Carmody began work on the highly acclaimed Obernewtyn Chronicles at the age of fourteen. She continued to work on them while completing a Bachelor of Arts, majoring in literature and philosophy, she worked in public relations and journalism
Carmody currently divides her time between her home on the Great Ocean Road in Australia, and her travels abroad with her partner and daughter, spending a year each in her two residences. The Stone Key, book five of the Obernewtyn Chronicles was released in February 2008. The Sending, book six of Carmody's Obernewtyn Chronicles, is due for publishing in late 2010 or early 2011.
Carmody was Guest of Honour at the 2007 Australian National Science Fiction Convention, Convergence 2, held in Melbourne in June 2007.