Key takeaways:
Tax returns help lenders assess income and serviceability. Lenders may review tax returns, Notices of Assessment, payslips, bank statements and other documents to verify income, debts and commitments.
PAYG borrowers may need an Income Statement via myGov. This can help verify annual income, especially where payslips do not show variable income or recent employment changes.
Self-employed borrowers usually need more income evidence. Lenders may ask for personal and business tax returns, financial statements, Notices of Assessment and trust documents, where applicable.
Proposed negative gearing changes may affect loan assessments for investors. The measure is not yet law, but it may change how some lenders assess serviceability where rental losses are involved.
Recent tax returns can help make the application smoother. Lenders generally prefer tax returns no more than 18 months old. However, some may accept older returns with current BAS or profit-and-loss reports.
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.
Income Statement via myGov
Your Income Statement is one document lenders may use to help verify your annual PAYG income.
For many employees, it has replaced the old payment summary or Group Certificate. Your Income Statement is available through ATO online services via myGov or the ATO app if your employer reports through Single Touch Payroll (STP).
In that case, your employer generally does not need to provide a separate paper or digital payment summary for income reported through STP.
This can matter for a home loan application because payslips may not always show the full income picture. A lender may ask for your Income Statement to check annual earnings, particularly if your income varies or your employment has recently changed.
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.
Speak with an Aussie Broker about how your rental income, taxable income and investment property plans may be assessed.
You might also be interested in: Understanding taxes when buying and selling a home in Australia
What the 2026 Budget negative gearing changes could mean for your borrowing capacity
The 2026 Federal Budget included proposed changes to negative gearing and capital gains tax that may affect some property investors from 1 July 2027. The proposed measure is not yet law. However, it may still be relevant if you are applying for an investment loan and your borrowing position depends on rental income, tax deductions or rental losses.
What is proposed to change?
Under the proposal, negative gearing for residential investment properties would be limited to new builds from 1 July 2027.
For established residential investment properties purchased from 7:30 PM AEST on 12 May 2026, rental losses would generally only be deductible against other residential property income, including capital gains. This means affected rental losses may no longer be deductible against wages, salary or other non-property income.
Excess losses may also be carried forward to offset residential property income in future years.
Existing arrangements are expected to remain unchanged for properties held before Budget night, and investors who buy new builds would still be able to deduct losses from other income.
Why this could affect investment loan serviceability
The proposed negative gearing changes do not change the tax return documents you may need for a home loan application.
However, they may affect how some lenders assess investment loan serviceability. If the tax benefit attached to rental losses is reduced or treated differently for affected established properties, a lender may take a closer look at whether the property and borrower can meet ongoing loan commitments.
For borrowers, serviceability is not only about income.
Lenders also assess expenses, liabilities, existing debts, proposed repayments, rental income and, where relevant, how investment property losses are treated.
What this means for investor borrowers
If you are self-employed, receive rental income or plan to buy an investment property, a lender may ask more detailed questions about:
When the investment property was purchased
Whether the property is a new build or an established dwelling
Whether the expected rental income can cover the loan costs
Whether your borrowing position relies on rental loss deductions
How your taxable income is shown across your tax returns and Notices of Assessment
Some lenders may review their approach to new investor applications before the proposed rules start, particularly where an application involves an established investment property purchased after 12 May 2026. Lender policies vary, so it is worth getting guidance before you apply.
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 typically required |
|---|---|
FY 2024–25 (if lodged) or FY 2023–24 | |
FY 2024–25 or FY 2023–24 | |
FY 2025–26 (if lodged) or FY 2024–25 |
Lenders generally want returns no older than 18 months at the time of application. If the most recent year hasn't been lodged yet, some lenders will accept the prior year supported by current BAS statements or a profit & loss report.
Pre-fill data is typically available from 1 July, with most information available by late July.
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.
