When you apply for a home loan, your income is the foundation. Lenders need to feel confident that you can repay what you borrow.
That’s why tax returns are such an important part of your application. They’re a keyway to verify your income, assess your serviceability, and spot any red flags before moving forward.
Think of your tax returns as the financial snapshot lenders use to answer three core questions:
Do you earn enough to afford the loan?
Is your income stable and reliable?
Are there any debts or liabilities they should know about?
Lenders use your tax return data to help calculate your borrowing power and to check your existing financial commitments. The more accurate and up-to-date your documents are, the smoother your application process will be.
Documents required for PAYG borrowers
If you’re a salaried or hourly employee (what lenders call a PAYG applicant), the tax return requirements are relatively straightforward.
Here’s what you’ll typically need to provide:
Two most recent payslips
These should show your full name, employer, and year-to-date income. Some lenders may also request an employment letter for additional verification.
Latest Notice of Assessment (NoA) from the ATO
Your NoA confirms your total taxable income and any tax debt. Lenders use it to cross-check your payslips and ensure consistency.
Group Certificate or Income Statement
Optional in some cases, but useful to support your annual income. Especially important if you’ve changed jobs or work variable hours.
Tip: The clearer your documents are, the fewer follow-up questions you’ll get from lenders. Your Aussie Broker can help check them for completeness before submitting your application.
Self-employed applicants
If you’re self-employed, the documentation gets a little more detailed, but with the right support, it’s nothing you can’t handle. Most lenders will ask for:
Two years of personal tax returns
To show your total income, deductions, and any other financial obligations.
Two years of business tax returns
These include your business’s income and expenses, giving lenders insight into how much profit you’re making.
Two years of financial statements
Usually prepared by your accountant (profit and loss plus balance sheet).
Notice of Assessment for both years
Just like PAYG borrowers, this confirms your declared taxable income and tax status.
Trust tax returns (if applicable)
If your income flows through a family trust or other structure, you’ll need to provide the trust’s returns and distribution statements.
You might also be interested in: Understanding taxes when buying and selling a home in Australia
Understanding the age of tax returns
One of the most common pain points for buyers is understanding which financial year’s documents you need to submit.
When lenders say “most recent completed financial year,” they mean the last tax year that’s been lodged and assessed.
For example:
If you apply for a home loan in January 2025, the most recent tax year completed is FY 2023-24 (ending 30 June 2024).
If you haven’t lodged yet, lenders will usually accept FY 202-23, but some may ask for an updated Business Activity Statement (BAS) or profit & loss statement.
Application date | Tax year required |
|---|---|
August 2024 | FY 2023-24 (if lodged) or FY 2022-23 |
February 2025 | FY 2023-24 or FY 2022-23 |
July 2025 | FY 2024-25 (if lodged) or FY 2023-24 |
Lenders typically want tax returns that are no older than 18 months at the time of your application.
You might also be interested in: Stamp duty concessions for non-first-time home buyers
Alternatives: Low-doc and no-doc loans
If you can’t provide full tax returns, there are other options, though they come with conditions.
What is a low-doc home loan?
Low-doc (low documentation) loans are designed for borrowers who can’t provide traditional proof of income, like recent tax returns. Instead, you may be able to use:
BAS statements
Business bank statements
An accountant’s declaration
These loans may have higher interest rates, stricter lending criteria, or require larger deposits.
What is a no-doc loan?
No-doc loans are extremely rare in Australia and typically limited to niche lenders. They carry much higher risk, and you’ll usually need significant equity or a very strong asset position.
SMSF loan tax return requirements
If you’re using a Self-Managed Super Fund (SMSF) to buy an investment property, the requirements are slightly different.
You’ll usually need:
Two years of SMSF tax returns
Trust deed and compliance documents
Fund member statements
Evidence of contributions or rental income
Loan servicing projections from your accountant
Because SMSF loans are considered “asset-lend,” the focus is on the performance of the fund, not your personal income.
You might also be interested in: Buying property with super: A guide to SMSF investment
Top tips for preparing your tax returns
Getting organised early can make a big difference in how quickly your application moves.
Here’s how to stay ahead:
Lodge your returns early: don’t wait until the last minute.
Use the ATO pre-fill service to speed up your lodgement.
Keep digital copies of all your returns and assessments.
Label your documents clearly: especially if self-employed.
Review everything with your accountant and your Aussie Broker.
If you’re using the Aussie App, it’s easy to upload your files directly and securely, saving time and back-and-forth emails.
Common tax return pitfalls (and how to avoid them)
Missing or incorrect tax documents are one of the top reasons for delays in home loan approvals.
When applying for finance, it’s important to watch out for a few common red flags. Undisclosed liabilities like car loans or HECS/HELP debt can raise concerns with lenders.
For business owners in particular, outdated financials can create delays or lead to inaccurate assessments.
And finally, if there’s a mismatch between the income you’ve declared and the income stated on your application, it can significantly impact your borrowing capacity or even result in rejection.
How Aussie brokers can help
Applying for a home loan can be a paperwork slog, but with an Aussie Broker, you’ve got someone in your corner to:
Review your documents
Catch issues early and avoid lender delays.
Work with your accountant
Make complex structures easy to explain.
Match you with the right lender
Find a home loan that fits your income and goals.
Flag red flags upfront
Tackle any surprises before they slow you down.
Guide your digital uploads
Send everything securely via the Aussie App.
Support all applicant types
From PAYG to self-employed, low-doc to SMSF, we’ve got you.
Whether you’re ready to buy or just doing the groundwork, we’re here to help make it simpler.
You might also be interested in: Your guide to the home loan application process
FAQs
Do lenders accept draft tax returns?
Generally, no. Most lenders require lodged and assessed tax returns, supported by an official Notice of Assessment from the ATO.
Can I use older tax returns with recent BAS?
Some low-doc lenders may accept this combination, but mainstream lenders typically want your two most recent years of tax returns.
How long does the ATO pre-fill take?
It can take up to a few weeks after the end of financial year (30 June) for the ATO to finalise your data. Using a tax agent may speed up the process.
Can I get a mortgage without providing tax returns?
Yes, but it depends on the type of loan and your situation. Low-doc or asset-based loans may be an option, but they usually involve stricter conditions or higher interest rates.
Make your next move easier with an Aussie Broker.
