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New annualised income methodology

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How annualised income is calculated

There's a new way to calculate annualised income for applicants who haven't been in their role for a full financial year. Instead of being limited to YTD earnings from 1 July, brokers can now annualise actual earnings going back further.

Here's how it works in practice, using two real-world scenarios.

Scenario one: Essential services worker (e.g. nurse) - employed for 3 months

A nurse has been employed for three months and applies for a Keystart loan on 15 August. Their payslip YTD reflects income from 1 July. Under the new methodology, actual earnings over the last three months can now be annualised. There are two ways to calculate this:

Option A: Use three months of actual earnings

You'll need:

  • the most recent one-month payslip (e.g. latest payslip 12 August).
  • a payslip from at least three months ago (e.g. pay period 11 May).
  • the 2025 income statement.

To work out earnings for the missing period: 

  • take the YTD income from the 11 May payslip and subtract it from the 2025 income statement.
  • add that figure to the current YTD earnings shown on the 12 August payslip.
  • use the Keystart offline calculator (bottom right-hand corner) to annualise the three-month actual earnings from 11 May to 12 August.

Option B: Annualise total income from 1 July 2024 to 12 August 2025

Add the income statement to the current YTD earnings on the 12 August payslip, then use the Keystart offline calculator to annualise actual earnings across the full period from 1 July 2024 to 12 August 2025.

From 1 October 2025 onwards, simply annualise the YTD figure on the latest October payslip.

Scenario two: FIFO worker - employed for 6 months

A FIFO worker has been employed for six months and applies for a Keystart loan on 9 September. Their payslip YTD reflects income from 1 July. Under the new methodology, actual earnings over the last six months can now be annualised. There are two ways to calculate this:

Option A: Use six months of actual earnings

You'll need:

  • the most recent one-month payslips (e.g. latest payslip of 6 September).
  • a payslip from at least six-months ago (e.g. pay period 5 March).
  • 2025 income statement.

To work out earnings for the missing period: 

  • take the YTD income from the 5 March payslip and subtract it from the income statement.
  • add that figure to the current YTD earnings on the 6 September payslip.
  • use the Keystart offline calculator to annualise the six-month actual earnings from 5 March to 6 September.

Option B: Annualise total income from 1 July 2024 to 6 September 2025

Add the income statement to the current YTD earnings on the 6 September payslip, then use the Keystart offline calculator to annualise actual earnings from 1 July 2024 to 6 September 2025.

From 1 January 2026 onwards, simply annualise the YTD figure on the latest January payslip.