New Subaru Outback Premium 3 Minute Review

The 2026 Outback “Premium” is second from the bottom of the range, a great place to start a quickie look at the new generation of the Subaru SUV.

It is a world away from the ageing model it replaced, and the post-apocalyptic, Mad Max exterior is appealing to those who might fancy venturing up a mucky track to pitch a tent. Get a room people. Good god this isn’t the 10th century. It will be polarising no doubt, but we love the modular Lego look.

But, I digress. Outback is a unicorn as the last pumped-up “affordable” AWD wagon left standing. All before it have fallen. The VW Passat Alltrack remained largely unloved and along with many other Volkswagen models, dropped off the sales charts, then the website soon after.

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A dark grey Subaru Outback SUV parked on a coastal cliff, overlooking the ocean at a golden sunset.

Two Subaru Outback Wilderness SUVs, one blue and one dark green, parked on a sandy bank.

A blue Subaru Outback Wilderness drives on a dusty dirt track through a eucalyptus forest, kicking up red dust.

Rear-three-quarter view of a blue Subaru Outback Wilderness parked on a sandy bank beside a shallow stream.

Dashboard of a Subaru Outback Wilderness, showing a large central touchscreen, digital instrument cluster, and steering wheel with orange accents.

Close-up of a Subaru Outback’s infotainment screen showing “Recent Calls” and “FM Radio” options, with air vents below.

Close-up of a Subaru Outback’s windscreen, showing three black driver-assist cameras and sensors mounted internally.

ABOVE: Outback

At almost 60k drive-away, the Outback is in the same price range as the smaller but vastly overpriced RAV4. But, if we add the Chinese upstarts into the mix, the decline in the Outback’s sales starts to come into focus.

RAV4 has held the top sales spot many times over the years. It has crept into a bracket where it is precariously pitted against better equipped Chinese models that are much cheaper. Outback, luckily, has rarity on its side. Name another 60k high-riding AWD wagon.

The cabin has a similar look and feel to the masculine metalwork outside. The Android-based infotainment system has a thin Subaru skin, and the screen has an odd frame on the upper edge. Subaru has returned physical climate controls, but the driver bongs are hidden in menus.

To turn them off, much spelunking is required, but the system is still preferable to Subaru systems past.

The drive highlights a hole in performance. Sporty, outdoorsy types with wetsuits and camping gear will want pep in their step, and the 137kW/254Nm is hopelessly underpowered for a wagon this generously proportioned. The 1732kg wagon is further hamstrung by a CVT which, while possibly one of the best in the business, does not belong in a modern car. Why auto makers insist on using them remains a mystery. It saps any kind of fun from a drive despite its stepped gear simulations. Its 9.6 second 0-100 feels downright relaxed, and fully laden, would be considered sluggish.

There is no hybrid as yet, but its e-CVT would be preferable to this rubber band-esque unit.

ADAS took a bit of getting used to, with steering and cruise doing a nice job of creating a relaxed highway experience.

However, yes, the dreaded “however”, the driver monitor is an abomination. It warns about driver distraction and hands off wheel even when all you’re doing is trying to look at the screen to see what the warning is. The insufferable intrusion has to be silenced every trip and makes the Subaru undriveable until the toggle has been clicked.

The ride on the MacPherson front and double wishbone rear is excellent. Handling is very Subaru. The body is tight, and even with a considerable amount of heft behind it, corners are rather fun.

All Japanese brands have taken a huge hit for the first 2 quarters of 2026, and price and value are chief among reasons cited by shoppers. They simply can’t continue with business-as-usual.

To summarise:

The 2026 Subaru Outback Premium is in an increasingly indefensible position as legacy Japanese brands haemorrhage market share to high-tech Chinese brands.

Subaru wants $53,490 plus on-roads for a sluggish 2.5L engine, a loud CVT drone, and an intrusive EyeSight safety suite. Meanwhile, newer Chinese entrants are netting more and more of the local market by offering premium cabins, superior hybrid powertrains, and integrated tech for many shekels less.

This gaping contrast perfectly illustrates the flashing red warning from former Kia Australia chief Damian Meredith. He said traditional brands have just three years to fix their complacency before highly competitive Chinese manufacturers permanently conquer up to 60% of Australian new car sales.

By continuing to dump archaic drivetrains and unrefined safety tech into Australian showrooms, Subaru has left the Outback Premium entirely exposed to a fast-moving tsunami of Chinese competition that is brutalising all legacy brands on the VFACTS sales charts.

As good as the Outback looks, 137kW and a CVT simply can’t match the chutzpah of the super-hybrid brigade, AWD or not.

Subaru Outback Premium

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Written by Alan Zurvas

Alan Zurvas is the founder and editor of Gay Car Boys, Australia's leading LGBTQI+ automotive publication. Before launching GCB in 2008, Alan's automotive writing was published in SameSame.com.au and the Star Observer. With over 16 years of hands-on car reviewing experience, Alan brings an honest, irreverent voice to every review — championing value and innovation over brand loyalty.