Australian Property Tax Calculator
Discover your real after-tax property costs and see how negative gearing saves you thousands each year.
Free calculator for Australian investors. No email required. Instant results.
Updated for the enacted 2026 NG / CGT reforms
This calculator models the post-12 May 2026 negative gearing loss-quarantining rules. Established properties acquired after the cutoff cannot offset losses against salary; new builds retain full offset; existing assets are grandfathered. The reforms were enacted in June 2026 and commence 1 July 2027. The 7:30pm AEST 12 May 2026 acquisition cut-off governs negative gearing; the CGT transition applies to every qualifying asset through a deemed sale at market value on 30 June 2027, regardless of purchase date. Outputs are estimates only. Always consult a registered tax agent. Read the full reform guide →
Property Details
Enter the purchase price
Deposit
$100,000
Loan Amount
$400,000
Current mortgage rate
Income
(5.0% gross yield)
Annual Expenses
≈ $2,000/year
Typical: 1-2% of property value
Tax Information
Used to calculate your tax benefit from negative gearing
Based on division 43 & 40 depreciation schedules
Budget 2026 Reform
When Did You Buy? (2026 reforms)
Purchase date determines negative gearing. Established dwellings contracted before 7:30pm 12 May 2026 keep full negative gearing; later ones have losses quarantined from 1 July 2027. It does not determine CGT: every individually held asset is deemed sold at market value on 30 June 2027, the gain to that date keeps the 50% discount, and later growth is taxed on the CPI-indexed gain with a 30% minimum. Models the enacted Treasury Laws Amendment (Tax Reform No. 1) Act 2026. Administrative detail (ATO valuation guidance, the apportioning-method instrument, the new-dwelling definition) is still being finalised.
Date you signed (or will sign) the purchase contract. Pre-12 May 2026 = negative gearing grandfathered.
New builds keep full negative gearing and the 50% CGT discount on later growth (definition pending).
Note: This calculator provides estimates. The Budget 2026 reform mechanics modelled were legislated in June 2026 (key changes commence 1 July 2027; pre-12 May 2026 holdings are grandfathered). For accurate tax planning, consult with a qualified accountant or tax advisor.
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Important Disclaimer
This calculator provides estimates only and should not be relied upon for financial or tax advice.
- • Tax laws change regularly—consult with a qualified tax professional
- • Depreciation estimates are based on typical schedules, not your property
- • Loan interest and expense deductibility depends on your specific circumstances
- • Personal use vs investment property classification matters for tax
- • Individual tax outcomes vary based on your complete financial picture
Before making investment decisions, consult with an accountant or tax advisor.
How the Calculator Works
Enter Property Details
Provide your property price, loan details, and annual rental income.
Automatic Calculations
We calculate annual costs, negative gearing loss, and tax benefits instantly.
See Your Benefits
View tax savings at your income bracket and effective property costs.
Australia-Specific Features
- Negative Gearing: Shows how property losses reduce your taxable income
- Tax Brackets: Calculates real tax savings at your income level (19%, 32.5%, 37%, 45%)
- Depreciation: Includes building depreciation and plant & equipment deductions
- Loan to Value: Drag to adjust LVR (50-95%) and see impact
- Cost Breakdown: Visual breakdown of all property expenses
Calculator FAQs
What is negative gearing?▼
Negative gearing occurs when a property's annual costs (interest, rates, insurance, maintenance) exceed the rental income. This creates a tax loss you can deduct against your salary or other income, reducing your overall tax bill.
Are these tax benefits guaranteed?▼
No. Tax benefits depend on many factors: whether the property is a genuine investment, property classification, mixed-use rules, and individual tax circumstances. Always consult a qualified tax professional before relying on these estimates.
How is depreciation calculated?▼
Building depreciation is typically 2.5% per year. Plant & equipment (carpets, appliances) depreciate faster (10%+). You'll need a professional depreciation schedule to claim exact amounts. This calculator lets you input your estimated or actual depreciation amount.
What's the LVR and why does it matter?▼
LVR (Loan to Value Ratio) is the loan amount as a percentage of property price. It affects your interest costs—higher LVR means higher interest deductions. Most lenders offer 80-90% LVR. A larger deposit (lower LVR) reduces interest but increases your upfront cash requirement.
How often should I update my calculations?▼
Recalculate when: interest rates change, you refinance, property value changes, rental income increases/decreases, or your personal income changes. Tax laws also change annually, so check with your accountant each financial year.
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