Your mining payslip might show $150,000 in annual earnings, but a lender could assess considerably less. The difference often comes down to how overtime, site payments and allowances are treated.
For a home loan for FIFO workers, lenders need evidence that overtime and allowances are likely to continue beyond the current roster.
For FIFO workers purchasing their first property, our first home finance advisers can explain how lenders may assess their income.
Lenders examine the structure and reliability of your earnings before deciding how much income to recognise. Their assessment generally involves these distinctions:
Gross income is what you earn before tax and deductions. Assessable income is the amount a lender accepts when calculating your ability to repay a loan.
Consider a mining employee receiving a $105,000 base salary, $25,000 in overtime and $20,000 in site allowances. Their annual gross earnings total $150,000.
One lender might accept the contracted salary and part of the additional payments. Another may assess income differently after reviewing the employment agreement and previous payslips.
Assessable income is not borrowing capacity. The lender also considers taxation, existing debts, living expenses, proposed repayments and other lending requirements.
An established roster can demonstrate that overtime and shift payments form part of regular earnings.
A worker on a continuing two-weeks-on, one-week-off roster may receive predictable shift payments. A lender may regard those payments as more reliable than overtime earned during a temporary shutdown project.
Consecutive payslips, year-to-date earnings and previous income records can establish whether payments recur or reflect an unusually busy period. Even consistent payments may need reassessment after a roster change.
Employment history and contract conditions help lenders assess whether current FIFO earnings will continue.
Permanent full-time employees generally have defined base salaries and ongoing employment terms. Fixed-term contractors may need to demonstrate contract duration, previous work history and continuity of employment.
Someone with several years of uninterrupted mining employment may be assessed differently from a worker entering the industry. Some lenders consider applicants on probation when their previous experience supports the new role. Others require more evidence.
Direct employment and labour-hire arrangements can involve different verification requirements. For mining engineers receiving project payments or site allowances, our finance advisers for engineers can discuss lending options relevant to their employment arrangements.
Lenders may discount, average or exclude variable employment income when its future availability is uncertain.
The Australian Prudential Regulation Authority’s (APRA) residential mortgage lending guidance identifies a discount of at least 20% as prudent practice for most non-salary income. Higher discounts may be appropriate in some situations.
This is supervisory guidance, not a rule requiring lenders to accept the remaining 80% of every overtime or allowance payment. A lender may use an established average, a lower historical figure or exclude a payment when evidence does not support its continued availability.
FIFO workers may receive several types of payments under one employment arrangement. Lenders may assess these income categories differently:
| Income Type | Assessment Evidence | Possible Limitation |
| Base salary | Contract and recent payslips | Changes to employment terms |
| Overtime | Payment history and current roster | Variable working hours |
| Site allowances | Contract and site assignment | Location-dependent payments |
| Shift allowances | Roster and historical payments | Changes to shift arrangements |
| Production bonuses | Historical bonus records | Performance conditions |
| Travel and meal allowances | Payment purpose and expense records | Expense compensation |
| Living-away-from-home allowance (LAFHA) | Employment agreement and allowance purpose | Additional living expenses |
This table is a general guide. Individual lender requirements and income-recognition policies may differ.
Contracted base salary is generally the starting point for a FIFO income assessment. Lenders commonly verify it through recent payslips and employment records, checking that it aligns with contracted working hours.
An annualised salary may already account for scheduled time away from site. Payments earned during particular shifts need to be distinguished from that fixed amount to avoid counting earnings twice.
Overtime may contribute to assessable income when historical earnings support its continued availability.
Mining workers may earn additional overtime during shutdowns, maintenance or increased production. Regular extra shifts may be assessed differently from payments associated with a temporary project.
An employment contract can permit overtime without promising a minimum number of additional hours. Lenders may compare earnings across an established period before deciding how much to recognise.
Site allowances may be recognised when they form a recurring part of employment income and are expected to continue. They may compensate workers for conditions associated with remote or difficult working environments.
An allowance tied to a temporary assignment may be assessed differently from one included in an ongoing agreement. A worker moving to another mine may retain their salary while losing a location-specific payment. The lender may need confirmation of the new arrangements.
Shift allowances may count towards assessable income when they arise from established working patterns.
A worker regularly rostered for nights may have predictable shift payments. Someone occasionally covering additional shifts may have less consistent earnings.
Lenders may compare previous payments with the contract and current roster. Moving from rotating shifts to daytime work could reduce these payments without changing base salary.
Production bonuses may be recognised when previous payments demonstrate consistent earnings. Bonuses may depend on output targets, individual performance or site results.
A substantial bonus in one year does not establish that a similar amount will be paid again. Lenders may examine earlier payment periods, apply a discount or exclude a bonus linked to a completed project. Discretionary payments may attract additional scrutiny because the employer is not required to repeat them.
Travel and meal allowances may be excluded when they compensate workers for employment-related expenses. Some employees receive fixed payments, while others are reimbursed for actual costs or have expenses paid directly by an employer.
A worker receiving a travel allowance while paying related costs may have little additional disposable income. Lenders may request confirmation of what the allowance covers and whether corresponding costs are incurred.
LAFHA may be excluded from assessable income because it compensates employees for additional expenses or disadvantages associated with living away from their usual residence for work.
The payment may relate to accommodation and food costs under qualifying arrangements. Its tax treatment differs from ordinary salary where it qualifies as a LAFHA fringe benefit, but taxation does not determine whether a lender accepts it for mortgage purposes.
Even where LAFHA appears regularly on payslips, a lender may examine the employment agreement and associated expenses.
Lenders may exclude LAFHA when it compensates for living-away-from-home costs and does not represent income available for repayments. Its treatment depends on these distinctions:
LAFHA can compensate an employee for additional living costs incurred while working away from their usual residence.
A worker may maintain accommodation near a remote worksite while paying household expenses elsewhere. An employee receiving an accommodation allowance, for example, may also pay rent near the mine.
The allowance increases gross earnings but may not increase the amount available for repayments by the same amount. A lender may examine associated expenses before recognising the payment.
A payment’s tax classification does not establish whether it qualifies as assessable mortgage income.
Under Australian tax rules, a payment meeting the conditions for a LAFHA fringe benefit has a different classification from an ordinary employment allowance. A payment informally described as LAFHA does not automatically meet those conditions.
Lenders separately assess the payment’s reliability, purpose and availability for repayments. Taxable employment income is not necessarily accepted in full either.
Employer-provided accommodation and meals can reduce out-of-pocket expenses during a FIFO roster but are not generally equivalent to additional cash salary.
Some employers arrange accommodation, meals and transport directly. A worker may still maintain housing and household expenses at their usual residence, which a lender may consider when assessing repayment capacity.
LAFHA may stop or change when a worker no longer meets an assignment’s conditions. Payments could be affected by leave, reassignment or relocation.
An employee transferring from a remote site to a metropolitan position may no longer qualify for the same allowance. Employment agreements and payroll records can establish when it applies. Historical receipts may not demonstrate that it will continue after a role change.
Recognised allowances can increase the income used in a home loan assessment, although the final borrowing limit depends on the lender’s broader calculations. These hypothetical scenarios show how income recognition changes the assessed amount:
A lender relying only on contracted salary would recognise $105,000 of the worker’s $150,000 gross annual earnings. The table shows the full income breakdown before the extra payments are excluded.
| Income Component | Annual Amount |
| Base salary | $105,000 |
| Overtime | $25,000 |
| Site allowances | $20,000 |
| Total gross earnings | $150,000 |
The worker earns $150,000, but the lender excludes $45,000 in additional payments for mortgage assessment. Those payments remain part of actual earnings but do not increase income accepted in this hypothetical scenario.
A lender accepting 80% of the worker’s overtime and site allowances would calculate annual assessable income of $141,000.
| Income Component | Amount Recognised |
| Base salary | $105,000 |
| Overtime | $20,000 |
| Site allowances | $16,000 |
| Total assessable income | $141,000 |
The 80% assumption is illustrative, not a universal lender rule or a prediction of what any lender will accept. Additional assessable income may support greater borrowing capacity, subject to taxation, expenses, liabilities and repayment assessment.
A lender excluding the $20,000 site allowance while recognising 80% of overtime would assess annual income at $125,000. The table compares all three hypothetical assessments.
| Assessment Scenario | Annual Assessable Income |
| Base salary only | $105,000 |
| Base salary plus recognised overtime | $125,000 |
| Base salary plus recognised overtime and site allowances | $141,000 |
These are hypothetical income assessments, not loan offers or borrowing-capacity estimates. Debts, living expenses, dependants and the proposed loan still affect the result.
A mortgage affordable during a high-earning roster may become harder to manage when overtime or allowances decline.
A worker transferring from a remote assignment to a local role might retain base salary while losing location payments. Overtime could also fall after a maintenance program or temporary production increase ends.
The difference between current earnings and income likely to continue matters when considering repayments over the loan term.
FIFO applicants may need documents establishing contracted pay, payment history and the conditions attached to variable earnings. Supporting records include:
Recent payslips identify ordinary wages, overtime, shift penalties, allowances and year-to-date earnings. Consecutive records show whether additional payments recur or relate to particular assignments.
A lender may ask for clarification when payroll descriptions do not identify a payment’s purpose.
Employment contracts establish agreed salary, employment classification, roster conditions and contractual allowances. They can show whether payments are ongoing or tied to an assignment.
Fixed-term contracts may confirm commencement and expiry dates, helping lenders assess the duration of current employment.
Income statements and historical earnings records show income patterns beyond recent payslips. They may help when unusually high overtime does not reflect normal annual earnings.
A lender may compare previous financial years or year-to-date income when assessing variable payments.
Employer confirmation may establish salary, employment status, roster arrangements and whether allowances are expected to continue.
For labour-hire workers, it may clarify who employs the worker and whether an assignment is ongoing. Lenders may request a letter or direct verification.
Bank statements can confirm receipt of employment income but do not necessarily distinguish salary from allowances or reimbursements.
They may support verification without replacing payslips and employment records.
Roster schedules show how often a worker receives shift-related payments. Employer allowance schedules may explain payroll codes and payment conditions.
These records can distinguish ongoing earnings from payments linked to temporary assignments. Document requirements depend on lender policy and employment circumstances.
Employment changes can affect reliable earnings by altering contracted pay, working hours or allowance entitlements. Common changes include:
A transfer between mining sites may change location-based allowances without affecting base salary.
An employee transferring from a remote mine to a regional operation may lose payments associated with the previous site. Earlier payslips may no longer reflect the new assignment, so a lender may request updated remuneration details.
A new employment contract can change the income a lender verifies. Moving from labour hire to permanent employment may alter salary, allowances and conditions.
A higher-paying contract may also include earnings without an established history. Lenders may consider previous employment in comparable roles alongside the new agreement.
A revised roster can change overtime and shift allowances. Moving from night shifts to daytime work may remove penalties without reducing base salary.
Updated payslips or employer confirmation may help establish the new earnings pattern.
Unpaid periods between assignments can reduce annual income for project-based FIFO workers.
A permanent employee paid during roster breaks has different earnings from a contractor receiving no income between projects. Lenders may examine historical gaps and request further evidence when a worker has recently started a new assignment.
Compare your employment contract with recent payslips to identify which allowances are ongoing, roster-dependent or intended to cover employment-related expenses.
At Ausfirst Lending Group, Richard and our finance advisers can review your FIFO earnings and discuss lending options that may suit your circumstances.
You may qualify, depending on your employment status, previous experience and lender requirements.
A worker moving into FIFO employment after several years in a similar occupation may be assessed differently from someone entering the workforce. Limited income history or conditional employment may require additional verification.
Casual FIFO workers may qualify when their employment and income history meet a lender’s requirements.
Lenders may examine length of employment, historical hours and assignment consistency. A high-earning pay period may not reflect income received across a full year.
Lenders commonly establish eligible gross income before accounting for taxation and other relevant deductions in repayment assessments.
Allowances may be assessed separately according to purpose and classification. Income used for repayment calculations can therefore differ from gross salary and bank deposits.
Eligible overtime and allowances may contribute to refinancing, subject to the new lender’s requirements.
Refinancing involves a fresh assessment of income, commitments and repayment capacity. Our refinancing finance advisers can discuss how a proposed lender may assess your earnings.
Labour-hire arrangements may require additional employment verification.
Lenders may examine contracts, assignment history, earnings consistency and likelihood of continuing work. Payment through a labour-hire provider does not automatically prevent approval.
FIFO workers can apply for home loans while employed in another Australian state.
Working interstate does not automatically affect eligibility, although lenders may assess additional expenses associated with maintaining accommodation in multiple locations.
This article provides general information only and does not consider your individual objectives, financial situation or needs. Lending policies and eligibility requirements vary. You may wish to speak with a qualified finance professional before making borrowing decisions.
