Browse our novated subscription cars
BYD
ATTO 1 Essenti...
$126.16
Per Week
BYD
Sealion 7 Prem...
$185.50
Per Week
Mazda
CX-5
$226.01
Per Week
Zeekr
7X RWD
$247.32
Per Week
BYD
Shark 6 Perfor...
$358.24
Per Week
Mercedes-Benz
GLA200
$379.05
Per WeekLooking for a novated option?
Why get a novated subscription
- Keep all the tax savings
Enjoy the exact same financial perks as a traditional novated lease. A novated subscription also allows you to package your car and running costs into one payment made from your pre-tax salary. If you choose a suitable EV you can also maximise savings through the government’s EV Fringe Benefits Tax (FBT) exemption.
- No long-term lock-ins
Traditional novated leases usually trap you in strict 3-to-5-year contracts. A Karmo novated subscription gives you ultimate flexibility with much shorter terms. Whether you want to test out the EV lifestyle or need a vehicle that adapts to your changing circumstances, you are never weighed down by a long-term commitment.
- Zero residual payouts
This is the ultimate game-changer. Standard novated leases require a hefty residual (balloon) payment at the end of your term, leaving you exposed to depreciation and negative equity. With a novated subscription, there is absolutely no residual risk. When your term is up, you simply hand the keys back with nothing more to pay.
- Effortlessly swap and upgrade
Car technology is advancing at lightning speed. Unlike a traditional lease where you are stuck with aging tech, a subscription ensures you never fall behind. At the end of your term, you can seamlessly hand back your car and swap into a brand-new vehicle with the latest features.
Karmo has partnered with Smart, Australia’s leading salary packaging and novated leasing provider, and is redefining how Australians get behind the wheel with a Novated Subscription. This is a first-of-its-kind product that blends the tax efficiency of novated leasing with the flexibility and convenience of car subscription.
The benefits
Tax savings with real flexibility
Get the tax perks of novated leasing without long-term lock-ins.
Swap or upgrade anytime
Change cars as life changes, with no ownership headaches
Fast, hassle-free driving
Minimal paperwork, quick approvals and premium cars ready to go.
One simple, all-inclusive payment
Car, insurance, rego, servicing; all wrapped into one predictable pre-tax payment.
A win for employers
Boost your employee benefits at zero cost and minimal admin
Trusted Smart Group expertise
Backed by one of Australia’s leading salary packaging providers for a smooth, compliant setup.
See How Karmo Compares
Still comparing your options? Here’s how we stack up against Novated leasing.
Table
Novated
Subscription
Novated Leasing
Minimum commitment
4 months
Usually 2-5 years
What’s included
Registration, insurance, servicing
Usually the car only
Credit score impact
No
Yes
Exit flexibility
Yes
Limited
To get started
Refundable bond + 2 weeks upfront
Deposit + fees apply
Vehicle age/quality
Always new cars
New cars
Depreciation risk
No
Yes
Pick-up time
Within 2 weeks
Within 30 days
See how Karmo's subscription compares
Still comparing your options? Here’s how Karmo’s Novated Subscription compares to personal subscription, traditional novated leasing and buying a car.
Novated Subscription
Personal Subscription
Novated Leasing
Buying
Minimum commitment
4 months
4 months
2-5 years
Ongoing
To get started
Refundable bond + 2 weeks upfront
Refundable bond + 2 weeks upfront
Deposit + fees apply
Large upfront deposit
Credit score impact
No
No
Yes
Yes (Finance)
Exit flexibility
Yes
Yes
Limited
No
Vehicle age/quality
Always new cars
Always new cars
New cars
Varies
Depreciation risk
No
No
Yes
Yes
Time to get into a car
Within 2 weeks
Usually same day
Within 30 days
Within 30 days
What’s included
Registration, insurance,
servicing
Registration, insurance,
servicing
Varies
Car only
Enquire now
Complete our quick and easy enquiry form, and our team will reach out.
How do kilometre allowances and excess distances work on my novated subscription?
Every Karmo plan includes a generous 385 km/week allowance, which works out to just over 20,000km per year. Your unused kilometres are automatically saved and accrued, so you can use them later for long weekend road trips without any extra charges. If you happen to exceed your total accumulated kilometre allowance, an excess km fee is charged at a standard rate of 30 cents per kilometre.
What costs are included in the weekly fee on my novated subscription?
To minimise your exposure to unexpected bills, Karmo bundles all standard vehicle operating costs into one transparent fee. Your pre-tax salary sacrifice payments cover:
- The cost of your brand-new vehicle
- Comprehensive automotive insurance
- Local state vehicle registration
- All routine servicing and maintenance
- Emergency roadside assistance
The only costs you are personally responsible for covering are your everyday fuel or charging costs and toll charges.
How is the regular payment for my novated car handled?
The payment process is automated through your workplace’s internal payroll cycle. Your employer handles the necessary calculations, taking the precise subscription amount directly out of your pre-tax (or a structured combination of pre- and post-tax) salary before your net pay hits your personal bank account. The payroll department then makes the payment straight to Karmo, making your vehicle budgeting entirely predictable.
What are the tax benefits, and how do EV fringe benefits work on a novated subscription?
A Novated Subscription unlocks the exact same tax advantages as a traditional novated lease. By deducting your regular car payments directly from your pre-tax salary, you effectively lower your total taxable income, your annual income tax obligation. Furthermore, eligible Electric Vehicles (EVs) that sit below the luxury car tax threshold qualify for full Fringe Benefits Tax (FBT) exemptions under current Australian legislation. This allows you to maximise your tax savings and optimise your take-home pay while driving a brand-new vehicle.
Can Karmo service my plan if my company has an exclusive salary packaging agreement with an alternative provider?
No. Karmo’s Novated Subscription is powered exclusively through our partnership with Smart. If your employer operates under an exclusive contract with an alternative provider, we won’t be able to support you in a Novated Subscription. In these instances, you can still drive a brand-new vehicle by applying for a flexible Karmo Personal Subscription.
What happens to my novated subscription if I change jobs?
Traditional novated leases carry a heavy “employment dependency risk,” meaning if you lose or switch your job, the contract instantly breaks and you are left personally liable for lease payouts. A Karmo Novated Subscription offers career portability. If you change employers, you can transition the salary-packaged plan over to your new workplace or convert it into a standard Karmo Personal Subscription paid via your post-tax income.
Frequently Asked Questions
Not sure about how a novated subscription works? Here are some common questions our customers have had.
