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Federal and state government employees are considered strong borrowers in Australia. Permanent employment, income certainty, and low default rates can unlock better rates and flexible assessment — here's what to know.
Not universally — but permanent government employment is viewed favourably by lenders. Some credit unions and mutual banks aligned to the public sector offer preferential rates and fee waivers to government employees.
Yes, with the right lender. FBT-exempt salary packaging (e.g. novated leases, meal entertainment) can be grossed up to reflect the pre-tax value, increasing assessable income at some lenders.
Most lenders assess government PAYG income at 100% — the same as private sector. The primary advantage is employment stability: lenders see lower default risk and may be more flexible on serviceability margins.
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