Bank wants PAYG Summary but my employer gives an ATO Income Statement

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Angel S
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Joined: Wed Aug 21, 2019 7:07 pm

Bank wants PAYG Summary but my employer gives an ATO Income Statement

Postby Angel S » Wed Aug 21, 2019 7:12 pm

Hi, I’m in a predicament. The problem is my bank wants a PAYG summary but I don’t get those from my employer anymore. Instead, they’re giving everyone an ATO Income Statement via the MyGov portal. What can I do?

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Otto Dargan
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Re: Bank wants PAYG Summary but my employer gives an ATO Income Statement

Postby Otto Dargan » Wed Aug 21, 2019 7:25 pm

Hello Angel. Welcome to the forums.

Banks are updating their assessment policies now to accept an ATO Income Statement as a form of income verification. The ATO Income Statement needs to be noted as being ‘Tax Ready’ to be acceptable. However, not every bank/lender has the system in place to accept these yet. The best course of action is to argue with the bank as they should be accepting it.

If not, speak with us and we can go with a bank that can from our panel of lenders.

Give us a call on 1300 889 743 or fill in our free assessment form to find out if you qualify for a home loan.
Otto Dargan
Mortgage Broker
P | 1300 889 743
Home Loan Experts

Angel S
Posts: 3
Joined: Wed Aug 21, 2019 7:07 pm

Re: Bank wants PAYG Summary but my employer gives an ATO Income Statement

Postby Angel S » Wed Aug 21, 2019 7:40 pm

Cool. I’m also making a voluntary salary sacrifice of $10,000 plus to my super, can this amount be added to my taxable income when assessing serviceability?

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Otto Dargan
Mortgage Specialist
Posts: 7654
Joined: Sat Sep 06, 2008 5:55 pm
Location: Sydney, Australia
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Re: Bank wants PAYG Summary but my employer gives an ATO Income Statement

Postby Otto Dargan » Wed Aug 21, 2019 7:54 pm

Hi Angel,

Salary sacrifice can be added to your gross taxable income where it has been identified as voluntary. Evidence of the salary sacrifice will be required. An employment letter detailing the salary sacrifice is usually accepted.

Common salary sacrifices include but are not limited to:
  • Non-compulsory/ voluntary superannuation contributions.
  • Meal entertainment
  • Novated lease of a motor vehicle
  • Other lease or loan repayments (e.g. home loans, personal loans, laptop etc.)
These arrangements can only be used as assessable income where it’s confirmed that it can be discontinued at any time.

Cheers,
Otto Dargan
Mortgage Broker
P | 1300 889 743
Home Loan Experts

Angel S
Posts: 3
Joined: Wed Aug 21, 2019 7:07 pm

Re: Bank wants PAYG Summary but my employer gives an ATO Income Statement

Postby Angel S » Wed Aug 21, 2019 8:08 pm

That’s great. Can I set up my new mortgage repayments so that they’re also salary sacrificed? Would that be my HR or the bank?

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Otto Dargan
Mortgage Specialist
Posts: 7654
Joined: Sat Sep 06, 2008 5:55 pm
Location: Sydney, Australia
Contact:

Re: Bank wants PAYG Summary but my employer gives an ATO Income Statement

Postby Otto Dargan » Wed Aug 21, 2019 8:28 pm

Hi Angel,

Yes, salary packaging your home loan repayments is one of the best ways to minimise your tax bill. You’ll need to talk to:
  • HR department: Ask your employer if they can allow you to salary package your mortgage. Clarify if there are any tax implications because of other expenses you’ve packaged.
  • Mortgage broker: We’ll set up your mortgage to a type that has the required features for salary packaging. We’ll also set up the repayment dates to match your salary payment dates in order to avoid any arrears.
Our specialist mortgage brokers know which lenders are offering the best interest rates.

Give us a call on 1300 889 743 or fill in our free assessment form to find out if you’re looking to salary package your mortgage.

Cheers,
Otto Dargan
Mortgage Broker
P | 1300 889 743
Home Loan Experts


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