Self Employed Car Loans. How Lenders Read ABN Income
Run your own business? Lenders read your income from tax returns, notices of assessment, BAS or bank statements, depending on the lender. We compare eligible options from our panel of 50+ lenders and explain how they differ.
Australian Credit Licence 509582. Lender fees may apply. Lender criteria apply.
Can you get a car loan if you are self employed?
Yes, you can apply for a car loan as a self employed sole trader, partner or company director. Many lenders assess your last two tax returns and notices of assessment. Some lenders on our panel may accept BAS, business bank statements or an accountant's letter instead. Approval, rate and loan amount depend on the lender's assessment.
- ABN Lookup shows when your ABN became active and your GST status, so lenders can see how long you have traded
- If you are registered for GST you lodge a BAS, which some lenders read as recent income evidence
- No two years of returns yet? Low doc options may use other evidence
- We compare a panel of 50+ lenders, not the whole market. We may receive commission.
Reviewed by Simple Loans Editorial Team · Last reviewed
The Simple Loans Editorial Team researches and reviews every car finance guide published on simpleloans.au. Simple Loans holds Australian Credit Licence 509582 and is a member of AFCA.
Why choose Simple Loans.
Full doc and low doc compared
We look at lenders that read tax returns and lenders that may read BAS or bank statements, and explain the trade offs.
Sole traders, partners and directors
Each business structure produces different paperwork. We tell you which documents matter for yours.
A panel of 50+ lenders
We compare eligible options from a panel of 50+ lenders. We do not compare every lender or product in the market.
No upfront assessment fee
We do not charge an upfront assessment fee. Lender fees may apply, and we may receive commission from a lender if your loan settles.
A soft start
Submitting this enquiry does not itself create a hard credit enquiry. If you choose to proceed with a lender, a credit check may be required. We will explain that step before a formal application is submitted.
Decisions can be available the same day
Timing depends on the lender, how complete your application is, and when supporting documents arrive. A conditional decision is not an approval, and an approval is not a settlement.
Which route fits how you work
Self employed covers a lot of ground. Find the line that sounds like you.
- Sole trader or partner, trading two years or more, returns lodged. Lenders usually look at your tax returns, notices of assessment and recent bank statements. Start here.
- Self employed, but your returns are not lodged yet or do not show what you earn now. Depending on the lender, BAS, business bank statements or an accountant's letter may be read instead. Start with low doc car loans.
- ABN registered less than two years ago. Lenders look at how long you have traded and any income evidence, and some specialist lenders on our panel may consider a newer ABN. Start with car loans with a newer ABN.
- Working on a contract, such as IT, labour hire or a fixed term role, and paid per contract. Lenders usually want a current contract, invoices or bank statements. Start with car loans for contractors.
- Tradie buying a ute or work vehicle. Lenders look at how you earn, plus the vehicle and its business use. Start with car loans for tradies.
- Company director paid by your own company. Lenders usually look at your personal returns and, often, the company's financials. See company directors below.
- Vehicle used mainly for the business. A business finance structure may suit. Start with chattel mortgage.
What lenders usually ask for, by business structure
Lender requirements vary, and each lender sets its own list. These are the documents that come up most often, grouped by how your business is set up.
Sole traders
As a sole trader you lodge with your own tax file number, so your business income sits in your personal return. Lenders usually ask for your last two tax returns and the matching notices of assessment, your ABN, recent BAS if you are registered for GST, and recent business and personal bank statements.
Partnerships
A partnership lodges its own return, and each partner pays tax on their share. So a lender will usually want the partnership return and your personal return, to see both the business result and your share of it. Some lenders may also ask for the partnership agreement.
Company directors
A company is a separate legal entity, and the money it earns belongs to the company. That is why lenders usually start with what the company pays you, shown in your personal return, and may also ask for the company's financial statements and tax return. On business finance, some lenders may ask a director for a personal guarantee.
Trusts
If you trade through a trust, lenders may ask for the trust's return and how its income is distributed to you. Trust arrangements vary a lot, so ask your accountant which documents best show your income before you apply.
Where to get each document
- Notice of assessment: the ATO's statement of how your tax was worked out. Find it in your myGov Inbox if myGov is linked to the ATO. For older years, go to myGov, then ATO, then My profile, Communication and History.
- ABN details: your ABN is the 11 digit number that identifies your business. ABN Lookup shows when your ABN became active and your GST status. It is free and public, with no login needed.
- BAS: lodged through ATO online services, your tax agent or a BAS agent, so copies sit with whichever you used.
- Tax returns: from your tax agent or myGov. If you lodge your own return, it is due by 31 October. A tax agent will tell you their due date.
- Bank statements: from your bank's app or internet banking, for both business and personal accounts.
How lenders read self employed income
Lenders generally look at what your business earns after expenses, not its turnover. Many lenders use the taxable income on your returns, so a year with big deductions can make your income look lower on paper.
Some lenders may add back certain expenses that never left your pocket as cash, such as depreciation. Policies differ, and not every lender does it, which is one reason the same file can read differently across a panel.
A recent return usually carries more weight than an older one. If this year looks very different from last year, recent BAS or bank statements may help explain the change, depending on the lender.
Why taxable income matters
Illustration only. These are made up figures to show the idea, not lender policy.
Sam and Alex are sole traders who each turn over $180,000 a year. Sam's return shows $95,000 of taxable income. Alex bought new equipment, claimed large deductions and shows $48,000. They run similar businesses, but a lender reading taxable income sees two very different borrowers.
If a car purchase is coming up, talk to your accountant about timing before you apply, and tell us about any unusual deductions up front. We can then look for lenders on our panel whose approach fits your figures, and explain the trade offs.
No BAS? Check your GST registration first
Many lists of self employed documents assume you have a BAS. Not everyone does.
You must register for GST once your GST turnover reaches $75,000. If you are registered for GST, you lodge a BAS. Most small businesses report GST quarterly. Businesses voluntarily registered with GST turnover under $75,000 may report annually.
So a sole trader under the threshold who has not registered for GST may have no BAS at all. That is normal. Depending on the lender, your tax returns, bank statements or an accountant's letter carry the file instead. You can confirm your own GST status on ABN Lookup. If your returns are not lodged yet either, start with low doc car loans.
Consumer car loan or business finance?
A consumer car loan is common when the car is mostly for private use. A chattel mortgage is a business finance structure often used when the vehicle is used mainly for the business.
Tax is a question for your accountant
You can only claim the business part of a car's use, and you need records to show it. If a car costs more than the ATO car limit, GST credits on a car are generally capped at one eleventh of that limit, and the limit changes each income year. How any of this applies to you depends on your business, so ask your accountant or a registered tax agent which structure suits your tax position before you choose a loan.
Balloons and comparison rates
Some loans offer a balloon payment. A balloon lowers your regular repayments, but the total cost is generally higher, and a lump sum is owing at the end.
When you compare offers, use the comparison rate. The comparison rate includes the interest rate and fees. Compare the same loan amount and term.
Self employed car finance in Sydney, Melbourne, Brisbane, Adelaide and Perth
Lender policy for self employed borrowers generally does not change by city. The same documents matter whether you trade in Adelaide or Sydney, and you deal with national lender policy, not a separate city product.
We arrange finance from our Brisbane office at Level 9, 410 Queen Street. There are no city offices. Wherever you live, budget for stamp duty, rego and insurance too.
For local detail, see:
Before you apply
- Check your ABN details on ABN Lookup match your application.
- Have your latest notices of assessment ready.
- List every repayment you make, business and personal.
- Get your credit report. You can get your credit report free every 3 months.
- Compare first, then apply once. Moneysmart notes that each credit application is noted on your credit report, and too many in a short time can lower your score.
We compare eligible options from a panel of 50+ lenders. We do not compare every lender or product in the market, and the lenders considered depend on your circumstances and eligibility. Simple Loans may receive commission from a lender if your loan settles; see our Credit Guide.
DPC Broker Pty Ltd trading as Simple Loans (ABN 13 613 195 387) is the holder of Australian Credit Licence No. 509582. AFCA member 67083. This page is general information and does not take your personal circumstances into account.
How it works.
Tell us how you trade
Your business structure, how long you have held your ABN, what you have lodged and the vehicle. The form takes about 2 minutes.
We compare panel lenders
Full doc and low doc options from our panel of 50+ lenders, with the trade offs explained.
You choose, then apply once
We explain any credit check before a formal application goes to the lender you pick.
Frequently asked questions.
Can I get a car loan if I am self employed?
Yes, you can apply as a sole trader, partner or company director. Depending on the lender, your income may be read from tax returns and notices of assessment, BAS or bank statements. Approval, rate and loan amount depend on the lender's assessment.
How long do I need to have had my ABN?
Many lenders ask for about two years of trading history, but each lender sets its own minimum, and some specialist lenders on our panel may consider a newer ABN. Lenders can see when your ABN became active on ABN Lookup. If yours is under two years old, our page on car loans with a newer ABN covers the options.
Do I need two years of tax returns?
Full doc lenders usually want them. If your returns are not lodged yet, or do not show what you earn now, low doc options may use BAS, bank statements or an accountant's letter instead, depending on the lender. Low doc pricing and conditions can differ from full doc loans. Our low doc car loans page explains how it works.
What documents does a sole trader need for a car loan?
Usually your last two tax returns and notices of assessment, your ABN, recent BAS if you are registered for GST, recent business and personal bank statements, ID and the details of the vehicle. Requirements vary by lender, so we confirm the list for the lenders that fit your situation.
Is it harder to get a car loan when you are self employed, and are rates higher?
Not necessarily harder, but the evidence is different. Your rate depends on your income evidence, credit history, the vehicle and the lender's assessment. Low doc loans may cost more than full doc loans. We compare eligible options from our panel and explain the total cost, fees included.
Can I get self employed car finance in Adelaide, Sydney or Brisbane?
Yes, you can apply wherever you live in Australia. We compare the same panel of lenders nationally from our Brisbane office, and there is no office in each city. Our city pages, such as car loans in Adelaide, add local detail.
Can I get a car loan if I am self employed with bad credit?
Different lenders use different credit criteria. We can check whether options on our panel may be worth discussing, but approval, rate and loan amount depend on the lender's assessment and responsible lending requirements. Our bad credit car loans page explains more.
Does checking my options affect my credit score?
Submitting this enquiry does not itself create a hard credit enquiry. If you choose to proceed with a lender, a credit check may be required. We will explain that step before a formal application is submitted. Moneysmart notes that each credit application is noted on your credit report, and too many in a short time can lower your score.
Ready to get started.
No upfront assessment fee. Lender fees may apply. We compare eligible options from a panel of 50+ lenders.
Simple Loans is a finance comparison tool. Holder of Australian Credit Licence No. 509582. All applications are subject to lender approval. Terms, conditions, fees and charges apply. This information is general in nature.