How Self-Employed Income Is Assessed

Self-employed income is evaluated differently from PAYG employment because earnings may fluctuate and depend on business performance.

Evidence requirements

Assessment typically relies on:

  • financial statements
  • tax returns
  • business activity history
  • sustainability of profits

Short trading history or volatile income can reduce recognised earnings.

Normalisation of income

Lenders may:

  • average income across years
  • exclude abnormal spikes
  • adjust for declining performance

This produces conservative recognised income.

Risk perspective

The objective is to determine whether income is stable and repeatable, not merely high in a single period.

This page explains assessment mechanics only and does not evaluate individual businesses.

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