Personal Financial Statement: Your 2025 Guide to Smarter Money Management

For Australians looking to get ahead financially in 2025, there’s a tool that’s both simple and powerful: the personal financial statement. Whether you’re applying for a home loan, planning your next big purchase, or just want to get a handle on your finances, understanding—and updating—your personal financial statement can be a game-changer.

What Is a Personal Financial Statement?

A personal financial statement is essentially a snapshot of your financial health at a specific point in time. It lists your assets (what you own) and liabilities (what you owe), giving you a clear picture of your net worth. While it might sound like something only business owners or high-flyers need, everyday Australians can benefit from creating and reviewing one regularly.

In 2025, lenders, financial advisors, and even some rental agencies increasingly request up-to-date personal financial statements as part of their due diligence. With tighter lending standards and more focus on responsible borrowing, being able to produce an accurate, up-to-date statement puts you ahead of the pack.

Building Your Personal Financial Statement: Step by Step

Let’s break down the essentials of a personal financial statement and how to assemble one that reflects your real financial situation:

• Assets: Include bank balances, superannuation, property values (updated to reflect 2025’s market), shares, vehicles, and any other valuables.
• Liabilities: List your mortgage, car loans, personal loans, credit card balances, HECS-HELP debt, and any other outstanding obligations.
• Net Worth: Subtract your total liabilities from your total assets. This figure is your financial baseline.

Tools like the government’s MoneySmart TrackMySPEND app or your bank’s online calculators can make this process quicker and more accurate.

Why It Matters in 2025: Policy, Lending, and Lifestyle

This year has brought several shifts in how financial institutions and regulators view personal finances:

• APRA’s updated lending guidance means banks are scrutinising not just your income, but your complete financial position—making a current financial statement essential for loan applications.
• ASIC’s focus on responsible lending has led to more in-depth checks on borrowers’ liabilities and living expenses, often requesting supporting documents.
• Cost-of-living pressures and rising interest rates have made it more important than ever for Australians to know where they stand before making big decisions.

Consider this scenario: Grace, a Sydney-based nurse, wants to refinance her mortgage. Her lender asks for a detailed list of her assets and debts. Because Grace has kept her personal financial statement up to date, she can respond quickly, negotiate better terms, and avoid costly delays.

Making Your Statement Work for You: Beyond the Banks

Your personal financial statement isn’t just for borrowing. It’s a powerful tool for:

• Setting goals: Want to save for a home deposit, an EV, or a family holiday? Your statement shows you exactly what you need to reach your targets.
• Tracking progress: Reviewing your statement every six months reveals how your net worth is growing—or where you might need to cut back.
• Planning for emergencies: Knowing your cash reserves and debts helps you prepare for unexpected expenses or job changes.

In 2025, with the ATO’s ongoing crackdowns on undeclared income and new rules for investment property deductions, being able to demonstrate your financial position is increasingly valuable for both tax time and wealth planning.

Tips for Keeping Your Personal Financial Statement Accurate

• Update property values using recent CoreLogic or Domain reports.
• Include all debts, even Afterpay or Zip Pay balances.
• Review your superannuation balance after each quarterly statement.
• Use secure digital tools to track and store your statement for easy access.

Remember, your personal financial statement is a living document—update it when your circumstances change, and use it to inform every big financial decision.