A fly-in fly-out (FIFO) income can make debt recycling worth a look, but rosters, overtime and allowances change how lenders see it. We structure the lending around how you are paid.
Home › Debt Recycling for FIFO Workers
FIFO pay can combine a base salary with overtime, shift penalties and site allowances. In a good year, that can lift your income and your marginal tax rate.
Debt recycling is one way to put surplus income to work. You repay part of your home loan, then borrow that amount again through a separate split to invest. Our guide has debt recycling explained step by step.
The challenge is variability. Rosters change, overtime comes and goes, and contracts end. The strategy has to work on the income you can rely on, not your strongest year.
Interest on an investment split may be deductible when the borrowed money is used to produce assessable income. A deduction saves tax at your marginal rate, so it is worth more in a year your income is high.
Using the Australian Taxation Office (ATO) 2026-27 resident rates plus the 2% Medicare levy, $10,000 of deductible interest saves about $3,900 at the 37% rate. At the 45% rate it saves about $4,700. In a year your income drops back to the 30% rate, the same interest saves about $3,200.
A tax saving only covers part of the interest. The investments still need to perform over time for the strategy to add value.
If your income regularly reaches the 45% bracket, our page on debt recycling for high-income earners covers the tax side in more depth.
Lenders assess whether you can service the loan, and they can treat each part of a FIFO pay packet differently. What one lender counts in full, another may discount.
As one example, Macquarie's broker guidelines say it considers up to 80% of overtime outside a listed set of essential services. The overtime must be regular, ongoing and shown on payslips. It considers up to 80% of bonus income and typically up to 100% of allowances such as shift and car allowances.
Treatment of site, remote or travel allowances varies, so we confirm it with the lender before an application goes in.
What usually helps an application:
If you contract through your own Australian Business Number (ABN) or company, lenders generally assess the income as self-employed, using tax returns and financial statements.
Debt recycling relies on regular surplus cash going to the home loan. With variable pay, that rhythm needs planning.
Moneysmart suggests three months of expenses as a good target for an emergency fund, and notes an offset account can hold it. It also suggests checking you could still afford repayments if interest rates rose.
If your income does fall, the split keeps running. Our article on handling an income drop mid-recycle sets out your options.
You do not need to be in Brisbane to get started. Our office is in Coorparoo, in Brisbane's inner south, and clients outside Brisbane work with us by phone and video.
Alex Gee is a debt recycling mortgage broker and the founder of Kingfisher Finance Group. The team compares more than 40 lenders and works alongside your accountant and financial adviser.
The first call is free, by phone or video. We cover your goals, current loan, income and savings.
Payslips, roster details, your contract and recent loan statements are enough to start.
We walk you through how we structure the loan before anything is lodged.
We lodge the application and keep you updated through to settlement.
FIFO income can make debt recycling worth considering, mainly because of the tax rate it can put you on. The structure still needs to rest on income a lender will count and cash flow that holds up through a quiet swing.
Start with what your base pay supports, keep a buffer, and let overtime speed things up rather than hold them together.
A free phone or video call to check whether your FIFO income supports the lending side of debt recycling.
Request a Call With Alex →Free, no-obligation call · We call back within 1 business day
Prefer to talk now? Call 0438 376 200
Lenders may count part or all of regular overtime, but the percentage and the history they want vary. We check this before you apply.
It depends on the lender and the type of allowance. We confirm how each one will be treated before an application goes in.
Yes. Calls, documents and the structure review can all happen by phone, video and email, around your roster.
It depends on your expenses and how much your pay varies. Moneysmart suggests three months of expenses as a good emergency fund target, and your adviser may suggest more for variable pay.
It can be if you have a home loan to convert, steady base pay and a long horizon. The tax saving helps, but returns, rates and costs decide whether it adds value.
Your repayments continue on the new income, and the value of the deduction may change with your tax rate. A lending review before the move helps if you plan to recycle further.
Debt recycling for self-employed Australians and business owners: variable income, trust and company structures, set up for deductible investment debt.
Read more → GUIDEUse a hurdle-rate framework to explore when debt recycling may or may not be worthwhile, including borrowing costs, tax and investment returns.
Read more → GUIDELearn how higher interest rates affect debt recycling costs, cash flow and hurdle returns, and what to stress-test before proceeding.
Read more →
1. Arranged a loan when our small business situation made it difficult to qualify.
2. Met requirements to have funding available by a specified date.
3. Understood my needs to setup debt recycling to allow tax structuring.
4. Communicated well throughout.
I would use their services again.
Alex, Jess and the Kingfisher team were second to none and their process from start to finish was faultless. As a self-employed business owner, it can be difficult to obtain finance at the best of times. The Kingfisher team made this an easy and efficient proposition and their continued transparent and efficient communication ensured we were kept up to date at all times. Highly recommend them for your finance needs!
Alex and Jess dealt with our investment loan and provided a top tier service. They kept us up to date and communicated every step of the process making it a seamless and smooth experience! Awesome work team we will definitely be back for future loans!
Jess from Kingfisher was outstanding. I couldn't fault her communication, expertise or dedication to finding the best loan for our situation. The entire process was seamless from start to finish. We'll definitely be using Kingfisher again in the future. A top-tier organisation.
Next Step
Talk it through with Alex
Bring a rough picture of your home loan, income and savings. You will come away knowing whether the lending side looks workable.
Free, no-obligation call · We call back within 1 business day
Prefer to talk now? Call 0438 376 200
