Your Taxable Income vs What the Bank Counts

You're at the kitchen table with two payslips and a calculator. One of you says, "We earn about $170k together, so Help to Buy's out." The other one isn't so sure.

You might both be right. It depends which number you're looking at.

Here's the thing most couples don't realise. There are two different income figures in play when you buy, and they come from different places.

Number one is your taxable income

Help to Buy has an income cap. To be eligible, your annual taxable income has to be at or below $103,000 for a single applicant, or $165,000 for joint applicants and single parents.

The scheme doesn't take that from your payslip. According to the official Help to Buy page, it's the figure on your ATO Notice of Assessment for the previous financial year. Right now that's FY 2026.

Taxable income is what's left after deductions. So it's often lower than the salary in your contract.

What can make taxable income lower than your pay

A few common things sit between your package and the number on your Notice of Assessment.

• Work deductions. Claimed work expenses come off your assessable income.
• Salary sacrifice into super. Pay you sacrifice into super before tax isn't counted as assessable income.
• Timing. A pay rise or new job this year won't show on last year's assessment.

That last one cuts both ways. This year's pay rise won't count for the cap yet, but it will show up in later reviews.

Help to Buy reviews ask for updated taxable income details, to see whether you can buy back more of the home. The Customer Guide explains how.

Number two is what the bank counts

A lender doesn't work off your taxable income. It checks whether you can afford the repayments, using your income, expenses and debts.

And lenders treat different kinds of income differently.

• Base salary. Usually counted in full.
• Overtime, bonuses and commission. Many lenders count only part of it, or want to see a track record first.
• Casual or self employed income. Often needs a longer history, and self employed income is usually read from tax returns.

Then the bank tests the loan at a higher rate than you'll actually pay. APRA expects lenders to add a buffer of at least 3 percentage points.

That buffer matters this week. The RBA lifted the cash rate to 4.85% on Cup Day, its fifth rise this year. As lenders pass that on, the rate they test you at rises too.

If you're not sure which number you're working with, that's exactly what a first chat is for. You can book a chat and we'll go through both figures with you.

Why the two numbers can point different ways

Picture a couple on $172k in combined salary. One salary sacrifices into super and claims some work expenses. Their Notice of Assessment might come in under $165k.

On paper, Help to Buy could be open to them. But that doesn't change what the bank will lend. The lender still looks at their real pay, their spending and that 3% buffer.

Flip it around. A couple whose overtime pushed last year's taxable income over the cap could be outside Help to Buy, even if a lender only counts half of that overtime.

So "we earn $170k" doesn't settle anything on its own. You need to know which $170k.

Where the 5% Deposit Scheme fits

The 5% Deposit Scheme works differently. It has no income cap and no limit on places, so your taxable income doesn't decide whether you can use it.

What it doesn't do is shrink the loan. You still borrow around 95% of the price, so what the bank counts sets your ceiling. Price caps apply by location.

Help to Buy, by contrast, puts a government share of up to 30% on an existing home or 40% on a new one, so you borrow less. That share is repaid later, based on the home's value at the time.

Neither door is better for everyone. It comes down to your numbers, the home you want and how you feel about sharing the gain.

Get both numbers on the table

Before you rule a scheme in or out, find your last Notice of Assessment in myGov, then pull up your recent payslips. That puts the scheme's number and the bank's starting point side by side.

We've helped over 100 first home buyers into the market, and we're rated 10/10 on Reviewr by over 100 customers. When you're ready, book a chat and we'll walk through how both numbers work for you two.

Let's get you into a home.

Figures verified 4 November 2026 against firsthomebuyers.gov.au (Help to Buy eligibility and FY 2026 income thresholds, 5% Deposit Scheme), the Reserve Bank of Australia's 3 November 2026 decision, and APRA's serviceability buffer guidance.