Top 10 Best Hatchbacks Under $40,000 in Australia, 2023

That’s quite the shame, in our opinion, considering just how user-friendly and fun hatchbacks can be behind the wheel, not to mention their significant value propositions on features and fuel savings over time.

If you’re searching high and low for a hatchback you’ll love, you’re in luck, because we’ve come up with our list of the 10 best hatchbacks priced under $40,000 here in Australia to help you out with your hunt.

Hyundai i30 N Line Premium

Starting from $24,000*

Our list kicks off with a hatchback that has come a long way since its introduction, the Hyundai i30, which offers a seriously impressive driving package buoyed by healthy equipment lists and a nice, premium and practical cabin layout.

For under $40k, you can get your hands on the i30 N Line Premium hatchback which comes powered by a spirited turbocharged engine pushing out 150kW of power and 265Nm of torque, making for a great daily driver and an exciting little package when pushed.

• Engine: 1.6-litre turbocharged four-cylinder petrol
• Power & Torque: 150kW/265Nm
• Fuel Consumption: 7.1 - 7.5L/100km (automatic vs manual) 
• Boot Space: 395L
• Infotainment Display Size: 8.0-inches 
• ANCAP Safety Rating: Five-star

Toyota Corolla ZR Hybrid

Starting from $29,270*

If you’re looking for an efficient hatchback that can trim those fuel bills quite considerably, Toyota’s latest range of Corolla hatchbacks and sedans has you covered, with the option of hybrid powertrains across the range.

Sitting at the top of the lineup, the Corolla ZR picks up all the bells and whistles, including a long list of active safety features, with combined fuel cycle figures of just 4.0L/100km making it one of the most fuel-efficient hatchbacks currently on sale in Australia.

• Engine: 1.8-litre four-cylinder petrol + electric motor hybrid 
• Power & Torque: 103kW
• Fuel Consumption: 4.0L/100km
• Boot Space: 217 - 333L
• Infotainment Display Size: 8.0-inches 
• ANCAP Safety Rating: Five-star
• Warranty: Five-year/unlimited-kilometre

Kia Cerato GT

Starting from $26,290*

Kia is sticking by the hatchback segment with its updated Cerato range, a lineup that gives value-conscious buyers some serious food for thought considering its generous features lists and outstanding seven-year warranty coverage.

Sitting at the top of the range, the Cerato GT picks up a perky turbocharged engine, a dual-clutch transmission, sporty suspension package, ventilated front seats and a panoramic sunroof that adds some sophistication to the impressively practical package.

• Engine: 1.6-litre turbocharged four-cylinder petrol 
• Power & Torque: 150kW/265Nm
• Fuel Consumption: 6.8L/100km
• Boot Space: 428L
• Infotainment Display Size: 10.25-inches 
• ANCAP Safety Rating: Five-star
• Warranty: Seven-year/unlimited-kilometre

Volkswagen Golf Life

Starting from $36,290*

Once the undisputed king of the hill, the Volkswagen Golf range remains one of the most impressive hatchbacks on sale in Australia thanks to its premium nature on the road and the impressive levels of cabin refinement.

While the GTI is out of the price range, you can still get behind the wheel of the entry-level Golf and the mid-spec Golf Life, the latter of which picks up 17-inch alloys, comfort seats, a 10-inch infotainment display and a 10.25-inch digital instrument cluster that makes it feel like a seriously high-tech affair.

• Engine: 1.4-litre turbocharged four-cylinder petrol
• Power & Torque: 110kW/250Nm
• Fuel Consumption: 5.8L/100km
• Boot Space: 374L
• Infotainment Display Size: 10.0-inches  
• ANCAP Safety Rating: Five-star 
• Warranty: Five-year/unlimited-kilometre

Mazda 3 G25 GT

Starting from $27,160*

The Mazda 3 is often used as the benchmark car for rivals in the hatchback segment thanks to its agile handling, user-friendly nature and the simply lovely interior layout that makes it feel like a truly premium package.

For under $40,000, you can get your hands on the premium Mazda 3 GT, powered by the perkier 2.5-litre four-cylinder that makes it fast on its feet, wonderfully simple to drive around town and super attractive inside thanks to the leather upholstery and larger 10.25-inch  infotainment display.

• Engine: 2.5-litre four-cylinder petrol 
• Power & Torque: 138kW/252Nm
• Fuel Consumption: 6.6L/100km
• Boot Space: 295L
• Infotainment Display Size: 10.25-inches
• ANCAP Safety Rating: Five-star 
• Warranty: Five-year/unlimited-kilometre

Skoda Fabia Monte Carlo

Starting from $36,990*

While most of the Skoda Fabia lineup has made an exit from the Australian market, the range-topping Fabia Monte Carlo remains very much available for buyers complete with a long equipment list and a perky turbocharged engine.

The Fabia Monte Carlo comes riding on 18-inch alloys and receives a sports suspension tune over the standard Fabia, making it a heap of fun to drive while remaining a comfortable and fuel-efficient daily driver, while the interior comes packed to the brim with bright sporty touches.

• Engine: 1.5-litre turbocharged four-cylinder petrol
• Power & Torque: 110kW/250Nm
• Fuel Consumption: 4.9L/100km
• Boot Space: 380L
• Infotainment Display Size: 9.2-inches 
• ANCAP Safety Rating: Five-star
• Warranty: Five-year/unlimited-kilometre

MG MG4 Excite

Starting from $38,990*

The MG MG4 makes the cut as the only battery-electric hatchback on our list, with the entry-level Excite offering zero-emissions motoring with a decent amount of range for urban buyers looking to zip around in comfort and silence.

The entry-level MG4 Excite comes powered by an electric motor mounted at the rear of the platform, with juice supplied by a 51kWh battery pack that offers up to 350km on the WLTP test cycle.

• Engine: Single, rear-mounted electric motor
• Power & Torque: 125kW
• Driving Range: 350km (WLTP) 
• Boot Space: 363L 
• Infotainment Display Size: 10.25-inches 
• ANCAP Safety Rating: Unrated
• Warranty: Seven-year/unlimited-kilometre

Subaru Impreza 2.0S

Starting from $31,490*

The Subaru Impreza is another well-known name in the world of affordable hatchbacks, and the latest generation has brought in a styling refresh combined with more interior and safety equipment as standard.

For under $40,000, you can get your hands on the range-topping Subaru Impreza 2.0S, which picks up a premium interior layout with leather upholstery, a powered sunroof and a 10-speaker sound system from Harman Kardon.

• Engine: 2.0-litre four-cylinder petrol 
• Power & Torque: 115kW/196Nm
• Fuel Consumption: 7.5L/100km
• Boot Space: 291L
• Infotainment Display Size: 11.6-inches 
• ANCAP Safety Rating: Unrated 
• Warranty: Five-year/unlimited-kilometre

Abarth 695 Competizione

Starting from $36,400*

By far the naughtiest car on our list of hatchbacks priced under $40,000 here in Australia, the Abarth 695 Competizione comes snarling out of the gates with its loud exhaust, spirited engine and aggressive styling.

For what it lacks in size, the 695 Competitizione well and truly makes up for with its charming personality, and while it’s happy to bumble around at slow speeds, this is a package designed to be stretched out on the open road where it will no doubt put a smile on your face.

• Engine: 1.4-litre turbocharged four-cylinder petrol 
• Power & Torque: 132kW/250Nm
• Fuel Consumption: 5.8 - 6.0L/100km (automatic vs manual)
• Boot Space: 185L
• Infotainment Display Size: 7.0-inches 
• ANCAP Safety Rating: Unrated
• Warranty: Three-year/150,000-kilometre

Suzuki Swift Sport

Starting from $22,490*

Our list wraps up with one of the most impressive and affordable sporty hatchbacks currently on sale in Australia, the Suzuki Swift Sport.

Sitting at the top of the Swift lineup, the Sport picks up a potent little turbocharged engine that, combined with its lightweight package and lively handling, makes for an exceptional little car for a spirited drive while remaining user-friendly and reasonably comfortable on more mundane trips around town.

• Engine: 1.4-litre turbocharged four-cylinder petrol 
• Power & Torque: 103kW/230Nm
• Fuel Consumption: 6.1L/100km 
• Boot Space: 265L
• Infotainment Display Size: 9.0-inches 
• ANCAP Safety Rating: Five-star
• Warranty: Five-year/unlimited-kilometre

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For more help with your search for a hatchback priced under $40,000 here in Australia, reach out to one of our car-buying experts who can help find you the best price.

* Prices accurate at time of writing.