Guide
Add-Backs Explained
Add-backs are expenses that lenders add back to your net profit when assessing borrowing capacity. Understanding them can significantly boost your borrowing power.
$120,000
Depreciation
$15,000Non-cash expense — most lenders add this back
One-off expenses
$8,000Unusual costs not expected to recur
Interest on investment loans
$12,000Some lenders add back investment-related interest
Superannuation contributions
$5,000Above-minimum super contributions
Motor vehicle (business use)
$4,000Portion of vehicle expenses beyond actual cost
Your Adjusted Income
Net Profit
$120,000
Total Add-Backs
+ $44,000
Adjusted Assessable Income
$164,000
36.7% income boost
Not all lenders accept all add-backs. As your CPA broker, we know exactly which lender accepts which add-back.
Common Add-Backs by Business Structure
Sole Trader
- Depreciation
- Home office expenses
- Motor vehicle (log book method)
- One-off repairs/maintenance
Company
- Director depreciation claims
- Retained earnings (some lenders)
- Super above minimum
- Non-recurring professional fees
Contractor
- Vehicle depreciation
- Equipment purchases
- Insurance premiums
- Travel between contracts