Negative Gearing Calculator
New build or established, under the new rules.
From 2027-28 a rental loss on a residential property bought after Budget night no longer comes off your salary. It is parked and carried forward against future rental profit and the gain when you sell. A qualifying new dwelling is excepted and keeps negative gearing as it was.
This runs one purchase through the projection engine three ways: as an established dwelling under the new rules, as a new dwelling, and under the rules before the Budget. Enter the price, the deposit, the rent and your salary to see what each costs to hold, what is parked, what comes back at sale, and the tax on the way out.
- No sign-up needed
- Australian tax rules, year by year
- Free to try
The purchase
Costs assumed at 5% of the price.
What it costs you, and what the tax does
What the calculator shows
Three columns for the same property. The first figure in each is what you are out of pocket over the hold after tax, in today's dollars: the rent, less interest, costs and any principal, plus whatever tax the loss saves you that year. Below that, the tax back and the losses parked year by year, then the sale: the gain, the parked losses recovered against it, and the capital gains tax. Every figure is the projection engine's, run as it would run a property purchase and sale on your own plan.
How the quarantine works
- Who it applies to. Residential property contracted from 7:30 pm on 12 May 2026, from the 2027-28 income year. Anything bought before then keeps the old treatment for good.
- What happens to the loss. It is parked, not deducted. It carries forward against later rental profit from residential property, and against the capital gain when you sell. Nothing is lost while there is eventually a profit or a gain to use it against.
- What it costs you. Cash. You fund the whole shortfall yourself for as long as the property runs at a loss, instead of getting a third or more back at tax time. The calculator's first figure is that cost.
New build or established
A qualifying new residential dwelling is outside the quarantine, so its losses keep coming off your salary, and the law keeps a 50% discount on its gain at sale. Both hang on a definition the Act left to further legislation. Treasury's August 2026 exposure draft proposes a dwelling that genuinely adds to housing supply and is acquired within 24 months of its certificate of occupancy, with the definition to go into primary legislation. Until that passes, the new-dwelling column shows the loss side only. Its sale runs under the same capital gains rules as the established dwelling's, with no parked losses to take off the gain, and its tax at sale could fall once the discount applies.
The capital gains side
Every column sells under the enacted capital gains rules for the sale year: the property is treated as sold and re-bought on 30 June 2027, the cost base after that is indexed to CPI, and a minimum 30% applies as a top-up on your ordinary tax. The old-rules column keeps the 50% discount and no indexation. Because indexation takes inflation out of the gain and the established dwelling recovers its parked losses against what is left, the total tax over the hold can come out lower under the new rules than the old, even as the years of carrying the shortfall cost more.
What it deliberately leaves out
Depreciation and capital works deductions, which favour a new build and would widen the gap in its favour. State stamp duty and land tax, which vary by state and are assumed at a flat 5% of the price and zero respectively. Trusts, companies and self-managed super funds. And the low income tax offset and Medicare levy reduction, which is why the figures are approximate below about $70,000 of income.