PAYG
Pay As You Go — Australia's standard employment tax. Easiest to assess.
What is PAYG?
Pay As You Go (PAYG) is Australia's standard income tax withholding system for employees. Your employer withholds tax from your gross salary and remits it to the ATO. PAYG earners are the simplest borrowers to assess — two recent payslips and a group certificate usually suffice.
Why it matters for you
Lenders love PAYG. Approvals are faster, policies more lenient, and interest rates more competitive. If you're transitioning from PAYG to self-employed, time major borrowing decisions before the transition — or plan for 2 years of financials post-transition.