Bank cut-off for financials

Hi brokers!

If I get my 15/16 financials done shortly and apply for a loan, will I have to show any BAS statements for this financial year? Is there specific cut-off date?

Currently with ANZ.

 

Until the 1st of January, lenders don't need the 2015-2016 tax return. They'll be satisfied with the returns up to 2014-2015.

For some lenders the cut off is even later. Many don't need the most recent year until April and one or two are okay until the end of financial year.

 

If your figures are similar or more than the previous year you will be sweet until at least 1 Jan. No BAS required but if your business account is with ANZ the assesor may check the account.

I think ANZ go to March and AMP will go as late as May.

 

No requirement to show BAS for a full doc loan with ANZ. As above, the general cut off with most lenders is the end of the calendar year, with a few outliers going to March, May etc.

It's always a fun time of year balancing self employed clients needs of lending vs pushing their tax liability out as much as possible.

 

Why would this matter?
I trust you are referring to income tax. 90 % of business needs to lodge BAS quarterly anyway. So why wouldn't you give this to the bank?
Sure your tax return doesn't need to be lodged until March (or so) but your accountant should still be preparing at least draft accounts prior to end of financial year for tax planning, and these can be provided.

Or am I assuming most businesses aren't all that organized?

Blacky

 

Self employed it's always a battle of getting them to show enough NET income for what they're wanting to do - they didn't have to do this in previous markets (low/no doc)
So this time of year it's often s/e clients wanting to borrow more, but need 2016 returns completed to show the extra income
@Blacky @Corey Batt

 

I find about half of them already have their drafts prepared but will not lodge until ~March-May the next year so they have time before they will need to pay any outstanding company liabilities etc.

ATO obviously moves a lot of businesses onto installment payments, but if you're looking at a rapidly growing business there's often a hefty tax bill come lodgement. (last one I recently worked with has a tax liability looming of over 70k which they're happy to keep in their accounts until next year)

From a lending perspective, some lenders will be kind and may work off a draft, but for the most part they will want to see them lodged so they can put a strong weighting on the figures for most full doc resi deals.