Probation, Contract, and Casual Income Policy

Canonical question

How do lenders treat income earned under probation, fixed-term contracts, or casual employment, and what conditions move it from conditional to acceptable?

Jurisdiction: Australia

Domain: Credit assessment — employment status sensitivity

Applies to: Residential and asset finance; also relevant where PAYG supports commercial facilities

Decision definition

Employment status affects two policy questions:

  • continuity risk: will the income keep flowing?
  • predictability risk: are earnings stable enough to rely on?

Probation, contracts, and casual employment increase both risks. Lenders respond by:

  • requiring more history
  • requiring employer confirmation
  • reducing recognition via shading/averaging
  • limiting lender pathways
  • delaying applications until conditions are met

Probation income

Key policy tests:

  • probation completed vs ongoing
  • time in industry and role type
  • employer type and stability
  • income consistency since commencement

Outcomes often include:

  • full inclusion with strong mitigants (policy dependent)
  • conditional inclusion
  • deferral until probation ends

Fixed-term contract income

Key tests:

  • contract length remaining
  • renewal history and likelihood
  • industry demand and role continuity
  • evidence of ongoing pipeline (where considered)

Short remaining term commonly triggers:

  • conditional recognition
  • requirement for renewal letter
  • exclusion if end date is too near settlement

Casual employment income

Key tests:

  • length of casual history
  • stability of hours and gross earnings
  • pattern of income across seasons
  • reliance on overtime/penalties

Casual income is often:

  • averaged
  • shaded
  • treated more conservatively where hours are irregular

Related income recognition questions

  • PAYG income stability
  • Income history requirements
  • Income continuity evidence
  • Bonus, overtime, and commission treatment
  • Unstable income decline conditions

Structured borrower mapping

Applying this assessment logic

Employment status sensitivity is heavily timing-dependent.

Structur helps you map start dates, probation end dates, contract terms, and income pattern so you can see how policy may apply before seeking credit assistance.

→ Map your situation in Structur

Canonical status: Foundational reference

Role in lending assessment: Determines whether PAYG income is treated as ongoing or conditional

Next canonical question: Unstable income decline conditions

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