Short YouTube monologue by Aaron (Diagnostics and Finance) explaining when income from side hustles can be counted toward Australian home loan applications. Covers typical side-hustles (rideshare, selling products), the distinction between hobby vs. business, documentation banks require (ABN, GST registration, tax returns, notice of assessment), a two-year registration guideline, and practical effects on borrowing power.
Who has a side hustle? Who has something on the side of their full time job, part time job that they like to make some money out of. It might be a multi level marketing product, it could be a business online, offline, you might be making something to sell. Who has a side hustle? Hey, it's Aaron from Diagnostics and Finance and I get a question all the time. Can they use their side hustle to help fund their home loan? And one of the things that I find is more common for side hustles is that it's either a hobby or it's a self employed business. For example, Uber drivers, they might have a full time job but they Uber on the weekend and after work you might sell some nutritional products through to jewelry, beauty accessories, things like that. But most of the time I'm finding that they have an ABN or a hobby that they put that money through. Now that's not uncommon and it's a great starting place to do that. But can we use it for your Homeland application? The answer is it's mixed. One is you can as long as you've had your ABN GST registered, had it for more than two years. The other one is that it's a hobby and we probably can't use it if you don't run it through a business structure and you haven't been declaring it by the third party umpire that the banks look for, which is the Australian tax office and you have a notice of assessment and a tax return to fully declare the income coming in, the expenses to get that income and what the profit is, we probably can't use that income. When it does have all those documents in place, we can put it in there. An extra 2 grand, 9 grand, 10. 10 grand, 50 grand as business profit can do a wonder on the calculators right now in the current today's market with the calculators tightening up, we need to put more income on there. Five years ago we could earn less and get more. Today you need to earn more to get the same amount you could back in the past. So can you use the side hustle? The answer is yes and it's no. So check out what documents you have, have a chat to your accountant. Is it in the right structure and can we use your side hustle in your next home loan application? Hey, it's Aaron. Bye for now.
