What your BAS turnover suggests
Alt-doc lenders use Business Activity Statements as a plausibility check: does the income your accountant declares sit sensibly against the turnover you have reported to the ATO? This shows the range that turnover implies at different margins, which is the conversation rather than a formula.
How alt-doc lending actually uses BAS
Under an alt-doc arrangement your income is generally declared by you and supported by your accountant, with BAS statements and business bank statements used as corroboration. The lender is asking whether the declared figure is credible against the turnover reported to the ATO. It is a sense check, not a calculation, and a declared income wildly out of step with turnover invites questions.
Why margins vary so much
A services business with low overheads may retain a high proportion of turnover. A business carrying stock, wages and premises may retain far less on much larger turnover. Neither is better; they are different shapes. That is precisely why no lender applies a single percentage across all industries, and why any calculator claiming to derive your income from turnover alone should be treated carefully.
When alt-doc is the right route
Where the business is genuinely strong but the paperwork lags: a recent structural change, a year not yet lodged, or financials that understate current trading. It is a legitimate product at transparent pricing, generally higher than full-doc lending because the lender holds less verification. Our low doc guide covers the trade-offs honestly.
The route back to mainstream
Alt-doc should usually be a stage rather than a destination. Once two years of clean financials exist, refinancing to full-doc pricing is the plan that should be discussed at the outset rather than discovered later. If nobody mentions the exit when arranging the entry, that is worth asking about.
Strong business, paperwork not caught up?
Charles can tell you whether alt-doc is genuinely needed, or whether a full-doc lender would take the file as it stands.
BAS and alt-doc questions
Can I get a home loan using BAS statements?
Under alt-doc arrangements at various lenders, yes. Your income is generally declared and supported by an accountant, with BAS and business bank statements used as corroboration. Requirements differ by lender, including how many quarters they want and what else must accompany them.
Does turnover determine my income?
No, and any tool suggesting a fixed conversion is misleading. Margins vary enormously by industry and by business. Lenders use BAS to check that a declared income is plausible against reported turnover, not to calculate income from it. This calculator shows a range for that conversation rather than an answer.
Is alt-doc lending more expensive?
Generally yes, because the lender holds less verification and prices for that. How much more varies, and it should be compared honestly against waiting for full financials. Where the business is genuinely strong, the premium buys you the ability to act now rather than in eighteen months.
How many BAS statements do lenders want?
Commonly the four most recent quarters, sometimes more, and often alongside business bank statements covering a similar period. The specific requirement differs by lender and by product, so it is worth confirming before assembling paperwork.
Should I use alt-doc or wait for financials?
It depends on what waiting costs you and what alt-doc costs you, and those are both numbers rather than opinions. If your next financial year will be lodged in a few months and the market is not moving against you, waiting may be cheaper. If the opportunity is now, alt-doc exists for exactly that.
Related tools and guides
Estimates only, not credit or financial advice. This tool uses general assumptions and cannot see your credit file, verify your income or apply any particular lender's policy. Your position is confirmed in a full assessment.
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