Article
ABN, GST and Trading History Rules For Self‑Employed Low‑Doc Loans
Self‑employed and thinking low‑doc? Here’s the minimum ABN age, GST status and trading history lenders usually want to see, plus what to do if you don’t meet the rules yet.
Key Takeaway
Self‑employed Australians usually need 12–24 months of ABN history, GST registration above the $75k turnover threshold, and stable trading over the last 6–12 months to qualify for a low‑doc home loan. Lenders apply an APRA‑style 3% serviceability buffer and closely check BAS, bank statements, and ATO conduct. Where trading history is thin, borrowers may face tighter LVR caps or need to delay the application and first clean up cashflow and tax records. Planning 3–6 months ahead is often the safest move.
Self‑employed low‑doc lenders usually want three things: (1) your ABN running for at least 12–24 months, (2) GST registration if your turnover is or should be above $75k, and (3) clear evidence the business has traded steadily for the last 6–12 months.
If you’re light on any of these, you may still get a loan, but expect fewer lenders, lower LVRs and higher pricing.
Quick thresholds: ABN, GST and trading history at a glance
Here are the rough minimums most mainstream and specialist low‑doc lenders look for.
| Requirement | Typical minimum for sharper low‑doc | Looser / specialist options* |
|---|---|---|
| ABN age | 24 months | 12 months (sometimes 6) |
| Trading in current structure | 12–24 months | 6–12 months |
| GST registration | Required if turnover ≥ $75k | Sometimes waived if < $75k |
| Evidence of income | 12–24 months BAS or 6–12 months bank statements | 6 months bank statements, accountant letter |
| Max LVR | ~70–80% | ~60–70% |
*Indicative only. Each lender has its own policy and risk appetite.
A practical safety rule for self‑employed borrowers is to keep total home and investment repayments under 30–35% of after‑tax income when stress‑tested at rates 3% higher than today, even if the bank will lend more (see /insights/maximising-borrowing-power-self-employed-low-doc-vs-full-doc).
1. ABN age: how long is “enough” for a low‑doc loan?
Most lenders care less about the ABN itself and more about continuous trading under that ABN or company.
Common ABN age rules
-
24 months ABN, 24 months trading
This is the sweet spot for many low‑doc and alt‑doc policies. -
12–24 months ABN, strong prior industry history
Some lenders will accept a newer ABN if you’ve worked in the same line of work PAYG for years. -
Less than 12 months ABN
Very few options, usually:- lower LVR (often max 60–70%)
- higher rates and fees
- tighter scrutiny of bank statements.
Example:
You’ve run a café under your ABN for 18 months. Turnover is stable, GST‑registered, BAS lodged on time. A few mainstream non‑banks may consider 70–80% LVR using BAS or bank‑statement income. If the ABN is only 7 months old, you’re likely capped near 60–70% and paying a steeper rate.
If your ABN has changed due to moving from sole trader to company, lenders will often treat it as continuous if ownership, business activity and location are clearly similar.
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Frequently asked questions
Can I get a low-doc home loan with less than 12 months ABN?▾
Do I need to be GST-registered for a self-employed low-doc loan?▾
How much trading history do lenders want for a low-doc mortgage?▾
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