Year to Date (YTD) Income
The cumulative gross income an employee has earned since the start of the financial year, shown on each payslip.
In detail
Year to date figures appear on every Australian payslip and run from 1 July to 30 June. Lenders use YTD gross to sanity check the annualised base salary declared by the borrower. Dividing YTD gross by the number of pay periods elapsed and multiplying by the annual pay frequency should match the declared base salary within a reasonable tolerance.
When YTD annualises higher than the declared base salary it may indicate overtime, bonuses, or commissions the borrower has not mentioned. When it annualises lower it may indicate unpaid leave, reduced hours, or a recent pay cut. Either way the discrepancy warrants a conversation with the borrower before the file is submitted.
Why it matters for brokers
YTD cross checks are one of the fastest ways to catch income misstatement. Lenders and assessors run this calculation as a matter of course and brokers who pre empt discrepancies avoid rework during credit assessment.
Example in practice
A borrower declares $110,000 base salary. The October payslip shows YTD gross of $42,000 over 8 fortnights. Annualised that is $136,500, 24 per cent higher than the declared base. The broker queries it and discovers the borrower has been earning consistent overtime which they had not mentioned.
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.
Overtime Income
Pay received for hours worked beyond a standard contract, usually at a penalty rate above base hourly pay.
Bonus Income
Discretionary or performance based payments made in addition to base salary, usually paid annually or biannually.
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