Quick answer
When a business loan form asks for turnover, give your total sales over the last twelve months, before expenses, and say whether the figure includes GST. Leave out loans, money you've put in yourself, transfers between your own accounts and one-off asset sales. Lenders check the figure against your bank statements and BAS, so the closer it matches, the smoother the assessment.
Key points
- Turnover means total sales before expenses, not profit and not what's left in the bank.
- Say whether your figure includes GST; the ATO's GST turnover excludes it.
- The last twelve months usually tells a lender more than the last financial year.
- Loans, owner contributions, transfers and one-off asset sales aren't turnover.
- Lenders compare your figure with your bank statements and BAS, so keep them consistent.
Give your total sales for the last twelve months, before any expenses, and note whether the figure includes GST. Leave out loans, money you’ve put in yourself, transfers between your own accounts and one-off sales of assets. A lender will check your figure against your bank statements and BAS, so a number that lines up with those makes everything that follows quicker.
The turnover box is the first number most lenders look at, and it’s surprising how differently owners fill it in. Some put profit. Some put last year’s tax return. Some take a great month and multiply by twelve. None of that is dishonest, but a figure that doesn’t match the statements creates questions, and questions cost time. Here’s how to get it right.
What does “turnover” actually mean on a loan form?
Turnover is the money your business brings in from sales before costs come out. It’s sometimes called revenue, gross sales or takings. It is not:
- profit, which is what’s left after costs;
- your bank balance, which is a snapshot, not a flow;
- your drawings or wage, which come out of profit.
For a cash flow loan or an unsecured business loan, turnover is the starting point for sizing. The lender then works down from it, using your statements, to see what’s left for repayments. That’s why getting the starting point right matters.
Should you include GST in your turnover?
This is the most common source of mismatches. Your bank statements show deposits including GST, because customers pay you the GST-inclusive price. Your accounting software might show sales excluding GST. Your BAS reports sales and the GST on them separately.
The ATO’s page on registering for GST describes GST turnover as “gross income from all businesses minus GST”, so the tax world generally thinks in GST-exclusive figures. Many lenders do too, but they compare against deposits that include it.
The practical answer: use whichever figure you have to hand, and say which it is. “Turnover last 12 months: $840k including GST” leaves no room for confusion. A lender can make the adjustment in seconds; what slows them down is not knowing which one you meant.
Last financial year or the last twelve months?
Both are useful, but they answer different questions.
| Figure | What it shows | When it’s most useful |
|---|---|---|
| Last twelve months (rolling) | How the business is trading now | Unsecured and cash flow loans, which lean on recent statements |
| Last financial year | A complete, often accountant-prepared year | Larger loans where tax returns and financials are requested |
| Current year to date | The latest trend | Showing growth or recovery, alongside one of the above |
| A projection | What you expect next year | Only as context; lenders rarely lend on projections alone |
For most unsecured and cash flow applications, the rolling twelve months is the figure that matters, because it lines up with the six to twelve months of bank statements the lender will read. If last financial year looks very different, mention why in a sentence.
What should you leave out of turnover?
A lot of money moves through a business account that isn’t sales. The ATO’s page on what income to exclude lists several amounts a business doesn’t count as assessable income, including GST you’ve collected, money you’ve borrowed and money you contribute as the owner. Lenders strip out much the same things when they calculate turnover:
- Loan advances, including from other lenders, family or a director.
- Your own money going in, such as savings or a capital contribution.
- Transfers between your own accounts.
- One-off asset sales, such as selling a vehicle or a piece of equipment.
- Refunds you’ve received, for example from a supplier or the ATO.
Some of these, like a large grant or an insurance payout, deserve a short explanation of their own. Our guide on one-off deposits on your bank statements goes through how lenders treat them.
Not sure which figure to use for your situation? Send a quick enquiry with your best estimate and a note on what’s in it. A real person will check it with you before anything goes to a lender.
What if the form asks for monthly turnover instead?
Some applications ask for average monthly turnover rather than an annual figure. Don’t pick your best month or your most recent one. Take the twelve-month total, after removing the items above, and divide by twelve. That gives a lender a figure they can recognise when they average your deposits themselves.
If your months vary a lot, it’s worth adding the range alongside the average, for example “average about $38k a month; quietest month around $22k, busiest around $60k”. That single line answers the question a lender will ask next, which is how low the account goes in a slow month. It also shows you understand your own cycle, which is one of the quieter things lenders look for in a cash flow borrower.
Where a form asks for both annual and monthly figures, make sure the two agree. A monthly average that doesn’t multiply out to roughly the annual figure is one of the most common, and most avoidable, reasons an application gets sent back for clarification.
How do lenders check your turnover?
They triangulate. business.gov.au’s guide to applying for a business loan says lenders want to see your financial health, including income, expenses, debts and cash flow. For turnover specifically, they usually compare:
- What you wrote on the form.
- Deposits in your bank statements, minus transfers, loans and other non-sales items.
- Sales reported on your BAS, if you’re registered for GST.
- Your tax return or financials, for larger loans.
If those four numbers sit in roughly the same place, the lender moves on. If the form says $1.2m and the statements show $700k of genuine deposits, the lender has to find out why, and the offer will be sized on what they can verify, not on what you wrote. Overstating doesn’t get you a bigger loan; it just gets you more questions.
What about seasonal or fast-growing businesses?
Seasonal businesses should always use a full twelve months. A ski-hire shop’s July and a beach café’s January are real, but so are their quiet months. A full year shows both, and lenders who know your industry expect to see the swing. If you’d like the loan to match your season, our seasonal business loans page explains how that can work.
Fast-growing businesses face the opposite problem: the last twelve months understate where they are now. The answer isn’t to annualise last month. Give the twelve-month figure, then add the trend: “Last six months averaged well above the previous six; new contract started in April.” Lenders like growth, but they need to see it in the statements.
It can also help to compare your figures with industry norms before you apply. The ATO publishes small business benchmarks, and our guide to ATO benchmarks and business loans explains how lenders use similar ratios.
A worked example
Illustrative. A mobile dog-grooming business, registered for GST, fills in a loan form for $30k to buy a second fitted-out trailer.
The owner’s first instinct is to write $540k, which is last month’s record takings of $45k multiplied by twelve. Looking at the bank statements instead, the last twelve months of deposits total about $480k. Of that, $20k was a loan from a family member and $15k was the sale of an old van. That leaves roughly $445k in genuine sales, including GST.
The owner writes: “Turnover last 12 months: approx. $445k incl. GST. Excludes a family loan and the sale of an old van, both shown on the statements. Growing: last quarter was our strongest yet.” The lender’s own calculation lands in almost the same place, and the application moves straight to assessment.
Got your number? Let’s see what it can do for you
Putting the right turnover figure down is the single easiest way to speed up a business loan. With it sorted, you’ve already done the part most applications trip over. Unsecured and cash-flow options typically run from $5k to $500k, sized on that figure and your bank statements.
The form takes roughly 60 seconds, and there’s no credit check when you first enquire. We don’t send your details out to multiple lenders hoping one bites, so your phone won’t ring off the hook. A real person compares your turnover with what you’ve told us and calls to talk it through. Please give us accurate figures, and tell us whether they include GST, so we can match the right option first time.
Frequently asked questions
Is turnover the same as profit?
No. Turnover is your total sales before any costs come out. Profit is what remains after costs. A loan form that asks for turnover wants the larger, top-line number, while lenders work out repayment capacity separately from your statements.
Should my turnover figure include GST?
Either can work, as long as you say which one you've used. The ATO defines GST turnover as gross income minus GST, and many lenders think the same way. Bank statement deposits include GST, so lenders often adjust for it when they compare.
My business is seasonal. Which turnover do I use?
Use a full twelve months, which captures both the busy and quiet periods. A single strong month multiplied by twelve overstates the business, and a quiet one understates it. If the season matters to the loan, explain it in a sentence.
Do I include income from a second business?
Only if that business is part of the application. Each entity has its own turnover. If you run two businesses, give each one's figure separately and make clear which entity is borrowing.
What if my turnover has grown sharply this year?
Give the last twelve months, and mention the trend, for example 'the last six months are well above the six before'. Lenders like growth, but they'll want to see it in the statements rather than take an annualised estimate on trust.
What if I'm not registered for GST?
Then your figure won't include GST anyway. Just give total sales for the period. If you're getting close to the registration threshold, it's worth knowing that the ATO's test looks at both current and projected GST turnover.