If you earn your income through your own business or non-salaried work rather than as an employee, you’re considered self-employed. This includes a wide range of Australians who work independently or operate their own businesses.
Common examples of self-employed borrowers include:
Business owners
Freelancers and independent contractors
Company directors and shareholders
Sole traders and tradespeople (like electricians, builders, and plumbers)
Self-funded retirees earning income from investments
Unlike salaried employees, self-employed applicants are assessed differently by lenders. While criteria may vary, most lenders will look for the following:
ABN and GST registration: You’ll generally need an ABN that has been active for at least 6 to 24 months. If your business earns over $75,000 annually, GST registration is typically required.
Income stability: Lenders often request at least two years of tax returns, though some may accept alternative income verification for newer businesses.
Credit score: A score of 650 or higher will improve your chances of approval.
Consistent business performance: Lenders assess cash flow, bank statements, and profitability to ensure the business is sustainable.
To assess your income and financial stability, most lenders will ask for detailed documentation. Having these ready will streamline the application process:
Personal tax returns from the past two financial years
Latest ATO Notice of Assessment or a signed accountant’s letter confirming your tax returns are lodged and final
Business tax returns from the same two financial years
Accountant-prepared financials: Profit and Loss statements, balance sheets, and depreciation schedules
Evidence your business has been profitable for at least the last two years
An active ABN for a minimum of 6 to 24 months
Business Activity Statements (BAS), especially if earning over $75,000 annually
Trust deed and distribution statements, if applying through a trust structure
Tip: Incomplete or missing documents can delay your approval—so it’s important to have everything ready and up to date before applying.
