Negative Gearing Calculator
Estimate your weekly holding cost and see how the 2027 negative gearing rules affect your cash flow.
How do the 2027 rules change what your property costs?
Negative gearing can reduce the after-tax cost of owning an investment property when your rental income is less than your expenses. This calculator estimates your weekly holding cost before and after tax, helping you understand what the property may actually cost to own.
It also reflects the 2027 negative gearing changes. Compare the impact of an eligible established property, where rental losses are quarantined, with an eligible new build or grandfathered property, where losses remain immediately deductible.
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Frequently asked questions
Is this tax advice?
No. This calculator is an educational tool that estimates the after-tax holding cost of an investment property. It does not constitute tax, financial, legal, investment or credit advice. Always confirm your tax position with a registered tax agent or accountant.
What changed under the 2027 negative gearing reforms?
For eligible established residential properties purchased after 7:30 pm AEST on 12 May 2026, net rental losses can no longer be claimed against salary or wage income. Instead, those losses are carried forward and may be used against future rental income or capital gains from residential property. Eligible new builds and properties that qualify under the transitional rules continue to receive immediate deductions under the previous rules.
How is the tax saving calculated?
The calculator estimates the tax impact using your taxable income, the applicable resident income tax rates and the Medicare levy. This provides a more personalised estimate than applying a single marginal tax rate.
Should I include depreciation?
Yes, if you know the amount. Depreciation is a non-cash deduction that can increase your tax deduction without increasing your weekly cash expenses. If you don't yet have a depreciation schedule, you can leave this field at $0 and update it later.
Does negative gearing make an investment property a good investment?
Not necessarily. Tax benefits can reduce the cost of holding an investment property, but they shouldn't be the main reason for buying. A property's long-term performance depends on factors such as location, rental demand, capital growth potential and your overall investment strategy.
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These figures are a guide, not a guarantee, and they're not legal, financial, tax or credit advice. Book a free discovery call and get real numbers for your situation.