Trust vs Company Calculator
Compare the after-tax cash from selling an investment property held in a discretionary trust versus a company, under the 2027 CGT reforms.
Does a trust or a company keep more when you sell?
The way you own an investment property can make a significant difference to what you keep when you sell.
A discretionary trust and a company are taxed differently, and with the 2027 capital gains tax reforms changing how gains are calculated, choosing the right structure has become even more important.
This calculator compares both structures using the same purchase price, growth, ownership period and sale price. It estimates the after-tax proceeds under the 2027 CGT rules, helping you understand the potential trade-offs before speaking with your accountant or tax adviser.
This calculator includes
General information only. This calculator provides indicative estimates and does not constitute tax or financial advice. The right ownership structure depends on your circumstances and should always be discussed with your accountant or tax adviser.
Frequently asked questions
Is this tax advice?
No. This calculator is an educational tool designed to help you understand the potential tax differences between holding an investment property in a discretionary trust or a company. It is not tax, legal, financial, investment or credit advice. Before deciding how to own an investment property, you should obtain advice from a registered tax agent, accountant or solicitor. koala financial provides lending guidance only and does not provide tax advice.
What tax rules does this calculator use?
The calculator models the legislated 2027 capital gains tax reforms, including cost-base indexation and the 30% minimum tax on capital gains from 1 July 2027. It also models the proposed 30% minimum tax on discretionary trust distributions from 1 July 2028. As this measure has not yet been legislated, it may change. The calculator is a simplified model and does not cover every tax rule or ownership scenario.
Why does a company sometimes produce a better result?
It depends on your goal. If you plan to leave profits inside the company and continue investing, a company may retain more after tax because it pays company tax rather than personal tax. If you plan to sell the property and take the money out personally, additional tax may apply when profits are distributed to shareholders. In some situations, this can reduce or remove the earlier tax advantage. This calculator compares both scenarios so you can see how the outcomes differ.
Does the calculator handle capital losses?
Yes, but only in a simplified way. If the sale results in a capital loss, the calculator assumes no capital gains tax is payable on that sale. It does not model how capital losses can be carried forward or offset against other capital gains, as those outcomes depend on your broader tax position and should be discussed with your accountant.
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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.