As the end of financial year (EOFY) approaches, smart businesses aren’t just closing the books — they’re looking for ways to reduce tax liability, improve cash flow, and upgrade assets without locking up capital.
For companies relying on vehicles, this is the perfect time to reassess your fleet setup. But instead of locking into long-term leases or committing to vehicle ownership (and all the maintenance headaches that come with it), many businesses are now choosing fleet subscription as their EOFY upgrade strategy.
Here’s how subscriptions can help your business stay mobile, flexible, and tax-effective before June 30.
Why EOFY Is the Right Time to Rethink Your Fleet
Maximise potential tax deductions on operating expenses (OpEx) Avoid lump-sum capital outlay or complicated depreciation schedules Scale your fleet up or down based on next year’s workload projections Refresh your vehicles before new projects kick off after EOFY
Instead of being stuck with assets that sit idle between contracts, subscription gives your business the right cars, for the right time — without the lock-in.
Subscription vs Leasing/Purchasing at EOFY: The Key Differences
| Item | Purchasing / Leasing | Karmo Subscription |
| Upfront Costs | Large deposits / loan repayments | $0 upfront |
| Contract Length | 2–5 years fixed | Month-to-month flexibility |
Maintenance & Repairs | Often out-of-pocket or separate contract | Included |
| Downtime costs | Still paying even when vehicle sits idle | Pause or reduce fleet anytime |
| Tax treatment | Depreciation (CapEx) | Operating expense (OpEx), often deductible immediately |
| Vehicle swaps | Not possible unless you sell/trade-in | Easy swap or upgrade |
Always confirm with your accountant how vehicle costs can be claimed for your business. Refer to ATO guidelines here: ATO – Motor Vehicle Expenses.
WIFM: How Subscription Supports Smarter EOFY Planning
Protect cash flow and avoid tying up capital in depreciating assets
As tax time approaches, consider how much capital is tied up in your vehicle fleet. Owning vehicles means significant upfront costs and ongoing depreciation, directly impacting your cash flow. A car subscription service frees up this capital, allowing you to invest it back into your business where it can generate growth, rather than letting it sit in depreciating assets.
Simplify tax reporting with one all-inclusive payment — no extra line items for insurance, rego, or repairs
Forget the headache of itemising every car-related expense. With a car subscription, you get one all-inclusive payment. This single, transparent invoice covers everything – insurance, registration, maintenance, and even roadside assistance. This drastically simplifies your accounting and streamlines tax reporting, saving your team valuable time and reducing the potential for errors.
Right-size your fleet before the new financial year begins
The new financial year is the perfect opportunity to optimise your operations. Are you paying for vehicles that sit idle, or do you frequently need extra capacity? A car subscription allows you to easily adjust your fleet size up or down as your business needs change, ensuring you always have the right number of vehicles without the long-term commitment or disposal challenges of ownership.
No balloon payments, no maintenance stress — it’s all sorted
Say goodbye to unexpected repair bills and the hassle of fleet maintenance. Car subscriptions eliminate balloon payments and the ongoing stress of vehicle upkeep. Servicing, repairs, and even tyre replacements are all managed by the subscription provider. This means predictable budgeting and more time for you to focus on what truly matters: running your business.
As Laura Harewood, Chief Revenue Officer at Karmo, puts it:
“EOFY is the perfect time for businesses to think about flexibility, not lock-in. Subscription lets you upgrade your fleet for the busy months ahead — without draining your cash flow or getting stuck with vehicles you may not need long-term.”
Ready to Upgrade Before EOFY (Without the Commitment)?
Get your business EOFY-ready with a fleet subscription that adapts to your needs — not the other way around. Discover amazing deals on SUVs in our Evolving Ownership For You (EOFY) sale.
