Casual Employee Income
Income earned by an employee engaged on a casual basis, typically with no guaranteed hours and a casual loading on the hourly rate.
In detail
Casual employees do not have guaranteed hours or paid leave. Lenders treat casual income cautiously and usually require a minimum period of continuous casual employment, often six to twelve months with the same employer. Some lenders accept three months of casual employment if the borrower has a history in the same industry.
Annualising casual income is a nuanced exercise. A common approach is to calculate average weekly earnings from the most recent pay cycles and multiply by 48 weeks rather than 52 to account for unpaid leave and quiet periods. Some lenders use 46 weeks, others 52. YTD figures are the best check against any annualisation.
Why it matters for brokers
Casual workers represent a meaningful share of the Australian workforce. Brokers who understand the annualisation methods and tenure requirements can help this cohort access lending that generalist assessors sometimes dismiss.
Example in practice
A casual hospitality worker averaged $1,650 a week over the past three months. Using 48 weeks the broker annualises income to $79,200. The YTD figure on her latest payslip shows $32,000 over 20 pay cycles, which annualises close to the same figure, confirming the calculation is reasonable.
Related terms
PAYG Income
Income received as a Pay As You Go employee where tax is withheld by the employer before the wage is paid.
Base Salary
The fixed regular component of a PAYG employee income, excluding overtime, bonuses, commissions, and allowances.
Year to Date (YTD) Income
The cumulative gross income an employee has earned since the start of the financial year, shown on each payslip.
Overtime Income
Pay received for hours worked beyond a standard contract, usually at a penalty rate above base hourly pay.
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