The brand will mirror the larger XC90 model line-up with three trim grades - the entry-level Momentum, the mid-range Inscription and the flagship R-Design - and petrol, diesel and plug-in hybrid four-cylinder models on offer.
All new 2018 Volvo XC60 models feature all-wheel drive, and all have eight-speed automatic transmissions.
There are two 2.0-litre turbo diesel versions available - the D4, which has 140kW of power and 400Nm of torque, and the twin-turbo D5, with 173kW and 480Nm.
There are two standard petrol drivetrains available, too: the T5 uses a 2.0-litre four-cylinder turbocharged engine and produces 187kW/350Nm, while the more powerful T6 churns out 235kW/400Nm because its engine makes use of a supercharger as well as a turbocharger.
The flagship drivetrain is reserved for the top-end model, only: the T8 plug-in hybrid combines the T6 petrol engine with a 10.4kWh lithium-ion battery pack and a 65kW/240Nm electric motor.
The T8's maximum combined outputs are a huge 300kW and 640Nm, allowing it to sprint from 0-100km/h in just 5.3 seconds, with claimed combined cycle fuel use of just 2.1 litres per 100km.
There's plenty of standard equipment fitted to the new-generation XC60, which undercuts competitors such as the Audi Q5 and Mercedes-Benz GLC on price: see below for the breakdown on what each of the trim grades has included as standard.
Volvo Cars Australia managing director Kevin McCann said the new XC60, which represents about 30 per cent of global sales for the brand, is an important addition to the brand's local model range.
Note: Local images not yet available.
"Volvo has a strong heritage in designing stylish and dynamic SUVs that offer the latest in technology. The All-New XC60 is no exception, even by our already high standards", said McCann.
"It is the perfect car for an active Australian lifestyle, and it represents the next step in our transformation plan," he said.
2018 XC60 standard equipment
Keyless entry with handsfree tailgate opening and closing
Collision mitigation support (forward collision warning with autonomous braking)
Lane keeping assistance
Rear cross-traffic alert
Rear collision warning and auto-braking
Front and rear parking sensors
Hill descent control
Hill start assist
Driver, passenger, front side, full-length curtain airbags
Cruise control with speed limiter
12.3-inch driver information display
2x USB ports
Bluetooth phone and audio streaming
Apple CarPlay and Android Auto
DAB digital radio
Dual-zone climate control
Leather seat trim
Leather-lined steering wheel and gearknob
Power adjustable driver's seat and front passenger seat
Auto-dimming rear-view and side mirrors
LED headlamps with active bending beams and auto high-beam lights
19-inch alloy wheels with tyre pressure monitoring system and temporary steel spare wheel
Inscription (adds over Momentum)
Adaptive cruise control
PilotAssist with steering assistance
Four-zone climate control
Unique grille finisher
20-inch alloy wheels with tyre pressure monitoring system and temporary steel spare wheel
R-Design (adds over Inscription)
Nubuck leather trim
Front seat cushion extension
R-Design exterior styling
Sport chassis (the above have the standard Dynamic chassis setup - Sport has a stiffer edge to it)
21-inch wheels with tyre pressure monitoring system and temporary steel spare wheel
Lifestyle Pack - includes heated front seats, panoramic sunroof, tinted rear glass - $2500, available on all models
Sports Pack - includes heated front seats, tinted rear glass, sports steering wheel, Bowers & Wilkins audio System, paddle-shifters, 20-inch diamond cut alloy wheels - $6500, available on Momentum and Inscription models only
Premium Pack - includes heated front seats, panoramic roof, tinted rear glass, power folding rear headrests, power folding rear backrest, Bowers & Wilkins audio system, air suspension - $7500
2018 Volvo XC60 pricing
Momentum D4 - $59,990
Momentum T5 - $62,990
Inscription D4 - $66,990
Inscription T5 - $69,990
R-Design D5 - $73,990
R-Design T6 - $76,990
R-Design T8 Twin Engine Plug-in Hybrid - $92,990
Prices exclude on-road costs.