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