AGL and Karmo's V2G Deal — Why EV Drivers Should Pay Attention
AGL has partnered with Karmo to manage its EV subscription fleet and explore V2G. Here's what it signals for Australian employees considering a novated EV lease.
Australia's largest energy retailer, AGL, has signed a deal with Karmo — the country's largest car subscription platform — to manage its electric vehicle fleet and explore vehicle-to-grid (V2G) technology [Source 1]. V2G lets an EV send power back to the grid when it's not in use, turning your car into a mobile battery. That's a meaningful shift in how EVs are valued — not just as transport, but as energy assets.
This is early-stage stuff. No V2G rollout has been confirmed yet, and the deal is focused on fleet management first. But it signals that major Australian energy players are taking EV infrastructure seriously enough to build commercial agreements around it.
What this means for novated lease customers
If you're an Australian PAYG employee weighing up whether to get an EV on a novated lease, this news matters for a few reasons.
First, the ecosystem around EVs is maturing fast. Energy retailers are now actively structuring products around EV ownership — which means things like home charging integrations, time-of-use tariff optimisation, and eventually V2G income could become real, accessible benefits for everyday EV owners, not just fleet operators.
Second, the FBT exemption for eligible EVs under a novated lease remains in place as at the date of this article — meaning a significant portion of your lease costs can be pre-tax. Combined with potential future V2G benefits, the financial case for an EV novated lease is only getting more interesting. That said, the V2G opportunity is still speculative at this point — don't factor it into your lease decision today. What is concrete is the tax treatment, and that's where we'd focus your attention first.
Common questions
What is V2G and how could it benefit me as an EV owner?
Vehicle-to-grid (V2G) technology allows your EV's battery to export electricity back to the grid or your home. In theory, this could generate credits or reduce your energy bill. It's not widely available to consumers in Australia yet, but deals like the AGL–Karmo agreement suggest it's being actively developed.
Does a novated lease make sense for an EV right now, before V2G is available?
Yes — the existing FBT exemption for eligible EVs is the primary financial lever, and it's available now. V2G is a potential future upside, not a reason to wait. The tax savings through a novated structure are real today.
Is Karmo's car subscription the same as a novated lease?
No. A car subscription is a flexible, all-inclusive monthly arrangement — you can return the car with short notice. A novated lease is a three-way salary packaging agreement between you, your employer, and a financier, structured to deliver pre-tax benefits. They suit different needs and different financial situations.
Which EVs are eligible for the FBT exemption on a novated lease?
Broadly, battery electric vehicles and plug-in hybrids below the luxury car tax threshold may be eligible. The rules have specific conditions, so it's worth getting a clear answer based on the vehicle you're considering — millarX can walk you through this before you sign anything.
Should I be excited or sceptical about this AGL–Karmo deal?
Cautiously interested is probably the right stance. It confirms that serious commercial energy players see EVs as infrastructure, not just vehicles. But V2G consumer benefits are not here yet — this is a fleet-level exploration. Watch this space.