Inputting income and liabilities into the Macquarie Serviceability Calculator

We’ll consider 100% of gross income for applicants who are either full-time, part-time, PAYG contractors or casual employees.

To calculate the base income for all types of PAYG, use the gross income or earnings from a recent payslip and multiply the frequency of pay to annualise the gross income. For example, if paid:

• monthly, multiply by 12
• fortnightly, multiply by 26
• weekly, multiply by 52.

For additional guidance see Using pre- and post- tax deductions to calculate gross income.

Casual employees

We require at least 6 months of year to date income on the payslip to be able to annualise the income over 52 weeks. If the applicant doesn’t have 6 months year to date, we’ll use the lower of:

• annualised income from their most recent payslip (over 52 weeks), or
• their income statement from the previous financial year.

Typically, this overtime, bonus and commission income will be shaded to 80%, except for essential services’ overtime income where we’ll consider 100%. Always input the full amount as the calculator will automatically apply the shading. For example, if you enter $10,000, only $8,000 will be considered for servicing.

This type of income needs to be ongoing and a condition of the applicant’s employment. Watch our video for more information on how to calculate and verify these figures and input into the Macquarie Serviceability Calculator.

This field combines any foreign income earned and investment income (other than rental property income).

Foreign income needs to be input in Australian Dollar (AUD) terms and will be automatically shaded to 80% within the calculator. There are additional conditions for foreign income that you should be aware of before using in servicing.

Also include non-property related investment income (e.g. shares), which we’ll consider based on the portion of ownership by the applicant (e.g. 50%) and typically shade it to 80%. This is automatically applied in the calculator.

Other income may include income received from a second job or income not captured by other fields.

Non-taxable income typically includes superannuation pensions, child support, family allowance, disability benefits and income protection payments. If the income can be adequately verified, we’ll consider 100%.

Also, if any applicant is a health, charity or social worker and receives non-taxed income, this can be included. We’ll require a letter from their employer explaining the arrangement and payslips to verify.

To input self-employed income, select Click here for self employed worksheet to open a new section for entering this type of income. This should always be used for company/trust income.

Also note, if the applicant is paid a salary from the entity, this isn’t considered PAYG income and should be captured in the worksheet.

For a detailed guide, including tips to help you with Submitting self-employed applications.

Where the applicant(s) own several existing investment properties, add up all income, apply respective shading and add into the ‘Other property’ field (apportioned to relevant applicants).

Rental income received via a trust can be included, only where the trust is also a borrower on the home loan application. To include in the calculator,

• Under ‘Annual rental income received’ enter the trust/company’s rental income in a separate applicant column to the borrowers/guarantors. This will ensure the tax brackets aren’t impacted for the individual applicants.

For example, if there are two applicants on the application, they would be Applicant 1 and Applicant 2. Where income rental received via a Trust/Company, this should be input in Applicant 3’s rental income.

You’ll need to also enter the respective rental expenses for the trust/company-held property under ‘Annual investment property expenses’.