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.
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.
Let’s break down the essentials of a personal financial statement and how to assemble one that reflects your real financial situation:
Tools like the government’s MoneySmart TrackMySPEND app or your bank’s online calculators can make this process quicker and more accurate.
This year has brought several shifts in how financial institutions and regulators view personal finances:
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.
Your personal financial statement isn’t just for borrowing. It’s a powerful tool for:
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.
Remember, your personal financial statement is a living document—update it when your circumstances change, and use it to inform every big financial decision.