In short: Lenders assess self-employed income from your tax returns and notices of assessment, usually two years, sometimes one. They start with your declared net profit, add back non-cash expenses like depreciation, and often use the lower or an average of the two years. Cash income that was never declared does not exist to a lender. Restaurants, cleaning, transport and rideshare each have quirks, and presenting them properly is the job.
Key takeaways
- Full-documentation lenders want two years of personal and business tax returns, notices of assessment, and often the last year's financials. Some lenders accept one year with a strong file.
- Your borrowing power is based on declared taxable income plus permitted add-backs, not on turnover and not on cash you did not declare.
- Lenders average or take the lower of two years if income fell; if it rose sharply, most cap the increase they will recognise.
- An ABN that is under two years old, or a business that only recently registered for GST, limits which lenders will consider you.
- Rideshare and delivery income is assessed from annual platform statements and your tax return, after vehicle costs.
A large share of Nepali-Australian households in Melbourne's north run a business or drive for one. Restaurants and cafes, commercial cleaning, courier vans and trucks, Uber and DiDi. These are real, bankable incomes, but they arrive at the assessor's desk in a very different shape from a payslip. This post explains how each is read.
The documents lenders start with
| Document | What the assessor uses it for |
|---|---|
| Personal tax returns, 2 years | Your taxable income, business share and other income |
| Notices of assessment, 2 years | Confirms the ATO accepted the returns; shows tax debt |
| Business tax returns and financials (company, trust, partnership) | Net profit, wages paid to you, retained earnings |
| Business activity statements, last 4 quarters | Turnover trend, used by low-doc lenders and to sanity-check the return |
| ABN and GST registration dates | Length of self-employment |
| Business bank statements, 3 to 6 months | Cash flow, undeclared income (which is a problem, not a bonus) |
| Accountant's letter | Some lenders accept this in place of financials on low-doc products |
Lodge your returns on time. An overdue return or an unpaid ATO debt is one of the fastest ways to be declined. The ATO publishes lodgement dates for individuals and businesses.
Add-backs: the income you did not know you had
Assessors add certain expenses back to net profit because they reduce tax but not cash. Typical add-backs include depreciation, interest on business loans that will be paid out, one-off expenses you can evidence, superannuation contributions above the compulsory amount, and salary paid to yourself from your company. A truck owner who claimed $18,000 of depreciation on the vehicle has $18,000 more income than the bottom line suggests, if the lender allows the add-back. Not all do, and how a broker presents the file matters. See how lenders assess self-employed income for the full list.
Industry by industry
Restaurants and cafes
Lenders see high turnover, thin margins and a lot of cash. The assessor works from the business's net profit and your wages or drawings. Cash takings that never hit the till or the return cannot be counted, and a bank statement showing more deposits than the return declares invites questions rather than credit. Seasonal dips are normal; a sustained fall between years is not. If the premises are leased, the lease term and rent are part of the picture.
Cleaning businesses
Often a sole trader or partnership with a few contracts and subcontracted workers. Lenders like the recurring contract income and want to see it in the BAS. The common problems are a short ABN history, mixing personal and business banking, and paying workers in cash. Keep a separate business account and put contracts in writing.
Transport, trucks and couriers
Vehicle finance is usually the largest liability, and depreciation the largest add-back. Owner-drivers contracted to one company are sometimes assessed as employees on a contract, which can be easier. Fuel and tolls make gross income look large; the assessor uses net.
Rideshare and delivery
Uber, DiDi and delivery platforms provide annual income summaries. You are a sole trader, and the income counted is your net after vehicle expenses as declared on your tax return. Drivers who claim every possible deduction to reduce tax then find their assessable income is low. Some lenders treat rideshare as a secondary income only, and want at least 12 months, often two years, of history.
Worked example: a restaurant owner and a PAYG spouse in Craigieburn
Dipesh owns a restaurant through a company; his wife Manisha is a PAYG nurse earning $88,000. They want a $720,000 house in Craigieburn.
| Item | 2024–25 | 2025–26 |
|---|---|---|
| Company net profit after Dipesh's wages | $22,000 | $31,000 |
| Wages paid to Dipesh | $60,000 | $65,000 |
| Depreciation add-back | $9,000 | $8,000 |
| Dipesh's assessable income to the lender | $91,000 | $104,000 |
Most lenders would use an average, around $97,500, or the lower year. Combined with Manisha's $88,000, household income for servicing is about $185,000. For illustration at 6.00% p.a., assessed with the 3 percentage point buffer, that comfortably supports a $576,000 loan (80% of $720,000), with a $144,000 deposit and no LMI. Run your own numbers through the borrowing power calculator. If Dipesh had declared only $45,000 to minimise tax, the same household would borrow far less, which is the trade-off every business owner should discuss with their accountant a year before buying.
When full-doc does not work
If your returns are not ready or your ABN is young, low-doc loans let some lenders assess on BAS, business bank statements or an accountant's declaration. Rates are higher and deposits larger. Read the self-employed home loan guide and the two-years-of-tax-returns myth before assuming you have to wait.
Frequently asked questions
Do I need two full years of tax returns?
Most lenders prefer two, but several accept one year if the ABN has been registered for at least 12 months, sometimes with a BAS to support it. Low-doc products may not need returns at all. The trade-off is fewer lenders and sometimes a higher rate. A broker can tell you in one conversation which lenders fit your history.
Can I count cash income from my restaurant or cleaning work?
Only if it was declared in your tax return. Lenders assess declared, taxed income. Undeclared cash is not usable and, if it is obvious from bank statements, can raise integrity concerns that hurt the application. The right time to fix this is at least a year before you buy, with your accountant.
Is rideshare income treated like a job?
No. You are self-employed, and lenders assess net income after vehicle expenses from your tax return and platform summaries. Most want 12 to 24 months of history. Some treat rideshare as supplementary income and give it less weight. If it is your only income, expect to show a longer track record and a strong deposit.
Does my accountant need to be involved?
Yes, and early. Lenders may ask for an accountant's letter, business financials or clarification of add-backs. The bigger role is planning: how much income to declare, when to buy a vehicle, and whether a company or trust structure changes what the lender can count. Moneysmart has guidance for choosing a registered professional.
Talk to GNT Finance
Gorakh Timilsina spent years as a senior credit officer assessing self-employed files, so he knows which add-backs each lender allows and how to present a restaurant, cleaning or transport business in its best light. Our service is in English, Nepali and Hindi, at no cost to you for our home-loan service in most cases. Book a free consultation or call 0426 403 703. Explore our self-employed loans and Nepali mortgage broker pages, and if you are still on a temporary visa, read home loans for visa holders, the FIRB approval explainer and our new migrants guide.
This is general information, not migration, legal, tax or credit advice. Migration rules change often — confirm with a registered migration agent (MARA) or the Department of Home Affairs.
Written by Gorakh Timilsina
Founder, CEO & Senior Mortgage Consultant at GNT Finance. Gorakh started as a broker assistant, spent years as a senior credit officer assessing loan applications, and now helps Melbourne families get the right loan approved. English, Nepali and Hindi spoken.