Timing a refinance around your BAS and tax returns

Being self-employed doesn't make refinancing harder because lenders distrust business owners — it's because your income is assessed differently. Instead of a payslip, lenders read your tax returns, financials and BAS, and the figure they land on depends heavily on when you apply and how your income is presented.

How lenders actually assess your income

Most lenders start with your lodged tax returns and financial statements — usually the latest one or two financial years — take your taxable income, and then apply add-backs to reach an assessable figure. That assessable number is what your borrowing capacity is built on.

Some lenders average two years; others use the most recent year, or the lower of the two. This is why the same business can be assessed quite differently by different lenders — and why lender choice is a strategic decision, not an afterthought.

Why timing changes everything

Your assessable income is only as current as your most recent lodgement. That creates clear timing windows:

• If your latest year is your strongest, lodge it promptly, then refinance — so lenders assess on your best, freshest figures.
• If your latest year is weaker, the timing and lender-selection strategy changes — some lenders weight the most recent year heavily, others less so.
• Mid-cycle applications can force reliance on older returns, understating a growing business.

Add-backs: the hidden lever

Add-backs are legitimate deductions your accounts show that a lender will add back to your taxable income — because they aren't true ongoing cash costs. Common examples include:

• depreciation,
• one-off or non-recurring expenses,
• additional (voluntary) superannuation contributions,
• interest on debts being refinanced or paid out, and
• certain non-cash or owner-related expenses.

Identifying and evidencing every legitimate add-back can significantly lift your assessable income — and this is precisely where accounting expertise pays for itself.

Get your documentation ready

A smooth self-employed refinance usually needs: one to two years of personal and business tax returns and financials, recent BAS statements, business and personal bank statements, details of existing debts, and identification. Having these organised before you apply avoids delays and repeated lender requests.

Why a CPA broker matters here

This is the branch of refinancing where the right adviser changes the result most. A broker who is also a CPA and Registered Tax Agent can read your financials the way a lender's credit team will, capture every legitimate add-back, time your application around your lodgements, and match you to the lender whose policy best fits how your income is structured — turning a marginal assessment into a strong one.