How Self-Employed Income is Assessed
How lenders assess business owners, sole traders, and corporate directors.
Core Assessment Analysis
Assessing self-employed income requires two complete years of business tax returns and financial statements. Lenders calculate personal income from the director's taxable distributions or drawings. Depending on the lender's policy, permitted add-backs may include non-cash depreciation, genuine one-off operational expenses, excess super contributions, and company net profit retention where the borrower holds a controlling interest.
Why Underwriters Focus Here
Business revenue is inherently more volatile than PAYG salary, requiring deeper financial verification.
Key Outcome Assessment Factors
Business trading longevity, industry sector stability, and the presence of any tax debts or corporate liabilities.
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Self-employed tax returns must match ATO portal ledgers.
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