I received a text tonight while the car was connected with Bluetooth but not smartlink. The car announced "new text from" name "do you want to hear it?" I Said yes and it read it out. So looks like you don't need smart link to have the car announce things. Just Bluetooth. It did offer me the chance to say something in reply.
There doesn't appear to be a setting to turn this on or off. I checked (while stationary) whether there is a voice option to send a text and there isn't via the touch screen. Maybe you can using the voice activated menu but I never use the skoda system, just use the built in voice features of the phone using smart link. Hope that helps.
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domhnall's post in Text message help required was marked as the answer