Negative Gearing Visualiser | SSA
📢
Budget 2026-27: CGT discount replaced, negative gearing restricted for established properties bought after 12 May 2026. See what changed →
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Negative Gearing Visualiser

See how rental income, expenses, and tax deductions affect your investment property cash flow. Full Budget 2026-27 before-and-after comparison built in.

Calculators › Negative Gearing
Updated for Budget 2026-27 · Investment Property · Rental Income

The Budget 2026-27 changed the rules for established properties bought after 12 May 2026. This tool shows three scenarios side-by-side so you can see exactly what your after-tax position looks like under each outcome.

Educational tool only. Not financial or tax advice.

🔔 Budget 2026-27: Negative Gearing Restrictions

From 1 July 2027, negative gearing is limited to new builds for properties purchased after Budget night (12 May 2026). Established properties bought after that date can only offset losses against rental income; excess losses carry forward. Full Budget breakdown →

🔒
Pre-Budget
Bought before 12 May 2026. Fully deduct losses against wages and other income.
🏗
New Build (post-budget)
New builds retain full negative gearing deductibility against all income.
🏘
Established (post-budget)
From 1 Jul 2027: losses offset rental income only. Excess carries forward.

Property & Loan

$
$
Total cost base: $580,000
$
Loan: $410,000

Rental Income & Your Tax

$
Annual: $25,500
$
Gross Yield
4.82%
Net Yield (ex-interest)
2.96%

Annual Expenses

$
$
$
$
$
$
$
8% = $2,040/yr

Annual Cash Flow Breakdown

↗ Income
Rental Income (50 wks) $25,500
↘ Expenses
Total Deductible $34,865

Pre-tax cash flow (cash only): −$9,365/yr

Negatively Geared
Weekly after-tax holding cost
$122
/week
after-tax holding cost

Your Scenario Comparison

🔒 Full Deduction Applies to you
Taxable loss−$9,365
Deductible against wages✓ All $9,365
Tax saving (brackets + Medicare)+$2,997
$110,636 – $120,000 @ 30%save $2,810
Medicare levy (2%)save $187
Total saving$2,997
Net weekly cost−$122/wk
🏘 Ring-Fenced (Post-Budget Established)
Taxable loss−$9,365
Deductible against wages$0 (ring-fenced)
Carried forward to future years$9,365
Year tax saving$0 (deferred)
Net weekly cost−$180/wk

This property costs you $122/week after tax. The strategy works if the property value grows faster than your net losses.

The Three Scenarios

The tool models three different situations. Which one applies depends on when you bought your property.

Pre-Budget

Bought before 12 May 2026

  • Full losses offset against wages and other income
  • Immediate tax saving each year the property is negatively geared
  • No change from current rules
  • Grandfathered for as long as you hold the property
New Build (post-budget)

New build bought after 12 May 2026

  • Full losses still offset against wages and other income
  • Same treatment as pre-budget investors
  • Government incentive to encourage new housing supply
  • Applies to residential new builds only
Established (post-budget)

Established property bought after 12 May 2026

  • Losses can only offset rental income, not wages
  • Excess losses carry forward to future years
  • Tax saving is delayed, not eliminated
  • Applies from 1 July 2027 for gains from that date
Educational purposes only. Tax saving calculated using incremental bracket-stacking (ATO 2024-25 brackets + 2% Medicare levy), not a flat marginal rate. Budget 2026-27 negative gearing restrictions apply from 1 July 2027 for established properties bought after 12 May 2026. Transition relief applies if purchased before 1 July 2027. Pro-rata days-based apportionment for assets straddling the cutoff follows ATO draft guidance. Actual outcomes depend on your full tax situation. Consult a registered tax agent.
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