How a structural change between entity types was repositioned as income continuity, unlocking an equity release that standard policy had already declined.
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A client had been working in the same family business since 2016 — a long, stable employment history. But in 2024, the business restructured. The client moved from receiving PAYG wages to taking management fees through a newly established Trust.
On the surface, this looked like a self-employed history of just one year. The client needed an equity release to contribute to a commercial property acquisition via a separate SPV, and lenders kept hitting the same wall: insufficient self-employed history.
| FY2023 | FY2024 | FY2025 | ||
|---|---|---|---|---|
| PAYG Employee | → | Trust Structure | → | Return Outstanding |
| Wages from family business | Management fees via new ABN | Not yet lodged at application |
The Trust ABN had only been active for one financial year — and many lenders, especially at this time of year, require the most recent financials before they'll assess a file. The initial lender response was a straight decline: less than one year of self-employed history under the Trust structure.
Rather than accepting the surface-level policy outcome, the scenario was reframed entirely. The key argument: the change was structural, not economic. The client had drawn income from the same underlying business continuously since 2016 — the entity type was the only thing that had changed.
By presenting both years of income together — FY2023 PAYG wages alongside FY2024 Trust distributions — and documenting the continuity of the underlying business, the lender was asked to assess the client under a standard 2-year self-employed policy rather than treating the Trust ABN in isolation. The narrative demonstrated that no economic event had occurred; a restructure had.
Lender policies are guidelines — not always hard limits. With the right framing and a clear narrative, it’s often possible to bridge gaps in financial history and turn a policy decline into an approved exception. If you have recently shifted from PAYG to a Trust, company, or other structure, it’s worth workshopping the scenario before lodging an application.
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TS Finance Broking ABN: 30 162 136 790, TS Finance Broking Pty Ltd ABN: 30 162 136 790. Credit Representative #436865 is authorised under Australian Credit License #389087.
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