Capital Gains Tax (CGT) Calculator
Estimate CGT on an investment property sale, with the current 50% / 33⅓% discount and the proposed Budget 2026 indexation reform.
Negative Gearing Calculator
Project the annual tax saving from a negatively-geared Australian investment property over 1-20 years. The calculator picks the regime (grandfathered / transitional / reform) automatically based on purchase date and property type under the proposed Budget 2026 changes.
The property
Rental income & tax
Year-1 expenses
Projection assumptions
Total tax saving across 10 years
$4,810
Regime
Transitional (wage offset until 30 June 2027, then quarantined)
- Total net cash impact
- -$144,220
- Ending carry-forward losses
- $136,030
- Annual avg tax saving
- $481
Year-by-year projection
| Year | Rent | Expenses | Loss | Wage deduction | Tax saving | Carry-forward | Net cash |
|---|---|---|---|---|---|---|---|
| 2026 | $30,000 | $43,000 | $13,000 | $13,000 | $4,810 | $0 | -$8,190 |
| 2027 | $30,900 | $44,290 | $13,390 | $0 | $0 | $13,390 | -$13,390 |
| 2028 | $31,827 | $45,619 | $13,792 | $0 | $0 | $27,182 | -$13,792 |
| 2029 | $32,782 | $46,987 | $14,205 | $0 | $0 | $41,387 | -$14,205 |
| 2030 | $33,765 | $48,397 | $14,632 | $0 | $0 | $56,019 | -$14,632 |
| 2031 | $34,778 | $49,849 | $15,071 | $0 | $0 | $71,089 | -$15,071 |
| 2032 | $35,822 | $51,344 | $15,523 | $0 | $0 | $86,612 | -$15,523 |
| 2033 | $36,896 | $52,885 | $15,988 | $0 | $0 | $102,600 | -$15,988 |
| 2034 | $38,003 | $54,471 | $16,468 | $0 | $0 | $119,068 | -$16,468 |
| 2035 | $39,143 | $56,105 | $16,962 | $0 | $0 | $136,030 | -$16,962 |
Notes
- Regime: Transitional (wage offset until 30 June 2027, then quarantined).
- Losses are deductible against wages until 30 June 2027 (year 2026); from year 2027 onward they are quarantined against future property income only.
- Estimate excludes Medicare levy (2%) and any progressive bracket stacking on tax savings.
How this calculator works
Net rental loss= total deductible expenses (interest, council rates, insurance, management fees, maintenance, depreciation) minus annual rental income. When expenses exceed income, the property is "negatively geared".
Tax savingunder the current regime equals the net loss multiplied by the owner's marginal tax rate. A $13,000 loss for a 37%-bracket earner produces $4,810 in tax saving annually — a meaningful subsidy on the holding cost.
Three regime branches apply under the proposed Budget 2026 reform:
- Grandfathered — purchased before 12 May 2026, OR new build any date. Full wage offset for the life of the property.
- Transitional — purchased 12 May 2026 to 30 June 2027, established. Wage offset until 30 June 2027; from 1 July 2027 onward losses are quarantined.
- Reform — purchased 1 July 2027 or later, established. Losses quarantined from day one; carry-forward balance accumulates and can only be offset against future property income.
Carry-forward lossesdon't expire but are locked to property income. They can be offset against a positive rental year or, more commonly, a capital gain when the property is sold. For the CGT side of the picture see the CGT calculator.
What this calculator ignores. Medicare levy (2%), progressive bracket stacking on tax savings, interest-rate cycles within the projection, and the eventual utilisation of carry-forward against a future capital gain. For a Budget-2026 reform deep dive see Negative gearing in 2026 and Negative gearing 2026 Budget grandfathering.
Frequently asked questions
What is negative gearing?
An investment property is negatively geared when its annual expenses exceed its rental income. The net loss is currently deductible against the owner's other taxable income — typically wages — reducing the tax they pay.
How does the Budget 2026 reform change negative gearing?
Properties purchased on or after 1 July 2027 will have rental losses quarantined: zero deduction against wages, 100% carry-forward against future property income only. Properties purchased between 12 May 2026 and 30 June 2027 follow a transitional rule. Properties purchased before 12 May 2026 are grandfathered. New builds keep current rules regardless of purchase date.
What happens to carry-forward losses?
They accumulate as a running balance and can only be offset against future property income — positive rental years or a capital gain on sale. Unlike capital losses they don't expire, but they're locked to property-related income.
Does this calculator model interest rate changes?
No. A single annual expense-growth percentage applies to all expense lines including interest. For rate-cycle-aware projection, use the mortgage repayment calculator alongside, and feed the year-by-year interest figure into the expense input.
Does the calculator include depreciation?
Yes — depreciation is a separate input. Division 43 (building) and Division 40 (plant and equipment) deductions on an investment property can run several thousand dollars annually, especially in the first 10 years after construction. A quantity surveyor's depreciation schedule gives the year-by-year deductible amount. See Depreciation schedules on investment property for details.
Related reading
About this calculator
This estimate excludes the Medicare levy (2%), progressive bracket stacking on tax savings, and any future capital gain on sale. The Budget 2026 reform is draft policy and may change before legislation. Talk to a registered tax agent before relying on a figure for a specific decision.