How lenders calculate self-employed income
Lenders add back depreciation, one-off expenses, director loans and certain superannuation contributions to your taxable income. Done right, the difference is 20% of your borrowing capacity.
The four common add-backs
Depreciation (non-cash). One-off expenses (legal fees, restructure costs). Director loan adjustments (treating drawings as income). Discretionary superannuation contributions above 11.5%.
WARNING: This comparison rate is true only for the example given and may not include all fees and charges. Different terms, fees, or other loan amounts might result in a different comparison rate. Comparison rates are based on a secured loan of $30,000 over 5 years for vehicle finance and $50,000 over 5 years for equipment finance, as required under the National Credit Code.