Self-Employed and Want a Home Loan? Can You Use Just Your Latest Tax Return and Financials?

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Updated October 2026 · General information for self-employed Australians.

Being your own boss is wonderful: flexible hours, no annoying manager, and a boss who completely understands when you want a day off. Then you apply for a home loan, and suddenly you have a very strict manager called "credit policy" who wants your paperwork. The question we hear constantly is: "Can I get a loan using only my latest tax return and financials?" The honest answer is: sometimes, depending on the lender, your history and your deposit. Here's how it really works.

The standard "full doc" requirement

For a standard (full documentation) home loan, most banks want to see two years of income history for a self-employed applicant. Typically that means:

• Personal tax returns for the last two financial years
• ATO Notices of Assessment for those years (or an accountant's letter confirming returns are lodged, if the notice isn't ready yet)
• Business tax returns and financial statements (profit and loss, balance sheet) for the last two years, if you operate through a company, trust or partnership
• Often the latest BAS statements and business bank statements
• ABN, GST registration and proof of how long you've been trading

The lender uses these to work out your assessable income. If your income was higher last year, many lenders average the two years. If it was lower last year, many use the lower figure or the latest year only, so a dip can reduce your borrowing power.

So, can you apply on one year only?

It depends on the lender and your circumstances. In practice:

• One year of returns and financials is an exception, not the norm. Some lenders will consider applicants with 12 to 24 months of self-employment if they have at least one full year of returns, a solid track record in the same industry (for example, a tradie who was employed for years before going out on their own) and a decent deposit.
• Shorter ABN timeframes exist at some lenders. As of mid-2026, published broker guides report that several lenders (including ANZ for sole traders, Bankwest up to 80% LVR and ME Bank) accept 18 months of ABN history rather than two years, and some professional packages (for doctors, accountants, lawyers, engineers and certain others) may accept 12 months on an ABN with one year of financials. These policies change quickly, so ask a broker for the current version.
• Notices of assessment only. At least one major bank offers a "fast track" style assessment for eligible self-employed borrowers using just the last two years of personal Notices of Assessment (no business financials). That's two years of income, not one, but with less paperwork.
• Less than 12 months usually means specialist or non-bank lenders and a bigger deposit (often 20% or more), with higher rates.

What lenders look at in your financials

• Income and its trend: rising, steady or falling?
• Add-backs: certain non-cash or one-off expenses (like depreciation, interest or non-recurring costs) can sometimes be added back to lift your assessable income. Your accountant can help present this.
• Salary versus profit: lenders look at what you actually draw as well as business profit, and how the business is structured (sole trader, company, trust).
• ATO debts: unpaid tax or payment plans can be a red flag, so lenders may look at your ATO integrated client account.
• Business stability: length of trading, industry risk, client concentration and cash flow.
• Personal conduct: credit history and how you manage your accounts.

Why accounting for tax can hurt your borrowing power

Here's the self-employed paradox: good tax planning can mean low declared income. If you maximise deductions to reduce your tax bill, lenders only see the lower taxable profit. That can mean you pay less tax and borrow less. If a home purchase is on your radar, talk to your accountant and broker a year or two ahead about balancing both goals.

Options if you don't have two full years

1. Shorter-history lenders (18-month ABN, professional pathways) if you fit their rules
2. Alternative/low-doc loans using BAS, business bank statements and an accountant's declaration (see our companion blog)
3. A larger deposit (20% plus), which broadens your choices
4. A guarantor or co-borrower with PAYG income
5. Waiting and building paperwork: sometimes a few months can change your options considerably

Checklist: self-employed document pack

• Personal tax returns and ATO Notices of Assessment (last 1–2 years)
• Business tax returns and financial statements (last 1–2 years)
• Business Activity Statements (recent quarters)
• Business bank statements (3–12 months) and personal statements (3–6 months)
• ABN and GST registration details, and evidence of trading start date
• Accountant's letter confirming returns are lodged and, if needed, your income
• ATO integrated client account statement showing any tax debts or payment plans
• Contracts, invoices or evidence of future income (helpful but optional)
• Details of business debts, leases and vehicle finance
• A short explanation of any big income changes
• Evidence of deposit and genuine savings
• ID (100 points)

Tips to improve your chances

• Lodge your returns on time, and clear any ATO debt before applying
• Keep business and personal accounts separate
• Avoid new business debts or equipment finance just before applying
• Ask your accountant about add-backs and how your financials are prepared
• Get a broker experienced in self-employed lending, since policy differences between lenders are huge

A little humour

For self-employed borrowers, "I'm between invoices" is not a financial strategy. But organised financials, a tidy BAS and an accountant who returns your calls are the closest thing you'll get to a golden ticket.

Official links

• ATO, sole traders and business income: https://www.ato.gov.au
• ATO, myGov Notices of Assessment: https://my.gov.au
• ASIC MoneySmart, home loans: https://moneysmart.gov.au
• ASIC, responsible lending and low doc review (REP 410): https://asic.gov.au
• Business.gov.au, ABN and GST: https://business.gov.au

Disclosure and Disclaimer

This article is general information only and is not financial, credit, legal, tax or investment advice. It does not consider your objectives, financial situation or needs. Lender policies for self-employed borrowers differ widely and change often. Please do your own research and obtain independent advice from a licensed financial adviser, mortgage broker, accountant and conveyancer or solicitor before making any decision. Loan approvals are subject to lender criteria. To the maximum extent permitted by law, our business, its directors, employees and brokers accept no liability for any loss or damage arising from reliance on this article.

Disclaimer: The information in this article is general in nature and does not constitute personal financial or credit advice. Speak with Amber Finance so we can look at your own situation in detail.