When you are employed, a lender can see your income on a payslip. When you run your own business, the lender has to build that picture from your records, so the way your income is documented matters as much as the amount.
What lenders usually look at
- Tax returns and assessments. Many lenders ask for two years of personal and business returns, rather than relying on what you draw from the business.
- Stability. A steady income across both years is generally easier to assess than one strong year after a weak one.
- Direction. Lenders look at whether income is holding or growing, and may ask about a drop and what caused it.
- How the business is set up. Sole trader, partnership, company or trust structures are read differently, including how add-backs are treated.
If your paperwork is not ready yet
Returns can run behind, especially for a newer or fast-growing business. Some lenders offer low-doc options that rely on other evidence, such as business activity statements or an accountant’s declaration. These options usually come with different conditions, so they are worth comparing carefully against waiting until your returns are lodged.
Video transcript
Hi, I'm Jack Si from Australian Finance Service Solutions.
If you're self-employed, most lenders want two years of tax returns, not just your take-home pay. But it's not just about the number, it's about whether your income looks stable and trending the right way. There are also low-doc options if your paperwork isn't lender-ready yet.
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This is general information only and is not credit advice.
Want us to look at your situation? Send us a message or call 1300 968 888.
General information only, not credit advice. It doesn't take your personal circumstances into account.
Jack (Muyuan) Si is a Credit Representative (516785) of Buyers Choice Licencing Pty Ltd ACN 626 172 281 (Australian Credit Licence No. 509484).