Subcontractor
Last reviewed 13 June 2026 by Nick Lim, finance broker (FBAA).
Subcontractor is a worker or business engaged by a head contractor to perform part of a job, paid per contract rather than as an employee. Lenders treat subcontractor income carefully because it can be irregular and tied to one head contractor, so ABN tenure and recent invoices or BAS are usually needed. Many subcontractors are assessed as self-employed for a low doc loan or self-employed home loan.
Why Subcontractor Matters
Subcontractor income can be strong but lumpy, so lenders look closely at how steady and diversified it is.
- Engaged per contract, not as an employee
- Usually trades under an ABN
- Income can be irregular or tied to one principal
- Assessed as self-employed for a low doc loan
- ABN tenure and recent invoices matter
Common Features of Subcontractor
- Paid per job or contract
- Responsible for own tax and super
- Often relies on one or two head contractors
- Income proven by invoices or BAS
- Common in trades and transport
Official reference: ato.gov.au
What is a subcontractor?
A worker or business engaged by a head contractor to do part of a job, paid per contract and usually trading under an ABN.
How do lenders view subcontractor income?
Carefully, because it can be irregular or dependent on a single head contractor.
What documents prove subcontractor income?
Can a subcontractor get a home loan?
Yes, often via a self-employed home loan or low-doc product if income is consistent.
Subcontractor vs employee for finance?
Employees show payslips; subcontractors are assessed as self-employed, which needs more income evidence.