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Australian Lending Policy Reference

How Self-Employed Income is Assessed

How lenders assess business owners, sole traders, and corporate directors.

Vetted and updated: 2026ACL 387460 Vetted

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.

Your pathway from here
General Information Only

Self-employed tax returns must match ATO portal ledgers.

Model Mortgages Pty Ltd | Australian Credit Licence 387460

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