Free investor tool
Negative gearing calculator
See the tax effect of a property whose costs exceed its rent, and what it costs you each week after tax. The calculator applies the negative gearing changes legislated for 1 July 2027 based on when you bought.
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How it works
Negative gearing and the 2027 changes
A property is negatively geared when its deductible costs, mainly loan interest, rates, insurance, management and depreciation, are more than the rent. Until now the loss could be deducted from your salary and other income, reducing your tax.
The Treasury Laws Amendment (Tax Reform No. 1) Act 2026 became law on 26 June 2026. From 1 July 2027 it replaces the 50% capital gains discount with inflation indexing plus a 30% minimum tax on real gains, and limits negative gearing on established residential property bought after 7:30pm AEST on 12 May 2026. Properties held before 12 May 2026 keep the existing rules until sold. Established properties bought after that time can only be negatively geared until 30 June 2027; from then, losses can only offset residential property income and gains, with the excess carried forward. New builds that add to housing supply keep full negative gearing.
The numbers are one part of the decision
We look at the figures alongside growth drivers, vacancy, supply and how a property fits your borrowing and portfolio plans, then choose the market that suits your strategy, wherever it is in Australia. See how we buy investment property.
FAQ
Common questions
Is negative gearing being removed?
Not entirely. From 1 July 2027 it is limited to new builds for property bought after 12 May 2026. Properties held before then keep the current rules until sold.
What happens to losses that can't be deducted?
They are quarantined: they can offset rental income and capital gains from residential property, and any excess carries forward to later years.
Does depreciation still count?
Yes, as a deduction. It reduces taxable rental income without being a cash cost, which improves after-tax cash flow.
Is this tax advice?
No. It is a simplified estimate using 2026-27 and 2027-28 resident tax rates and the 2% Medicare levy. The new rules have detailed definitions, so confirm how they apply to you with your accountant.
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