To consider self-employed income, your client will require 2 years of consistent income, which is supported by tax returns or their financial statements. For self-employed professionals, your client will need to be trading in their current business for a minimum of 1 year.
Employment history
Acceptable income types
The below guidelines are to apply and income to be considered in line with the borrower’s ownerships rights (e.g. shares, units):
- In an upward trend, a maximum income to be used is 120% of the previous year, not exceeding the highest year. The most recent year (i.e. the higher income year) can be used if the increase in income is ongoing and the applicant is able to provide year-to-date Business Activity Statements (BAS) for a minimum period of 6 months supporting revenue in line with the most recent year (i.e. >=90% annualised).
- In a downward trend, the income to be used is the most recent year. Additionally, year-to-date BAS supporting revenue in line with the most recent year (i.e. >=90% annualised) must be provided where both of the following apply:
- The most recent year's income has decreased by more than 20% of the previous year, and
- Cash out/equity release for any purpose is being sought on top of the refinancing of existing debt(s) plus a $5,000 allowance for costs (note, this does not apply where a deposit is being generated for a related purchase submitted through Macquarie).
- Rental income is to be taken out of the borrowers’ self-employed income and included in the rental income section to ensure the appropriate haircuts are applied.
Self-employed contract workers
Where self-employed income is greater than previous PAYG employment a maximum 120% of the PAYG income to be used, so long as this does not exceed the self-employed income. 
Using Business Activity Statements
From the 30th day following most quarters (except for the Oct-Dec quarter where the 60th day applies), BAS statements covering the period from the most recent financial statements through until the end of the most recent quarter are required.
Submitting supporting notes
Your client’s application should include:
- supporting notes clarifying how you’ve calculated the income used in the application, and
- any other mitigating factors to justify use of any non-standard add backs or entries on the financials supplied.
Allowable add-backs
- Directors’/Partners’ salaries (if not used separately in servicing calculations)
- Directors’ superannuation contributions in excess of the minimum compulsory amount
- Interest charges relating to loans being refinanced can be added back to net profit
- Business depreciation up to a total amount not exceeding 20% of business net profit
- Non-recurring expenses or one-off items subject to satisfactory confirmation from applicant’s accountant
- Distributions from a discretionary family trust to children under 18.
All applications are subject to credit approval.
For more information, refer to the Macquarie Residential Home Loans Credit Guidelines.
Who and what we finance
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Exit strategy -
Self-employed applications -
Security property location and LVR
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