Budget planner
Enter your net salary, bonuses, other income and regular expenses at the payment frequency that suits each line to see your annual totals and overall financial position.
How to use the budget planner
- Enter net salary and bonuses
Pick the pay frequency (weekly, fortnightly, monthly, quarterly, half yearly or yearly) and enter net salary and net bonuses. If you are budgeting as a couple, fill in the partner salary and bonus lines.
- Add other income sources
Enter any investment income, pensions and allowances, rental or board income, and other income, choosing the matching payment frequency for each row.
- Fill in your regular expenses
Work through the expense sections and enter what you spend on each item, setting the frequency to match how often each bill or living cost falls due.
- View your budget summary
Select View summary to compare your annualised total income against your expenses and see your overall financial position.
If you only know your before-tax pay, run it through the income tax calculator first so you enter accurate net salary figures here.
The planner converts every income and expense entry into an annual figure, compares your total income with your spending, and shows your net financial position so you can see what is left for savings or repayments.
What the budget planner includes and leaves out
Included
- Net salary and bonus lines
- Partner net salary and bonuses
- Investment, pension and rental income
- Six payment frequencies per item
- Annualised income and expense summary
Not included
- Lender living expense benchmarks (HEM) and buffers
- 20% shading on foreign or NZD income
- Lender shading on bonuses and rental income
- Visa deposit rules and LVR caps
- FIRB fees and foreign buyer surcharges
How a visa or expat income changes your loan budget
Your household budget counts every dollar that lands in your bank account, but lenders assess income differently. If you are an Australian expat earning in a foreign currency, most lenders shade base salary by 20% before applying Australian tax rates, and bonuses are usually shaded by 20% for currency plus another 20% for lender policy.
For couples on a partner visa, bridging visa or 461 visa, the planner includes both applicants' net salaries, yet some banks refuse to count a temporary visa holder's income at all. Our VSL Matrix™ (Visa x Situation x Lender) matches your visa, your situation and both incomes to lenders that count both salaries.
Budget planner questions
Do lenders use my budget planner expenses when assessing a home loan?Short answer: Only if above benchmark
Only if your declared spending is higher than the lender's benchmark. Australian lenders compare your stated living expenses against the Household Expenditure Measure (HEM) for your household size and income, and use whichever figure is higher. They also test your loan repayments with a serviceability buffer of at least 3.0 percentage points above the product rate.
Should I enter before-tax or after-tax pay in the budget planner?Short answer: Enter after-tax pay
Enter after-tax pay. The salary and bonus lines in this calculator ask for net salary and net bonuses, which is the take-home pay that reaches your bank account after income tax and any student loan deductions. Using net figures gives you an accurate picture of what you have available to spend or save each month.
Will a lender count all of my net bonuses and rental income?Short answer: No, most shade them
No, most lenders shade variable and non-salary income rather than counting 100% of what you enter in a personal budget. If you earn bonuses in a foreign currency as an Australian expat, most lenders shade 20% for currency and usually another 20% for lender policy, both off the original amount, so a A$20,000 bonus counts as A$12,000.
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Written & reviewed byCraig Vaughan, Director & Mortgage Broker
MFAA 47419Credit Representative 376082Last reviewed
Authorised under LMG (ACL 517192). AFCA member 121620.