TL;DR
You’re a startup founder. You’ve raised a seed round. You’re paying yourself a salary from the company. But when you walk into a bank for a home loan, the assessor looks at your application like you’re unemployed. Why? Because founders don’t have PAYG summaries from an employer — they’re the employer. This guide walks through exactly how to build the “income proof” stack that lenders want: STP-registered payroll, compliant payslips, ASIC director records, and clean company financials. With Sleek AU Payroll, the entire stack can be set up in under a week.
1. The Founder’s Income Problem
Lenders assess income using a simple hierarchy:
- ⭐⭐⭐⭐⭐: 2 years’ PAYG summaries + recent payslips · Salaried employee
- ⭐⭐⭐⭐: 2 years’ tax returns (self-employed) · Sole trader with accountant
- ⭐⭐⭐: Current year BAS + accountant letter · Contractor
- ⭐⭐: Director-paid salary (STP + payslips) · Startup founder (you)
- ⭐: Future revenue projections · Early stage founder
Founders fall into the ⭐⭐ tier — not because the income isn’t real, but because lenders need a standardised, verifiable format. Here’s what you need to generate.
2. The Three-Part Income Proof Stack
Part A: Single Touch Payroll (STP) — The Non-Negotiable
STP is the ATO’s real-time payroll reporting system. Every time you pay yourself as a director, your payroll software reports:
- Gross salary
- PAYG withholding
- Superannuation
To the ATO. Lenders can verify this through:
- Your myGov account → Income Statement (STP-reported)
- Your accountant/tax agent’s portal
How to set up STP:
- Register your company for STP through your payroll software
- Sleek AU Payroll (from AUD 100/month) handles STP registration + ongoing reporting automatically
- Each pay run is lodged with the ATO in real time
🚩 Common founder mistake: Paying yourself via director loan or irregular bank transfers. This creates NO STP record. To a lender, it looks like you had zero income.
Part B: Compliant Payslips — What Lenders Actually Check
A compliant payslip must show:
- Employer name & ABN: Must match ASIC records
- Employee name: Must be you
- Pay period: Lender checks consistency (same amount each period = strong)
- Gross pay: Monthly or fortnightly — consistency is key
- PAYG tax withheld: Proves you’re paying tax on this income
- Superannuation: Shows employer SG contributions
- Year-to-date totals: Quick view of cumulative income
How long of a history do you need?
- Major banks: ideally 6-12 months of consistent payslips
- Specialist/non-bank lenders: 3-6 months may be sufficient (with rate premium)
- The longer and more consistent, the better
🚩 Second common mistake: Generating 12 months of backdated payslips right before applying. Banks see bank statements too — if the salary deposits don’t match the payslip dates, the application goes to the fraud team.
Part C: Company Financials — The Puzzle Piece That Ties It All Together
Lenders will also look at your company’s financial position:
- ASIC company extract: You’re a director, company is active
- Company bank statements (6-12 months): Salary deposits actually went out
- Company tax return (previous FY): The company had revenue to support your salary
- BAS statements (if GST-registered): Ongoing trading activity
- Profit & Loss (management accounts): Current year performance
3. Founder Salary Sweet Spot: How Much Should You Pay Yourself?
Lenders don’t want to see you draining the company. They look for a sustainable salary:
- Pre-revenue / Seed: AUD 60,000-80,000 · Covers living, leaves runway for company
- Early revenue (AUD 200K-500K ARR): AUD 80,000-120,000 · Reasonable for a working founder
- Growth (AUD 500K-2M ARR): AUD 120,000-180,000 · Market rate for a COO/CEO of a startup
- Scale (AUD 2M+ ARR): AUD 180,000+ · Full market rate
Serviceability calculation: Most lenders use 6-7× gross annual income as the total borrowing capacity. Your startup equity doesn’t count (lenders won’t value unlisted shares).
- AUD 80,000 salary → ~AUD 480,000-560,000 borrowing capacity (single applicant)
- AUD 120,000 salary → ~AUD 720,000-840,000
- AUD 180,000 salary → ~AUD 1.08M-1.26M
💡 Pro tip: If you have a co-founder spouse/partner with a salaried job, adding them as a co-borrower dramatically increases capacity.
4. Step-by-Step: Getting Lender-Ready in 4 Weeks
Week 1: Set Up the Infrastructure
- ASIC check: Make sure your company is active and you’re listed as a director. Sleek AU can register your company if you don’t have one yet (AUD 180 ASIC fee + Sleek service).
- STP registration: Set up STP-enabled payroll. Sleek AU Payroll handles it — from AUD 100/month.
- First compliant pay run: Pay yourself a consistent salary. Generate and save the payslip.
Week 2–4: Build the Paper Trail
- Continue regular pay runs (same amount, same date)
- Ensure salary amounts match bank transfers
- Gather ASIC extract, company bank statements (6 months back), previous FY tax return
Week 5+: Apply
- Engage a mortgage broker experienced with founders
- Provide the complete income proof stack
- Expect questions about company financials (be ready with your P&L and runway projection)
5. Alternative: Low-Doc Loans If You’re Not Ready
If your company is too early (less than 6 months of payroll history), low-doc loans are an option:
- Income proof: 6-12 months payslips + STP · Accountant letter + BAS + bank statements
- LVR cap: 80-95% · 60-80%
- Rate premium: N/A · +0.5% to +1.5%
- Availability: All lenders · Specialist only (Pepper, Liberty, Resimac)
Low-doc is a bridge, not a destination. Use it to buy now, refinance to full-doc once you have 12+ months of consistent payroll.
6. Checklist: Is Your Founder Income Lender-Ready?
- Company registered and active with ASIC
- STP-enabled payroll set up (Sleek AU Payroll)
- 6+ months of consistent payslips (same amount, regular intervals)
- Salary deposits visible in company bank statements
- PAYG withholding lodged with ATO via STP
- Superannuation contributions being made
- ASIC director extract matching payslip employer name
- Company tax return for most recent FY (if available)
- P&L statement showing company has revenue to support your salary
Disclaimer: This article is general information only and does not constitute financial, tax, or credit advice. Lending criteria vary between lenders and are subject to change. Consult a licensed mortgage broker and tax agent before applying. Arrivau Pty Ltd (ABN 81 643 901 599) acts as an ASIC Credit Representative (CRN 530978) under its licensee.
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