW for the first leg, then spent the return trip in a highly optioned example with both the Style ($3900) and Premium ($4900) packages, the former including larger 20-inch wheels. Setting off from Melbourne in the base variant with 19-inch rims and chubbier tyres, the A5 Sedan proved to be a very refined and unassuming commuter that gets things done without much fuss. The 150kW 2.0-litre turbo-petrol engine offers all 340Nm of its torque from 2000rpm, and the seven-speed dual-clutch auto is one of the best of the breed. There's minimal engine noise unless you absolutely wring its neck, and performance is responsive and linear. Audi quotes a respectable 7.8-second dash from rest to 100km/h, but its real strength is muscular acceleration once you're already rolling. Given the A5's 2.0-litre turbo mill from the EA888 family is the same base engine as seen in the likes of the Volkswagen Golf GTI and R, it's no wonder the effortless yet punchy performance has a familiar feel to it. The ubiquitous power unit has been honed and refined over nearly two decades and it shows. Sadly, it doesn't have the new fuel-saving 'MHEV plus' 48V mild-hybrid tech like the Q5 mid-size SUV with the same engine, though Audi has hinted that this will eventually be added to the A5 at some point. While a 0.74L/100km saving on the combined cycle doesn't sound like much (based on the S5's V6 TFSI with MHEV plus), you'd see greater efficiency gains in stop-start city driving, as well as the ability to coast in EV mode when off the throttle or rolling along in low-speed traffic or car parks. The seven-speed 'S tronic' dual-clutch automatic is also one of the best in the business. You rarely get those moments of hesitation off the line like with DSGs of old, and while there's the odd elastic feeling as it shifts from first to second it's generally a very smooth and snappy gearbox. It's also not a thrashy or unrefined powertrain when pushed, with a muted and raspy note permeating the cabin under hard acceleration. The standard steering-mounted paddle shifters also allow you to take control of the gears yourself, should you desire – and it's generally very snappy and responsive here as well. Once the road gets a little twistier, you might be surprised by even the standard A5's cornering capability, even without quattro all-wheel drive and irrespective of the specified wheel and tyre package. This evolution of the VW Group's MLB platform has retained the sure-footed feel of its predecessors, thanks to a wider and lower-slung stance combined with pointy steering response. Even this base car is a bit of fun to sling through a succession of B-road bends. However, in both the A5 and S5, I felt there was something lacking in the steering feel, even with the Audi drive select system set to the sportiest driving mode. It just lacks the feel and feedback to make this a properly engaging drive, which is a shame given any 3 Series or even the electric BMW i4 Gran Coupe gives you more of a connection to the front axle. Particularly when trying to drive it harder, it feels too light and assisted to give you proper satisfaction through bends. Still, the quick response and keen handling makes up for that somewhat, and this is really only a criticism if you're a keen driver that holds these sort of qualities as a high priority. It rides well too, regardless of the wheels chosen, despite rolling on passive steel springs. In typical Audi fashion it errs on the firmer side which keeps the body fairly flat in corners and communicates the road surface and its imperfections, but even on patchy regional tarmac it rarely felt harsh or unsettled. As for driver assistance systems, which are typically an Audi strength, the A5 and S5 range is just about fully featured, with the exception of a lane centring system, which is notably absent from all PPC and PPE (EV) products Down Under. While the standard adaptive cruise control does a good job, as do the usual lane-keep assist and blind-spot/rear cross-traffic alert systems, the lack of semi-autonomous highway driving functionality seems odd – especially from a tech specialist like Audi. The brand's local product team has indicated the tech is still under development for Australia, which has various region-specific elements including lane markings, and will be rolled out ex-factory alongside other features potentially as soon as model year 2026 production, which starts later this year. It's understood most vehicles already in Australia should be fitted with the required hardware for these systems, meaning these systems should be retrofittable in existing customer cars at dealer level via a software update at some point in the future. To see how the Audi A5 lines up against the competition, check out our comparison tool Three distinct trim levels are available at launch, including the S5 edition one that's more of a pared-back 'purist' variant. It will be effectively replaced by the TFSI 200kW and e-hybrid 270kW quattro variants later this year. 2025 Audi A5 TFSI 150kW equipment highlights: A5 TFSI 200kW quattro adds: A5 e-hybrid 270kW quattro adds: To see how the Audi A5 lines up against the competition, check out our comparison tool There are a few key packages and single-item options available for the A5. Style package: $3900 Premium package: $4900 Single item options include: To see how the Audi A5 lines up against the competition, check out our comparison tool Since launch, the Audi A5 range has been awarded a five-star ANCAP safety rating, based on Euro NCAP testing. Standard safety equipment across the range includes: To see how the Audi A5 lines up against the competition, check out our comparison tool The A5 and S5 range is covered by Audi Australia's five-year, unlimited-kilometre warranty. Roadside assistance is included for the duration of the warranty period, too. To see how the Audi A5 lines up against the competition, check out our comparison tool The new A5 Sedan doesn't necessarily break the premium executive mould, but in the Australian market at least it makes a very strong value case against its direct German rivals. Mid-size premium sedan buyers can get a lot more for their money with Audi's new entrant, which starts nearly $10,000 under than the most affordable C-Class and $15,000 below the cheapest 3 Series. The strong value equation is bolstered by sharp looks, a tech-laden cabin and keen but not class-leading driving dynamics all are big ticks. While it lacks any form of electrification (at least for now), the base powertrain also has plenty of go and is quite refined, too. I personally am not hugely happy with the increased application of gloss black trim and the reduction in physical, tactile Audi switchgear, nor did I particularly take to the light, overly assisted feel of the steering. That said, a lot of that is down to personal preference. And while base pricing is very competitive, tick the two available main option packages and you're looking at nearly $90,000 before on-road costs for a well-optioned base model, which is nevertheless still cheaper than entry-level versions of its BMW and Mercedes-Benz rivals. I'd pass on the Style package, but I reckon the $4900 Premium package is a must-have. You also don't need the optional passenger display, but the (expensive) $4990 sunroof with high-tech shade will no doubt have high uptake. All told, in a segment that has been in decline for some time and could almost be regarded as 'niche' in 2025, the accomplished new Audi A5 shapes as a more value-driven alternative to its German competitors. If you're not fussed on electrification, the base petrol A5 is a very capable executive sedan (or liftback). CarExpert can save you thousands on a new Audi A5. Click here to get a great Explore the Audi A5 showroom Content originally sourced from:
