AGL and Karmo's V2G Deal — What EV Drivers Should Know
AGL has partnered with Karmo to manage its EV subscription fleet and explore V2G. Here's what that means if you're considering a novated lease on an EV.
Australia's EV infrastructure story just got a little more interesting. AGL — the country's largest energy retailer — has signed an agreement with Karmo, Australia's largest car subscription platform, to manage its electric vehicle fleet and operations. According to The Driven [Source 1], the deal also opens the door to vehicle-to-grid (V2G) technology, which lets EVs feed stored power back into the electricity network.
This isn't just an energy company dabbling in cars. It's a signal that the big players are treating EVs as mobile batteries — assets that can earn value beyond getting you from A to B. V2G is still early-stage in Australia, but deals like this one accelerate the commercial groundwork needed to make it mainstream.
What this means for novated lease customers
If you're weighing up a novated lease on an EV right now, the AGL–Karmo deal is worth paying attention to — not because it changes your tax position today, but because it shapes the longer-term value proposition of owning an EV in Australia.
V2G-capable vehicles could eventually deliver additional value to drivers by exporting power during peak periods. That's on top of the existing benefit structure for EVs under a novated lease, where eligible battery electric vehicles are currently exempt from fringe benefits tax (FBT) under the federal government's EV discount policy. More commercial V2G infrastructure means the total cost of running an EV — including energy costs — could trend lower over time.
The subscription model Karmo runs is a different product to a novated lease, and it's worth being clear on that distinction. A novated lease ties your vehicle to your salary package, giving you pre-tax benefits your employer facilitates. A subscription is month-to-month flexibility with no ownership pathway. Neither is universally better — it depends on your employment situation, how long you plan to keep the vehicle, and how much certainty you want. What this deal does confirm is that institutional appetite for EV fleet management in Australia is growing fast.
Common questions
What is V2G and why does it matter to EV owners?
Vehicle-to-grid (V2G) technology allows a compatible EV to export stored battery power back to the electricity grid or your home. In practical terms, it means your car could earn credit or reduce your energy bills when parked. The AGL–Karmo deal suggests commercial V2G rollout in Australia is moving closer to reality.
Does the AGL–Karmo deal affect the FBT exemption on novated lease EVs?
No. The FBT exemption for eligible battery electric vehicles under a novated lease is set by federal legislation and is unrelated to this commercial partnership. The AGL–Karmo agreement is about fleet management and V2G infrastructure, not tax policy.
Is a car subscription better than a novated lease for an EV?
It depends on your circumstances. Subscriptions offer flexibility with no long-term commitment. Novated leases offer meaningful pre-tax benefits for PAYG employees who want to keep the car for two to five years. If you have stable employment and a vehicle in mind, a novated lease typically delivers stronger potential savings.
Which EVs are currently eligible for the FBT exemption on a novated lease?
Eligible vehicles must be battery electric or plug-in hybrid (PHEV) models first held and used after 1 July 2022, with a value below the luxury car tax threshold. Your novated lease provider can confirm eligibility for specific models before you commit.
Will V2G-capable vehicles attract different novated lease treatment?
There's no specific ATO guidance on V2G income from novated lease vehicles at this stage. If V2G becomes commercially available to private EV owners, tax treatment of any earned credits would need to be clarified by the ATO. We'd recommend watching this space closely.