Volvo Australia's price move responds to its direct rival, the Audi S4, which reduced its own starting price by $14,900 to $105,000 in April. The company says it has also listened to feedback from media including CarAdvice, which had listed its original $109,950 pricing as one of model's less positive attributes.
"This is a project we want to succeed, and we're proud we are listening to the influential Australian motoring media since we launched the car last year," said Volvo Australia spokesman Oliver Peagam. "And throughout the process we have made minor adjustments based on journalist and customer feedback. The realignment reflects that as well as monitoring our competitive set."
Those adjustments included equipment upgrades earlier this year, with the Volvo S60 Polestar adding paddleshift levers for the automatic gearbox, beefier sports seats, and bigger, Brembo brakes.
Australia became the test bed for Volvo's new Polestar tuning arm brand in 2013, with the original shipment of 50 units designed to see how the S60 Polestar fared in a country renowned for its love of performance sedans.
Volvo has since started to introduce the S60 Polestar - including a wagon body style - to other markets including the UK.
Volvo is giving both the S60 and Polestar additional marketing grunt by racing a V8-powered version of the S60 in Australia's V8 Supercars series.
The Volvo S60 Polestar road car is powered by a turbocharged six-cylinder engine.
Click to read our recent Audi S4 v Volvo S60 Polestar comparison test.