ABN

In recent, I received 2 enquiry phone calls from 2 different clients in these 2 days.
They are both retired and have some investment income: dividend, interest and residential property rental income.
They both consider buying another property for investment. Since they cannot pay 100% from their capital, or they want some tax benefit on interest, they approached the bank or the broker.
They were told to apply for ABN and then their loan will be approved.

As I told them that they don’t have business and they are not eligible to apply for ABN. The broker or bank officer wanted to get their loan applications approved via “low doc” rather than “full doc” as they do not have enough taxable income to pass the serviceability test. I explained to them that they are liable to ATO and the bank if they made false declaration on applying ABN and the loan.